Annual report 2011 - Trelleborg

INCREASED
GLOBAL PRESENCE
+11%
North America
+48%
South and
Central America
Focus on growth outside
Western Europe and North
America
Over the past fi ve years, a prioritized
growth objective for Trelleborg has been
to increase market coverage in highgrowth
countries outside Western Europe
and North America. The principal drivers
include proximity to customers in expanding
and profi table segments, following
customers in their globalization process
and developing local customer
relationships. Since 2006, Trelleborg
has divested, moved or closed some 30
production units in North America and
Western Europe. In parallel, the Group
has established or substantially upgraded
some 15 units outside these regions.
Sales have also undergone globalization.
Western Europe’s share of total sales
has declined from 63 percent to 54
percent, due primarily to a shift toward
Asia. Within a fi ve-year period, the aim
is to achieve a balance between Western
Europe and high-growth countries of
40 percent each, with North America
accounting for the remaining stable
portion.
Increasing number of local
customers in China
In China, net sales have grown by 242
percent over the past fi ve years to nearly
SEK 1,100 M and the number of employees
from about 550 to about 1,500
today. Trelleborg has seven production
units established in the country. During
the year, Trelleborg Sealing Solutions
GRI: 2.7, 2.8
+2%
Western
Europe +66%
Rest of Europe
invested in production of seals for the
medical sector and Trelleborg Wheels
System acquired a plant for specialty
tires. Trelleborg Automotive established
a technology center in Shanghai. The
Chinese automotive industry is expected
to grow signifi cantly in 2012. From being
focused on global companies, the Group’s
customer base is widening to include an
ever-increasing number of local Chinese
companies. In 2011, organic growth was
15.8 percent, which was higher than the
2010 fi gure for underlying industrial
market growth* of 13.9 percent. Trelleborg
continues to expand in China with
focus on organic growth and increased
production capacity, in combination with
potential acqusitions.
Strong growth in India
In India, net sales have increased by
249 percent to SEK 493 M since 2006
and the number of employees from
about 400 to just over 800. Trelleborg
Automotive has long-established operations
for global and local customers in
the country. During the year, both Trelleborg
Engineered Systems and Trelleborg
Sealing Solutions invested in production
facilities and centers of excellence, and
started up new plants. The country will
be the focus of investments in Trelleborg’s
marine fender operations, which
can make a positive contribution to the
future renewal and build out of harbors
in India and across the world. Organic
growth was strong in 2011 compared
with 2010 and amounted to 30.8 percent,
which far exceeds the underlying
industrial market growth* of 3.6 percent.
The Trelleborg Group’s
geographic trend in net
sales from 2006-2011.
+116%
Asia and other
markets
India’s future structural changes in the
form of population growth, industrial
development and demand for better and
more extensive infrastructure make it
one of Trelleborg’s prioritized high-growth
markets.
Larger investments
in Brazil
Trelleborg’s operations are being broadened
in Brazil. Net sales increased 49
percent to slightly more than SEK 1,200 M
over fi ve years and the number of
employees from about 900 to approximately
1,000. During the year, Trelleborg
Engineered Systems supplemented its
already established production activities
with the acquisition of a new offshore oil
& gas operation and invested in production
of printing blankets. Over the fi rst
six months of 2012, these investments
will positively impact future production
capacity and effi ciency. Meanwhile, an
operation that did not form part of
Trelleborg’s core operation was divested,
thus negatively impacting net sales for
the year. Organic growth for 2011 was
2.6 percent, which was signifi cantly
higher than industrial market growth of
0.3 percent* recorded in 2010. Trelleborg
has major growth ambitions in Brazil.
The country is rapidly becoming an
increasingly important market for
Trelleborg and the focused investments
in the country will continue.
*Goldman Sachs, February 2012
OUR MARKET
Annual Report 2011 Trelleborg AB
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