Habia Cable AB
Habia Cable develops, manufactures and sells custom-designed cables and cable systems for demanding applications. The company is one of the largest manufacturers of custom-designed cables in Europe.
Habia Cable operates in two business areas: Telecom and Other Industry. Its products are sold in approximately 50 markets. The President of the company is Carl Modigh, born in 1972, Degree in Engineering and Executive Master of Business Administration, employee since 2006.
Unique products – high degree of customization
Habia Cable develops, manufactures and sells custom-designed cables and cable harnesses. The company is the leading player in Europe in these areas. Its products are used in demanding, high-tech applications in harsh environments. Many cables have unique properties and are made from high- performance materials that are able to withstand, for example, extremely high or low temperatures, radioactivity, pressure, fire, bending or vibrations.
Two business areas: Telecom and Other Industry
Habia has two business areas: Telecom and Other Industry. The cables in the Telecom business area are mainly used in base-station antennas for mobile telecom. These products are relatively standardized. In Other Industry, most cables are adapted to meet specific customer needs and are delivered, for example to the nuclear power, defense, transport, offshore and manufacturing industries.
Large production operation in China
Habia conducts manufacturing operations in China, Sweden, Germany and Poland. The facility in China is now the largest in the company. During 2015, the production of telecom cables was concentrated to this plant, allowing the company to boost its competitiveness in a market segment with increasing price pressure, particularly from manufacturers in Asia.
In Sweden, manufacturing focuses on customized cables, including cables for the nuclear power market, where demand increased sharply during the year. The German plant manufactures equipment wire and cables, while the facility in Poland focuses on cable harnesses. The manufacturing volume within cable harnesses also increased sharply in 2015. This positive trend created opportunities for new investments and a continued expansion of the operations. In Germany, additional undeveloped land was purchased next to the plant. This will ultimately enable an expansion of this facility as well.
Local and global product and quality development
Habia conducts proprietary, group-wide product development, as well as local development at each plant. Some projects are fully or partly financed by customers, for example, in the offshore and defense segments. Group-wide development focuses on casing and insulating materials – for example, finding suitable polymers and using the right additives to ensure the performance of cables in demanding environments. Local development focuses on designing customized cables and cable harnesses. Each plant has specialists who support the development of the types of cables manufactured at the individual facility.
Focus on quality throughout the production chain
In line with this approach, product development for the telecom operations has been relocated to China, where all manufacturing now takes place. In Sweden, Habia has developed products for the offshore market that expanded its offering in the nuclear power segment. In Poland, techniques are being developed for casting connectors.
This focus on quality encompasses the entire production chain – from design, development and manufacturing to delivery. The company’s product-quality order fulfillment rate has remained steady at 99 percent without complaint for many years. All of Habia’s plants have been awarded ISO 9001 quality certification. Many products meet the quality requirements of industry standards and hold third-party certification from, for example, Det Norske Veritas (DNV) or Underwriters Laboratories. During 2015, the company’s offshore cables were certified according to the NEK 606 industry standard. The facility in Poland was certified according to the ISO 14001 environmental standard.
Performance in 2015
- Invoicing amounted to MSEK 765 (790). Operating profit totaled MSEK 99 (94) and the company’s operating margin was 12.9 percent (11.8).
- Weaker performance in Telecom compared with the preceding year, which was exceptionally strong. Nevertheless, Habia achieved its second-strongest sales volume to date in this area in 2015.
- Sharp increase in order bookings and invoicing in nuclear power, primarily in Asia and the Middle East. Weaker demand from industrial customers in Europe. Strong performance in cable harnesses for defense customers, where Habia captured market shares.
- Invoicing amounted to MSEK 297 in Telecom and MSEK 468 in Other Industry.