Partnerships with customers and suppliers are one part of the Liljedahl Group’s growth strategy. Why are partnerships important?
Long-term and close interaction is becoming more and more important. These partnerships mean that Liljedahl Group can grow together with its customers and suppliers on both existing and new markets.
Our major customers within the industrial divisions are moving towards having fewer global partners, which will satisfy strict requirements on quality and precision of delivery on all markets where the customers operate. Through these requirements, we are driven towards continuously developing our products and processes, and increasing our presence on local markets.
Long-term partners with strong brands are also a driving factor in the development of our commercial divisions, not just on the after-sales market. When our partners develop their products, they create opportunities for us to develop our business and take a step forward.
Why do the customers choose the companies within the Liljedahl Group?
We have gained a good position in Sweden, Germany, Poland and Slovakia. Our customers know us and they know our quality. With the merit we have created in our home market, we have the opportunity to grow within our existing areas of operation. We have dealt with the financial crisis, in contrast to a number of our competitors, and have been able to continue to deliver high quality products.
The industrial companies in the Group have strengthened their positions in the wider world. Which markets are showing potential?
Development in the field of winding wire has been particularly gratifying. We have increased our volumes and profitability in Central and Eastern Europe, due to the general economic recovery.
With investments in our Chinese unit, we have created a good platform, which we will try to develop further over the coming year.
Germany has recovered very strongly. Our German unit works closely with the industry, for instance, in the development of contact wire and other products for power supply for trains.
How have the commercial divisions been affected by the recovery of the Nordic market?
We have had a more normal year when it comes to demand for trucks, which is reflected in the financial results. We are continuing to invest in our truck workshops. At the beginning of the year, our full-service facility in Nässjö, Sweden was officially opened, and we are building a facility this year in Vimmerby.
Our machine tools business was particularly weak in 2010, but the influx of orders from the Swedish engineering industries increased slowly during the second half of the year and, during 2011, the Nordic manufacturing industry is expected to recover. One competitive advantage is that, by acquiring Prima Scandinavia, we broadened our product offer with advanced 2-D and 3-D laser machines for sheet-metal forming.
Expertise is the most important factor for success for the Liljedahl Group. What are the focus areas this year?
I am proud of the Liljedahl Academy, a leadership development program for the Group’s managers in collaboration with the International Business School in Jönköping. A common training program is a positive way of holding a broad operation such as the Liljedahl Group together, at the same time as strengthening our managers.
We are focusing on new expertise at all levels in the Group. Liljedahl Group's board of directors has been joined by new members, Anders Paulsson, President and CEO for the DIAB Group and solicitor Sven A. Olsson, who is experienced as a board member and adviser to many family-owned companies.
Which factors will give us success in 2011?
Continued focus on expertise at all levels! We are working deliberately to increase the technological content of our range. Here, we need more employees who can find solutions within the interface between the customers’ wishes and what is technologically possible.
We must also continuously develop our quality and productivity! The industrial divisions have introduced models for lean production, with the object of increasing efficiency. We are investing in increased process monitoring and machine efficiency, which should produce benefits over the long term. In our commercial divisions, there is on-going continuous development for the purpose of producing a better and more efficient service to our customers. All these focus areas will produce results in 2011.
What are the challenges facing the Liljedahl Group? The Liljedahl Group must have a larger profit margin in the future, in order to grow and become one of the leading family-owned companies in the Nordic region. I can see signs that our profitability can increase in 2011, but I can also see threats, above all in the currency market, which can diminish our competitive position in relation to Europe.
For profitable growth, we must focus on margins and on market share. We must use our capital in a more rational way, in order to reduce our reliance on capital. Together with our customers, we must look after our ability to enhance the efficiency of all parts of our shared processes.
What growth areas look promising?
With our products, we are close to many areas of growth. As energy efficient electrical and hybrid vehicles are developed, the copper content in the engines of those vehicles is increasing. The European electricity network needs to be expanded and modernised in order to reduce energy loss. This is increasing demand for high-voltage cables and transformers, which benefits all of our industrial divisions. Also, in the expansion of renewable wind and solar energy, our products put us in the right place.
The Group has a strong position in the electro technical field in Europe, a position which, in the long term, can open more markets to Liljedahl Bare Wire and Liljedahl Winding Wire. Liljedahl Steel Wire can build a good platform in Europe, with the Nordic region as its base.
Liljedahl Machine Tools is in a good position to grow, through its increased presence on all Nordic markets, and a broader customer offer within current product areas. Liljedahl Trucks will continue to develop and increase its presence as a long-term partner with Volvo. Liljedahl Cars has a stronger product offer now, and can benefit from the new ownership structure of Volvo Cars, which creates conditions for product development and growth.
CEO and President
Liljedahl Group AB