OPERATING area TELECOM
Strong trend in the first six months of 2017, followed by a return to more normal demand levels. The price pressure in telecom remains strong. To counter this, productivity improvements are being made and new, cheaper cable concepts are being launched.
- Expansion of the 4G mobile standard in China and India resulted in a strong volume increase during the first half of the year.
- Continued price pressure, mainly through Chinese cable manufacturers, is having a negative impact on margins.
- Productivity improvements were implemented in China, including an increase in the speed of production.
- Continued manufacturing of Flexiform MLF, which was specially developed to more effectively respond to price competition.
- Sales totaled MSEK 337 (282).
Telecom’s customers are antenna manufacturers in mobile telecom, an area in which Habia is the global market leader. Telecom conducts its own sales in its largest markets and is able to meet all customer demands thanks to its broad range. Price pressure has gradually increased and had a negative impact on margins, mainly as a result of Chinese low-cost manufacturers that offer products of lower quality. Habia is addressing this trend by marketing itself as a quality supplier and developing new products that can compete more effectively on price.
Compared with the competition, Habia’s unique, proprietary products offer higher performance at a lower cost. Quality, innovation and a broad product range are other competitive advantages. Another strength is Habia’s profile-extruded version of Flexiform. Among other features, this telecom cable boasts superior damping and thus helps to increase the range of base-station antennas.
Habia’s telecom cables are primarily used in radio base-station antennas. The largest product is Flexiform, which is available in many variations and accounts for more than 90 percent of sales. New, improved products are launched regularly in order to meet changing technical, environmental and cost requirements. One example of this is Flexiform MLF, which was developed to address price competition. All manufacturing and product development is concentrated to China, where capacity has been expanded in recent years.
OPERATING area Other Industry
Lower revenues and earnings in 2017 due to reduced invoicing in nuclear power and local production disruptions. Habia is implementing productivity improvements and cost adaptations to increase profitability.
- Strong industrial economy in Europe. Positive trend also noted in Asia toward the end of the year.
- Growing demand in the defense markets in Europe and Asia.
- Recovery in offshore, where Habia has developed new products that are ready for launch.
- Sales totaled MSEK 472 (505).
Habia develops and sells cables and cable harnesses that are often adapted to specific customer requirements. Many of its products are used in demanding environments, where they are exposed to everything from large temperature differences to extensive bending, fluids and radiation. To handle this, the products are manufactured in robust, high-performance materials. Sales are conducted in approximately 30 countries and are targeted at end customers in nuclear power, defense, offshore and other industries. Its main markets are Germany, France, the UK, the Netherlands, South Korea and the Scandinavian countries. Habia has local sales offices in every major market.
Innovative ability and technical expertise are competitive advantages that result in customer-driven development of cables and cable harnesses. The products are customized by designers at the plants and by the sales companies. In Sweden, there is a shared development department with expertise in materials, electrical properties in cables and cable design. Development and customization of cable harnesses and connection technology is conducted at the plant in Poland. Many of the products are manufactured in small volumes for specific customer orders. Accordingly, the company’s flexible production process is also a strength. Other competitive advantages include short lead times and the ability to deliver cable products to customers worldwide.
Habia manufactures industrial cables in Sweden, Germany and China as well as cable harnesses in Poland. Signal and control cables are the most common products and are often used in measuring equipment and various types of control and regulation technology. Habia’s cables and cable harnesses are also used in, for example, military applications, electric hand tools, gas turbines and marine diesel engines. In recent years, major investments have been made in product development for offshore.