Group strategy and strategic cornerstones

Strategy for a better 迈博体育

迈博体育’s strategy aims to build or maintain leading positions in selected segments. During the year, the focus on life science was further increased with the establishment of the new 迈博体育 Medical Solutions business area.

迈博体育’s strategy is to build or maintain leading positions in selected segments. These are characterized by long-term relationships and partnerships, where 迈博体育 develops future products and solutions together with customers. The early market insights and application expertise of 迈博体育’s employees add significant value. This creates the conditions for recurring sales and builds value for both customers and 迈博体育.

“Through our structured approach and focus on the right niches, both organically and through bolt-on acquisitions, we are creating a 迈博体育 that will be more profitable, fast-growing and less cyclical in the long term.”

Selim Timocin, Vice President Strategy & Business Development

Portfolio optimization

The Group is working systematically to identify those positions that have high growth and the potential for good profitability. The optimization work includes choosing where to focus the portfolio and identifying gaps in our existing offerings. This may involve expanding the offering, developing new applications, or expanding into new technologies or segments.

迈博体育 makes an overall assessment based on multiple parameters of which segment, industry, niche and geography the Group can best optimize its business portfolio.

Growth through acquisitions
Acquisitions are a core feature of 迈博体育’s strategy, and the Group acquires operations in attractive segments and niches where there are opportunities to achieve competitive advantages and more quickly reach a leading position. The acquisitions are often small bolt-on acquisitions. In 2024, the largest acquisition to date was completed in medical – Baron Group, a leading Australian-Chinese company that manufactures advanced precision components in silicone rubber. Acquisitions also were made during the year in growth areas such as aerospace, semiconductor manufacturing and pipe repair. The acquisitions further strengthen 迈博体育’s position in attractive and fast-growing industries. Portfolio optimization also includes identifying those areas that no longer belong to the core business.

In recent years, the Group has divested operations in areas such as automotive, tires and oil & gas. Altogether, the divestments have created a 迈博体育 with a better growth profile, higher profitability, that is less cyclical and has a better sustainability profile.

Structural improvements

迈博体育’s focus is on developing its operations and localizing them to areas where 迈博体育 can grow, recruit the right talent and do the best job. However, it is also about developing offerings that make life easier and increase value for customers, as well as developing and working within new business models.

In 2024, 迈博体育 increased investments in its existing operations. At the beginning of 2024, the investment was announced in a new production facility in Costa Rica for medical technology solutions. The new facility will be established close to a number of international customers with operations in the region and will be the Group’s first facility in the country. A facility is also being built in Morocco to produce seals for the aerospace industry to be close to the many customers in the region, while increasing capacity to meet the strong global growth in the aerospace industry. In Rutherfordton, North Carolina in the US, 迈博体育 Group is investing in a new production facility to expand its business for engineered coated fabrics. The investment primarily aims to strengthen leading positions in aircraft evacuation slides, water infrastructure, advanced materials for healthcare, and outdoor products.

Structural improvements are also about developing business models and customer offerings. Artificial intelligence (AI) plays an increasingly important role here and is used, for example, to automate quality control in manufacturing and to shorten the development time for the right customer solution to be applied to a specific customer requirement. This also includes initiatives in digitalization, such as improved enterprise resource planning (ERP) systems. The share of products and services supported by digital tools is growing steadily. One example is the marine infrastructure offering, where a software solution combined with solutions for berthing and mooring creates smarter and more automated ports, thus increasing safety and reducing emissions from vessels.

Geographical balance

迈博体育 sees strength in its ability to combine a strongly decentralized and local organization with the capabilities of a global Group. Business decisions are made close to the customer, providing flexibility as well as market and customer knowledge.

A geographical balance reduces the impact from fluctuations in the economy and currencies or from trade barriers. The extensive local presence of 迈博体育 also means the Group does not have significant export flows. 迈博体育 has operations in more than 40 countries with approximately 100 manufacturing sites and sales to just over 140 countries.

The geographical balance has changed significantly over the last decade. In the past, Europe dominated and accounted for three quarters of sales. In 2024, Europe represented around 44 percent of sales with North and South America representing 33 percent and Asia and other markets 23 percent. This provides better exposure to high-growth regions.

Excellence

迈博体育 has a systematic internal procedure to further improve core business processes. This is done through training via 迈博体育 Group University and through customized efficiency tools that are deployed across the business.

Manufacturing Excellence
Energy Excellence
Purchasing Excellence
Sales Excellence
People Excellence

Megatrends impacting 迈博体育

The 迈博体育 Group is impacted by a number of megatrends that create business opportunities but also drive change across the business. These trends are characterized by the fact that they are based on global patterns and that they are already evident today, but are expected to play an even larger role in the longer term.

Geopolitical and demographic changes

World trade is undoubtedly moving in a more protectionist direction, with tariffs and other trade barriers threatening to reduce global trade in the long term. At the same time, there is a clear eastward shift in trade, with the Asia-Pacific region growing rapidly while more mature economies struggle with weak growth. The West also faces a demographic challenge with an aging population and a declining birth rate.

What is means for 迈博体育
The 迈博体育 Group is characterized by a local presence with global capabilities. This means that with approximately 100 facilities much of our production and development is close to our customers in, while our expertise in materials and applications is shared globally. In 2024, we further strengthened our presence in Asia and in other emerging geographies, both through acquisitions and by building new facilities. During the year, we also established 迈博体育 Medical Solutions business area, which clarifies our focus on healthcare and medical – an industry that already accounts for more than one-tenth of global GDP, according to WHO.

Resource efficiency for sustainability

The world is undergoing a transition of major proportions to reduce greenhouse gas emissions, while scarce natural resources are creating significant challenges. The Paris Agreement’s goal of limiting global warming to 1.5°C requires businesses and society to transition and think in entirely new ways. Above all, it is about improving the efficiency of energy consumption and replacing fossil fuels with both renewable and fossil-free alternatives.

What it means for 迈博体育
迈博体育’s solutions are used in renewable energy, such as wind power and hydrogen. They also contribute to reduced energy consumption and extended service life in a range of industrial applications, thanks to their unique properties. Water infrastructure is a growing area, helping to provide drinking water to people and sealing leaks in infrastructure systems. At the same time, we are transitioning our own operations to reduce carbon emissions, improve energy efficiency through our Energy Excellence program, and increase the share of bio-based or recycled raw materials in our products.

Urbanization and mobility

Migration to large cities is taking place all over the world, particularly in emerging markets. This trend will increase the demand for more efficient cities, which will require major investments in infrastructure – an area where there are currently large gaps between needs and actual investments. The need for mobility, for both shorter distances within and between cities and for longer trips, is expected to increase in pace with rising labor mobility and tourism.

What it means for 迈博体育
迈博体育’s solutions are integrated into the equipment used to construct both buildings and infrastructure. Our seals and profiles also contribute to energy-efficient buildings. During the year, the Group increased its exposure to water infrastructure – an area that is growing both through new construction and rehabilitation. Regardless of whether it concerns a mountainbike ride or a business trip by train or plane, our solutions are there to ensure a safe and efficient journey.

Technological advances and artificial intelligence

Technological advances, especially in AI, are happening at a rapid pace and will have a major impact on society, not least on industrial processes. These processes can be significantly streamlined, contributing to a reduction in environmental impact, among other benefits. At the same time, the level of automation is increasing in both industry and society.

What it means for 迈博体育
Semiconductor production is a key piece in the rapid development of AI. In this area, 迈博体育 develops sealing solutions for the advanced equipment required in production of semiconductors. Automation is a clear trend in industry, and demand for our solutions is growing. AI and automation are also an increasingly important element in the development of our own business – from streamlining production and administration to developing marketing and customized offerings.

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Group strategy & strategic cornerstones