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INTERVIEW WITH THE PRESIDENT AND CEO PETER NILSSON
We continue to
view Asia positively
as well as developments
in China.”
However, the completion of the acquisition
of CGS Holding entails an increase in
Trelleborg’s comparative European sales.
Did you not intend to reduce the share of
European sales? CGS Holding has about
58 percent of its sales in Europe.
Yes, it’s correct that we’re seeking
geographic regional balance. But CGS
has most of its sales in Eastern Europe,
which we view as a growth market.
Europe is – and will remain – a key
region for Trelleborg, and the acquisition
will make us stronger there. We feel that
this will strengthen the Group overall.
Purely in practical terms, how will you
integrate CGS Holding’s sizeable product
range and its 6,300 employees into
Trelleborg’s operations?
The Mitas subsidiary will be integrated
into the Trelleborg Wheel Systems business
area. During a transitional period,
other operations will be independent
from Trelleborg’s operations before being
subsequently integrated into the Group’s
current business areas.
When will you conduct a major Asian
acquisition, a region that you have long
said you wish to be bigger in?
We look continually at attractive potential
acquisitions, including those with a base
in Asia. We’ll return to this issue when it
proves relevant.
How do you view the progress of Trelleborg’s
geographic footprint in the future,
given that several emerging markets
have shown slower growth lately?
We prioritize growth in selected markets
outside Western Europe and North
America. Our long-term aim to reach
geographic balance remains intact. This
means that Western Europe will account
for some 40 percent of Trelleborg’s sales;
North America will continue to account for
about 20 percent; and the rest of the
world for the remaining 40 percent.
We continue to view Asia positively
as well as developments in China and
the Chinese market, for example. This is
an enormous domestic market and we
remain so small in China that we can
expand using our own momentum. We
now offer solutions for the Chinese
market that were previously absent from
the higher quality segments.
Trelleborg has a good reputation in
terms of sustainability issues and their
reporting. Where do you stand in regards
to this work, and how do your products
and solutions contribute to societal
sustainability?
We have deepened programs in our key
areas of corporate responsibility, such
as regulatory compliance, resource
management, diversity and, not least,
community involvement, for which we are
intensifying efforts in Sri Lanka and
Digital technology is
giving us enormous
growth potentioal and we
are investing heavily in
the develpment of our
digital offering.”
India. More details on these topics are
available in the Annual Report’s sustainability
section. But for the immediate
future, we are also preparing to become
more distinct in terms of how Trelleborg’s
solutions, apart from their basic
functions and customer value, can also
make the community as a whole more
sustainable – primarily because they
assist in conserving energy, and eliminating
noise and vibrations, while also
protecting and extending the lifetime of
key public infrastructure, such as
bridges and tunnels.
By the way, how is your corporate
university, Trelleborg Group University,
progressing?
Very well, thank you. Trelleborg Group
University was set up three years ago
and we’re now investing more than ever
in education. We have a very broad
offering, from basic training to advanced
management courses, in which a very
large proportion of personnel have
participated.
When, where and how do you see
technological development – including
the digitalization of products and processes
– gaining a solid breakthrough
in Trelleborg’s industrial markets?
Digital technology is giving us enormous
growth potential and we are investing
heavily in the development of our digital
offering to make life easier and increase
value for our customers. This involves
smart products with built-in sensors and
tracking systems, but we’re also continuing
to facilitate doing business with us
via online design programs and digital
channels, such as web-based and
mobile applications.
We continue our efforts to enhance
intrinsic product value, thus creating
added value in our customers’ operations.
As a result, Trelleborg’s business
is increasingly shifting from supplying
products to delivering services and
solutions. One example of this is our
new business concept, which is also a
service concept – our Interfit business
in industrial tire operations.
What will Trelleborg look like three
years ahead?
I expect sales and market development
to play a larger role in the strategic
management of the Group. This strategy
is intact, as are the strategic cornerstones.
When it come to our geographic
presence, our investments will be
focused on growing faster in high-growth
countries and selected segments. In
addition to prioritizing manufacturing and
sales, we aim to build up and develop
well-functioning structures and functions
in the places where we want grow.
Will you still be working at Trelleborg
three years from now?
I hope so. I really enjoy working at
Trelleborg. It offers fantastic coworkers,
attractive products and exciting markets
to explore. I am constantly faced with
new challenges and activities that could
be improved, and these are things I want
to continue to pursue.
Trelleborg, February 2016
4 Annual Report 2015 Trelleborg AB
GRI: G4-1