Addtech Industrial Solutions markets and sells machine components, automation solutions, products made of polymeric materials and customer-specific products in electro-mechanics and connection technology. The business area’s own branded products are marketed and sold to local as well as global industrial customers. In 2010/2011 net revenues amounted to MSEK 1,567, which is equivalent to 35 percent of Addtech’s revenues.
Business
Addtech Industrial Solutions is the Group’s business area with the highest proportion of sales that comprise products developed and manufactured in house – often marketed under own brands. The business area includes several companies that are very advanced in their creation of value that is both knowledge- and technology-intensive. Industrial Solutions thus trades in suppliers’ components and subsystems as well as in proprietary products and brands.
A large proportion of the products and solutions are also marketed internationally. The area’s offering includes gaskets, seals, moulded components, vibration dampers, chains, gear units, power and signal transmission components, automation components, and measuring and testing systems.
Customers and market
The companies in Industrial Solutions develop and market products manufactured in house under own brands to industrial customers in several industries in the international market.
The focus of the business area’s agency activities is primarily on solutions in automation, electronics and electromechanics for manufacturing industries in the Nordic market.
Almost 30 percent of the business area’s revenue comes from markets outside the Nordic countries – partly through sales from own subsidiaries in the United Kingdom, Germany, Austriaand China, and partly through exports.
Examples of customers
ABB, BT Industries, MAN B&W, Vestas Wind Systems and the Volvo Group.
Examples of competitors
OEM International and Indutrade.
Development
As a whole, the business area achieved a very good recovery compared to the decline in sales of the preceding year. Most markets in which the business area operates displayed a strong recovery and growth. However, the business area’s sale of polymer products in the Danish market reported lower demand. Demand for products supplied to the vehicle industry and the telecom segment and for automation solutions and machinery components was buoyant all year. Apart from a temporary levelling off period at the turn of the calendar year, demand in the wood products and paper industry was vigorous during the year. Demand for electric motor solutions, medical technology products and aftermarket products for the energy segment took longer to pick up speed, but grew well during the latter part of the year.
Delivery and lead times for components were long during parts of the year, but have now stabilised. The high prices of raw materials and the strong Swedish krona were challenges for some of the companies during the year