Exel Composites launches transformative strategy to capture profitable growth with composite solutions driven by sustainability needs
EXEL COMPOSITES PLC – INSIDE INFORMATION – 2 OCTOBER 2023 at 09:00 EET
Exel Composites launches a new strategy to become a more integrated designer and manufacturer of pultruded composite solutions for volume and customer-specific applications. This transformation will enable Exel to grow and to create more long-term value for stakeholders. Exel will also reorganize its operations to improve performance and support growth. The actions to be taken will enable Exel to achieve over EUR 200 million in annual revenue and double digit adjusted operating profit margin within the next five years.
According to the new strategy, Exel will increase its efforts in large and fast-growing energy transition and decarbonization applications driven by sustainability needs. Increased focus will be placed on industries that have strong growth potential with more standardized and higher volume product needs, such as wind power, building, infrastructure and transportation.
To complement the growing volume applications business, Exel will further develop its successful custom profiles business. In this business Exel will continue to take advantage of its long R&D experience and strong product know-how to help customers innovate and integrate the use of the composites in existing and new applications. The custom profiles business will also function as an important channel to funnel new opportunities to the volume business when an application grows and demands higher manufacturing volumes.
To ensure increased customer-facing work and efficient operations, Exel will be organized into two dedicated customer-centric business units, one concentrating on volume and the other on custom solutions. Volume product customers Exel will serve with dedicated account management teams and from factories that are highly effective in running continuous production. Specialty and custom profile customers Exel will serve through its regional sales network and from a global network of factories optimized for tailored production. In both of these business units composites solutions design and development capabilities will be increased to ensure that customers can easily choose and use composites in their applications.
The factory footprint will be organized to support the needs of the new business units. In the new strategy, Exel will reassess its factory footprint and aim for larger production units which are scalable, more efficient, and better resourced. The redesigned factory footprint will offer customers the most appropriate production network, while allowing Exel to focus and scale up its operations as well as allowing investments in needed design and engineering capabilities. As part of the process to reassess the factory footprint, Exel is planning to start a strategic review in three factories to define their role and necessity in the new operating model. More details and decisions from the strategic review of the factory network will be announced as the planning proceeds.
The new operating model with two distinct business units will be implemented from the beginning of 2024.
“In our new strategy, we have identified several attractive, high potential growth industries, with paths for Exel to capture them. We believe that the use of composite solutions will increase in the future. This strengthens our trust in our purpose to solve challenges and save resources with composites. At the same time, we see that the industry is in transition. Customers are looking for different technical and commercial solutions. Exel needs to drive positive change through its own operations to prepare for future growth and to ensure it can satisfy the changing expectations of customers going forward. With our refocused strategy, emphasizing sustainability, efficiency, and close cooperation with customers, we can be an important partner to them in the journey to meet and exceed mutual targets,” says President and CEO Paul Sohlberg.
Invitation to press conference today at 13:00 EET
Exel invites investors, analysts and media to an event to be held online today on Monday 2 October 2023 at 13:00 EET to discuss today’s announcement. The event will be hosted by President and CEO Paul Sohlberg and CFO Mikko Rummukainen.
The event can be followed live via the link: Click here to join the meeting
The link will be also available on Exel’s website: investors.exelcomposites.com
A recording of the event will be available at investors.exelcomposites.com
Capital Markets Day
Exel will arrange a hybrid Capital Markets Day on 13 November 2023 in Helsinki to provide further details on strategy and to engage with the management.
For further information, please contact:
Sanna Ahvenniemi, Head of Investor Relations
tel. +358 40 864 3000
Exel Composites in brief
At Exel Composites, we use over 60 years’ experience to solve challenges and help customers save resources. Our forward-thinking composite solutions made with continuous manufacturing technologies serve customers in a wide range of industries around the world. You can find our products used in applications from wind power and transportation to building and infrastructure.
Our collaborative approach and global footprint set us apart from our competition. We use our expertise to help customers reduce weight, improve performance and energy efficiency and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally.
Headquartered in Finland, Exel Composites employs approximately 650 forward-thinking professionals around the world and is listed on Nasdaq Helsinki. To find out more about our offering and company please visit www.exelcomposites.com.
Exel Composites Plc