World market leadership and profitable growth

International technology Group ANDRITZ ranks among the global market leaders in all five of its business areas. One of the Group’s overall strategic goals is to consolidate and extend this position. At the same time, long-term profitable growth should be secured.

ANDRITZ has the following strategic goals:

1. Take opportunities in growth markets

All five ANDRITZ business areas serve markets with long-term and sustained growth. Within these markets, the Group focuses on rapidly growing segments, such as technologies for energy generation from renewable resources (e.g. hydropower and biomass), as well as stainless steel or special paper grades (e.g. tissue). In terms of global regions, this means consolidating and extending the company’s current strong position in Europe and North America, as well as taking the opportunities available in the emerging growth markets, particularly in South America and Asia.

2. Extend global customer proximity

ANDRITZ serves globally acting companies all over the world. In order to meet customers’ needs as best and as quickly as possible, ANDRITZ has a global presence with more than 180 locations. The Group’s goal is to further strengthen local service presence close to customers, particularly in order to help them achieve their objectives in terms of productivity, profitability, and sustainability.

3. Long-term growth

ANDRITZ has the goal to increase sales in the long-term by organic expansion and acquisitions:

• Organic expansion, mainly through research and development: ANDRITZ is among the technological leaders in all five of its business areas and invests strongly in research and development. On average, approximately 3% of sales are invested in research and development every year, and over 300 employees work in the Group’s research centers. Research and development activities focus on making ANDRITZ the technologically preferred supplier. Thus, the main priority is to develop customized technologies that enhance the productivity of customer’s plants, minimize operating costs, and maximize energy efficiency and environmental protection.
• ANDRITZ is always on the lookout for opportunities to acquire businesses that complement and expand its existing range of products, process technologies, and services. The goal is to be a single-source supplier with full-line capabilities in all business areas.

4. Profitability (EBITA margin) of 7%

ANDRITZ has the goal of achieving profitability (EBITA margin) of 7% on average over the economic cycle.

5. 50% of sales from renewable energies

ANDRITZ’s long-term goal is to generate more than 50% of its sales from products related to renewable energies. The Group has an extensive portfolio of equipment and process technologies used to produce energy from sustainable resources:

• Electromechanical equipment for hydropower stations (particularly turbines and generators)
• Plants for generating energy from biomass, e.g. biomass boilers for the pulp and paper industry or plants for drying and pelleting of biomass
• Plants for production of liquid biofuel, such as biodiesel or bioethanol (second generation)
• Plants for converting waste products into energy sources (waste-to-power)