ETX-10829_Etex-AR2017_WEB_2018_DEF2 (2)

1.3
About Etex
Our three-pillar agenda
Etex Annual Report 2017
About Etex
Our three-pillar agenda
Profitable
growth
Operational
excellence
Capitalising on the global structure
introduced in 2016, our divisions target
well-defined business segments to
capture growth pockets and meet
specific challenges.
In 2017, we integrated our Latin America
business into this structure. Consequently,
we sold Chilean brick company Industrias
Princesa, whose activities fall outside our
core business.
From producing building materials
to providing building solutions
To grow our business, we have an
expanding merger and acquisition radar
in place. In 2017, this was evident in our
acquisition of Spanish plasterboard
company Pladur.
Furthermore, thanks to increased market
intimacy, we aim to bring value-driven
propositions to market. Our joint venture
with Chilean composite wood panel
producer Arauco is a significant first step in
this direction. We also launched affordable
housing initiatives in Nigeria and Peru.
An innovation-forward approach
In 2017, our innovation and technical
expertise increased margins slightly more
than associated overheads. We also
developed a substantial pipeline of new
products and solutions.
A complete review of our innovation
processes and metrics enables our three
Innovation and Technology Centres (ITCs)
to collaborate more closely without
boundaries. The ITC organisations also
ensure that innovation activities are
developed alongside the business.
To maintain close relationships with
customers, these centres host open
innovation days. Customers visit our
centres, see and test new products and give
their all-important feedback. This ensures
we remain competitive and that our efforts
target market and customer needs.
Streamlined footprint
Increasing productivity and improving
existing equipment and machinery at
our plants is crucial. Prior investments
made in 2015 and 2016 supported growth
throughout 2017 without exceptional
capital expenditure. In addition, enhanced
communication and collaboration between
our engineering, operations and purchasing
organisations has led to more effective
project management in terms of timing,
cost and deliverables.
Furthermore, our new Cedral line for
fibre cement siding in Lithuania is fully
operational. We also made smaller,
targeted investments, building capacity to
meet market needs more quickly. In total,
11 major projects will come online in 2018.
In Germany, we reassessed and
consolidated our production footprint.
We closed our facility in Heidelberg.
We also sold our clay façade panel
factory in Weroth, which is outside our
portfolio scope.
Buy for best value
The integrated purchasing organisation set
up in 2016 paid off in 2017. Harnessing the
group’s purchasing power, we continue to
take advantage of the many opportunities
to increase overall cost savings across the
business to deliver benefits to all our local
companies. We will continue to build upon
this approach in 2018 as we seek not just
to buy better, but also to spend smarter in
terms of total cost of ownership.
Enhanced shared services
As they are further integrated across our
activities, our shared services centres
continue to enhance transactional support
to the business. By introducing more
automated and end-to-end processes,
these centres are on course to further
reduce costs, engage teams and improve
customer satisfaction.
BIM for better buildings
We made headway integrating Building
Information Management (BIM) technology
into our projects. Using BIM helps boost
demand for our products, increase
efficiency and promote collaboration with
customers. We aim to become an industry
leader in using this digital tool.
PPOur industrial facilities are always striving
to do more with less. We continue to invest in
increasing productivity and improving existing
equipment and machinery at our plants.
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