Annual report 2011 - Trelleborg

OUR MARKET
CUSTOMERS IN SEGMENTS
WITH PROFITABLE GROWTH
About 90 percent of Trelleborg’s sales take place in the industrial rubber market, with
agricultural and industrial tires accounting for the remaining share. The industrial
rubber market is highly diversifi ed and is valued at about EUR 60 billion per year.
Total demand is growing at the same rate as global GDP .
Trelleborg has chosen to focus its operations
on segments in high-growth industrial
sectors in which the Group has the
best competitive conditions to achieve
favorable profi tability. In its principal segments,
Trelleborg continuously endeavors
to attain leading posi tions in global,
regional and local markets. The strategy
is to be among the top three companies
in terms of market shares. This enables
the Group’s four business areas to be
active in the same sub-sectors and
seg ments, thus facilitating synergies in
terms of knowledge, product development,
purchasing, production, distribution and
marketing.
Trelleborg’s partnership with industrial
customers, in particular, ensures that the
Group’s devel opment tracks global industrial
business activity. Business logic and
demand cycles vary for Trelleborg’s
current segments. The sub-segments of
20 Annual Report 2011 Trelleborg AB
Trelleborg Trelleborg Trelleborg Trelleborg
Engineered Sealing Wheel Automotive
Systems Solutions Systems
capital-intensive industry, such as energy
and infrastructure, have a higher share
of project deliveries with long lead times,
while the transportation industry, for
example, procures products in shorter
cycles. Trelleborg’s positioning is based
on the high and innovative technology
content of its products, providing solutions
with added value for customers, and on
its degree of service to and knowledge
of the customer. This provides customers
with a sense of security when selecting
a supplier.
New segments
In line with future global trends, Trelleborg
actively seeks to position itself in segments
with favorable growth and profi tability
potential. Life science, pharmaceuticals,
food and biotechnology are
examples of large sectors in society
where demand is forecast to grow in
Main segments in which Trelleborg is active
pace with a rising population, a growing
percentage of elderly and higher welfare
demands.
Regional and global
market leadership
Trelleborg endeavors to attain market
leadership in several dimensions: innovation
and applications development,
market coverage within product sectors,
niches and segments, and geographic
markets. Market leadership offers significant
competitive advantages in terms of
revenues and costs. From its existing
customer base in Western Europe and
the US, Trelleborg has expanded robustly
in the emerging markets of Asia and
South America in the past fi ve years.
Trelleborg is among the top three largest
manufacturers, globally or regionally, in a
series of product categories.
Segment Share of the Group’s
sales in 2011, %
GRI: 2.2