Habia Cable AB
Habia Cable set a new record for invoicing and earnings in 2014 – mainly as a result of a sharp increase in order bookings within mobile telecom, as well as stronger demand from both the nuclear power and industrial markets in Asia and Europe.
Habia Cable develops, markets and manufactures customized cables and cable harnesses for demanding, high-tech applications. Many of its products are used in harsh environments with rigorous performance requirements, such as nuclear power plants, military technology and advanced industrial components. Its products are made from durable, high-performance materials that are able to withstand, for example, extremely high or low temperatures, radioactivity, pressure and vibrations.
Operations conducted based on customer-specific requirements
The company’s operations are conducted in two business areas: Telecom and Other Industry. Other Industry comprises nuclear power, defense and other industrial segments, such as transport, engineering, offshore and manufacturing.
A large share of the company’s development work is customer driven, particularly in the industrial and defense segments, where many products are designed to meet customer-specific requirements. Telecom cables, Habia’s largest product area, are relatively standardized.
Extensive know-how from design to production
Habia has a high level of technological and application know-how in all areas from design to production. Other competitive advantages include:
- High quality.
- Customized products.
- High-performance materials and coupling solutions.
- Flexible production and logistics.
Flexible production and logistics
Habia has production facilities in Sweden, China, Germany and Poland. A high level of production flexibility is required since the company’s main focus is on custom-designed cables. The telecom sector also imposes strict requirements in terms of short lead times and rapid adaptation. Habia’s four plants ensure the company’s global production and delivery capacity, thereby meeting the needs of both multinational and local customers.
Via its production facility in China, Habia is able to deliver locally manufactured products to the Chinese market, as well as offering cost-efficient production of large volumes for the global market. In 2014, the capacity of the facility was expanded to meet demand in the telecom sector. As of 2015, the production of telecom cables will be relocated to the plant in China, making it Habia’s largest production facility. In 2014, floor space was added to the plant in Poland to create more room for new production equipment and enable future growth.
Product development – customer-driven work
Product development is largely customer driven. This work focuses on finding the right combination of materials, designs and manufacturing processes to meet technical and commercial requirements. Some development projects in, for example, the offshore and defense segments are fully or partly financed by customers. The company’s development work also focuses on identifying and adapting better or more cost-efficient materials, primarily plastics.
Another equally important task is to improve the company’s manufacturing processes in order to increase capacity, cut costs or reduce scrapping. Product development also involves ensuring that the company’s cables meet various norms and industry standards. This applies primarily to the defense and nuclear power segments, as well as certain industrial markets with rigorous technical requirements that vary between countries.
Quality – distinct quality profile
In the international cable market, Habia is known as a quality company with stable, reliable and high-performance products. This focus on quality encompasses the entire chain – from design, development and manufacturing to delivery. Product quality is assessed regularly, and 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 and many of its products meet the quality requirements of industry standards such as Underwriters Laboratories and Det Norske Veritas (DNV). A number of customers conduct regular audits of the quality systems in place at Habia’s plants.
Performance in 2014
- Invoicing amounted to MSEK 790 (624). Operating profit totaled MSEK 93.6 (53.2) and the company’s operating margin was 11.8 percent (8.5).
- Highly favorable demand from the telecom sector throughout the year. Sales of cables for base-station antennas rose 56 percent, mainly due to the continued global expansion of the 4G network. In response to this trend, Habia has expanded its production capacity in China.
- The performance of the nuclear power market also benefitted Habia, which increased its deliveries of signal and control cables to customers in Asia and Europe.
- Demand in the defense segment was in line with the preceding year, while industrial cable displayed growth in most markets. Demand in the German market increased early in the year, resulting in larger volumes in other European markets and China.
- Invoicing amounted to MSEK 358 in Telecom and MSEK 432 in Other Industry.