Group Strategy & Strategic Cornerstones - Trelleborg AB

Trelleborg’s strategy for leading positions

Trelleborg’s strategy of securing leading positions in selected segments is supported by four strategic cornerstones. These ensure that all levels within the Group maintain focus and conduct activities that are in line with the strategy. These are the cornerstones that Trelleborg works with Group-wide and in the business areas to optimize its respective operations and, thereby, capture market leadership. The cornerstones support the strategy individually and in combination.

Geographic balance
Enhanced geographical balance. China is on the way to becoming the largest global economy, and Africa is eventually expected to follow Asia as a high-growth region. In recent years, Trelleborg has prioritized strengthening its market presence in selected markets outside Western Europe and North America.

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 geographical 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.

However, the European and North American markets remain important for Trelleborg. The Group both acquires and invests in these geographical areas when this strengthens the Group overall.

Portfolio optimization
Improved business portfolio. The Group is pursuing focused systematic activities involving a number of growth initiatives on several levels and in different areas.

The business portfolio is being continuously reviewed to assess how the Group can continue to improve its positions in selected niches. The rate of investment is, therefore, high as is the pace of development for new products and solutions. Initiatives can be launched in several dimensions. They may, for example, concern the expansion into new closely-related segments, technologies or applications, or to new geographical areas.

Furthermore, Trelleborg acquires businesses in attractive niches where opportunities exist to achieve competitive advantages and a leading position. Operations may be divested and these are primarily activities that are, for various reasons, no longer seen as belonging to the core business or lack the necessary development potential.

Structural improvements
Adapted structures. 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 do the best job. In certain cases, this means that Trelleborg relocates an operation to another geographical market; in other cases, it means upgrading and developing the operation where it is.

However, it is also about developing offerings that make life easier and increase value for customers, and developing and working within new business models. Trelleborg therefore invests in new technology and machinery, human capital, international management, local managers and development of local markets, all with the aim of improving and improving its structure.

Excellence in core processes. Trelleborg conducts systematic internal work to further improve key processes, such as purchasing, manufacturing and sales, as well as issues concerning supply chain and people excellence.

Manufacturing Excellence is the oldest of these initiatives and has been running for more than ten years. The purpose of Manufacturing Excellence is to work systematically to improve production in relation to safety, quality, delivery precision and efficiency. The focus is on minimizing non-value-generating activities and identifying and correcting deviations through daily efficient control. The vision is Zero accidents, Zero defects, Zero delays and Zero waste. Health & safety and resource efficiency are integrated parts of Manufacturing Excellence.