Group Strategy & Strategic Cornerstones - Trelleborg AB

Group Strategy &  Strategic Cornerstones

Trelleborg’s strategy is to secure leading positions in selected segments. This means that Trelleborg seeks segments, niches and product categories that – by virtue of the Group’s market insights, core capabilities and offering of advanced products and solutions – provide market leadership. In this manner, long-term shareholder value and added value are generated for customers.

Trelleborg works with the strategy, both Group-wide and in the business areas, supported by four strategic cornerstones that – individually and in combination – underpin the strategy.

The strategic cornerstones

Geographic balance
In recent years, Trelleborg has prioritized strengthening its market presence in selected markets outside Western Europe and North America to further improve the geographic balance. 

The principal drivers include proximity to customers in expanding and profitable segments, following them in their globalization processes and developing local customer relationships, which may become global. Trelleborg’s long-term ambition is to achieve a geographic balance, where Western Europe and the Rest of the World each account for an expected 40 percent of the Group’s sales, while the remaining share is expected to continue being generated in North America.

Portfolio optimization
Trelleborg is driven by an interaction between organic and acquired growth. The Group pursues focused daily activities involving a number of growth initiatives at different levels and in different areas. The rate of investment is high as is the pace of development for new products and solutions. This could be upgrades or investments in new facilities and the launch of new solutions or business models. The portfolio is being continuously reviewed to assess how the Group can continue to improve its positions in the selected segments.

To establish operations at a faster pace or to strengthen the positions in selected segments, niches or product segments, Trelleborg also carries out bolt-on acquisitions. Divestments also form part of the optimization of the portfolio.

Structural improvements
The globalization of Trelleborg’s business involves being in the right location with the right operations. The focus is on developing operations and localizing them to areas where Trelleborg can grow and recruit the right talent and where the job can be done optimally. In certain cases, this means that Trelleborg moves an operation to another geographic market; in other cases, it means upgrading and developing the operation where it is.

Trelleborg works proactively and systematically to further optimize the core processes: purchasing, production and sales where the supply chain, Supply Chain Excellence, will from 2018 run as a common thread through all programs. 

The long-term aim of the Excellence programs is to boost value generation for Trelleborg’s customers through systematic work with tools, training, exchange of experience and other improvement activities at all units.