Lesjöfors is resilient despite turbulence in the world
Major world crisis affect us all in one way or another, this also applies to Lesjöfors' operations for obvious reasons. Despite the pandemic and current state of war, we are still well equipped to continue our growth journey. Ola Tengroth, CEO of the Lesjöfors group, gives his view on the market situation.
All-time high despite the pandemic
The companies in our group have handled the effects of the corona crisis in a very responsive and adaptive way. Despite major challenges, we were able to deliver our best result ever last year, with a good margin. Restrictions made it difficult to plan workforce in the production and it affected supply chains of materials and components. However, we have managed to maintain a high and secure level in our operations and delivery precision, which I am extremely happy and proud of.
The Russian aggression brings challenges
We entered 2022 with wind in our sails and the beginning of the year started in an excellent way. Just as we saw the light at the end of the pandemic tunnel, new challenges arised as a consequence of Russia's aggression towards Ukraine. As a result, we have paused all operations in Russia. Our sales to Ukraine have almost come to a complete halt, but we can handle occasional deliveries even under the current circumstances, which in several respects are very positive.
Unfortunately, we see a challenging situation ahead of us for the second quarter of 2022 in terms of material supply and increased cost. It is difficult at present to predict what this will bring in the longer run but we will make sure to communicate any changes with you.
Focus areas take Lesjöfors into the future
We are taking determined steps in the development journey of the Lesjöfors Group, mainly in the three focus areas for updating Lesjöfors to tomorrow’s needs: sustainability, digitalisation and strategic HR. An important action in accelerating the sustainability work in the Group is the employment of Anna Haesert as the newly established management position as Head of Sustainability. She will increase both expertise and the implementation of necessary initiatives. We have also started and implemented several interesting digitisation projects with more to come.
Our growth journey continues
In addition to steady organic growth in our companies, we are active with global acquisitions of niched companies in our field. Our latest addition to the group, the American company Plymouth Springs in Bristol, Connecticut, has started 2022 in a very good way. In parallel, we are examining several other interesting prospects and are actively looking for competitive companies to acquire. We will keep you posted about the matter during the year.
In summary, we have a positive view on the future, but take the clouds of unrest on the horizon very seriously.
Sofia Håkansson
Marketing and Communications Director
+46 54 13 77 56
sofia.hakansson@lesjoforsab.com
The Lesjöfors Group provides the widest range of springs and pressings to customers in diverse industries across the world. With a unique expertise in high technological, custom-made solutions and a flexible manufacturing capacity, Lesjöfors is the premier partner for all spring requirements. Lesjöfors, owned by Beijer Alma a listed company on the Stockholm Stock Exchange, comprises about 40 manufacturing and sales companies in many countries. As a long-term and committed spring innovator, the Group continuously grows with a good profitability, both organically and by acquisitions.
