Strategy & goals
For many years, the ANDRITZ GROUP has been pursuing a business strategy aimed at achieving profitable growth in the long term. ANDRITZ’s long-term goal is to obtain annual sales growth averaging five to eight percent and to increase profitability (EBITA margin) to eight percent in the medium term.
The main cornerstones of this strategy are: creation of internal and external growth, technological and cost leadership, and global presence.
In order to achieve the long-term sales growth target averaging five to eight percent annually, ANDRITZ continues to focus on organic growth and the acquisition of companies – just as in previous years. ANDRITZ invests around three percent of sales every year, including order-related work, in research and development of new products, with special focus here on IIoT (Industrial Internet of Things).
By offering smart technologies that create added value, ANDRITZ not only helps its customers to achieve their business goals as best possible, but also opens up new sales and growth opportunities in its business areas. Complementary acquisitions, i.e. purchase of companies with complementary products/technologies will continue to be an important cornerstone of ANDRITZ’s growth strategy. By integrating these companies into the Group, ANDRITZ not only creates important synergies, but also paves the way for these companies to achieve organic growth. The Group’s overall goal is to become a full-service provider with global presence in all business areas by developing its own products and acquiring other companies.
Technological and cost leadership
The ANDRITZ GROUP is one of the leading global suppliers in all of its business areas. In order to consolidate and further extend this position, it is essential for ANDRITZ to be the preferred technology supplier while still retaining a competitive cost structure. Thus, the ultimate goal is to offer customers cutting-edge technologies that help them to achieve their goals in terms of productivity, quality, resource and energy efficiency, and sustainability. At the same time, it is necessary to create a cost structure within the Group that secures ANDRITZ’s competitive position and continued existence in the long term. The main cornerstones here are ongoing cost optimizations and a manufacturing and location concept aligned to future market opportunities that take account of regional cost and competitive advantages.
The ANDRITZ GROUP’s goal is to increase profitability and achieve an EBITA margin of eight percent in the medium term. In addition to the cost leadership targeted, this goal is to be achieved by means of planned sales growth and substantial expansion of service business from the current level of 34 percent to 40 percent in the long term.
With a balanced mix of global and local presence, ANDRITZ can support its customers in achieving their goals in terms of productivity, profitability, and sustainability. It is thus one of the ANDRITZ GROUP’s main goals to continue extending its worldwide presence in order to utilize growth potential on the one hand, particularly in the emerging economies of South America and Asia, and on the other hand to be close to its customers in order to be able to offer the best possible service. Due to the planned further relocation of manufacturing capacities to emerging markets, ANDRITZ can profit from growth in these regions, but also be a strong impetus for economic growth and the labor market there.