Addtech Energy & Equipment markets and sells battery solutions, products for power transmission and equipment and materials for production processes in industry. Customers come from the commercial vehicle industry, the energy and tele-coms sectors and the engineering industry. In 2010/2011 net revenues amounted to MSEK 851, which is equivalent to 19 percent of Addtech’s revenues.
Business
Addtech Energy & Equipment markets and sells battery solutions, power transmission products, and equipment and material for industrial production processes. Its customers are mainly in the energy and telecom sectors, the commer-cial vehicle industry and in engineering.
Examples of products are industrial batteries, electrical power products, production machinery and consumables. In addition to trading, this area’s companies also manufacture niche products under their own brands.
In close collaboration with customers and suppliers, standard components and solutions are adapted to add value, mainly in niches for battery solutions and power transmission products. Certain companies also offer aftermarket services such as training, maintenance and support, which generate long-term customer relationships and recurring revenue streams.
Customers and market
The Nordic countries constitute the business area’s main market. Sales are evenly distributed between OEM customers and the end-user segment. Customers primarily operate in the energy sector, telecom and the automotive industry. Sales outside the Nordic region account for 13 percent of revenue, and the most important non-Nordic markets are Poland and the Baltic States.
In the areas of batteries, electrical power products and transformers, Energy & Equipment’s companies hold leading market positions in niches with a stable demand for new purchases and aftermarket services. Important applications for batteries include medical technology equipment, specialised vehicles and telecom facilities.
The energy market is in an interesting development phase, in part following investments in infrastructure for power grids. Addtech sees, above all, the Baltic region as a highly attrac-tive market. Economies like Poland, Estonia, Latvia and Lithuania have grown fast, which has spurred investments in the electricity market. All these economies have been hit by the global economic crisis to a greater or lesser extent, and only time will tell when investments in new major infra-structure projects can be carried out.
Customers
ABB , Ahlsell, Atlet, BT Products, Ericsson, Onninen and Sandvik.
Examples of competitors
G&L Beijer, Indutrade and OEM International.
Development
As a whole, the year was one of recovery, with a very buoyant autumn and very favourable results for the entire business area. The Swedish operations were the first out of the starting blocks after the recession. The Finnish operations recovered later during the autumn, while demand in Denmark did not strengthen until the fourth quarter. As a result of hard work on costs and working capital throughout the preceding year, the increased demand led to improved earnings and a better profitability level for the business area.
The business climate for power transmission products supplied to the energy sector and for industrial battery solutions to vehicle and telecom customers improved steadily during the year. Demand was more stable for battery solutions for other market segments. The sale of equipment and consumables for industrial production processes recovered from the considerable drop in volume that occurred during the recession. During the fourth quarter, however, growth in demand slowed down compared to earlier in the year.