Lesjöfors AB

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Lesjöfors is a global manufacturer of springs, wire and flat strip 
components. Its comprehensive range includes both standard products and customized components.

Lesjöfors is the largest spring company in the Nordic region and a leader in Europe. Its technical sales and service are strong competitive advantages, as are its low-cost manufacturing and worldwide delivery capacity. The operations are divided into two business areas: Industry and Chassis Springs.

  • Within Chassis Springs, Lesjöfors is the market leader in Europe and an inventory-maintaining manufacturer that offers a comprehensive product range.
  • Dominated by customer-specific products, Industry conducts sales in 60 markets.
  • Lesjöfors has 26 production units in 12 countries. More than 80 percent of sales are conducted outside Sweden.

“Double growth generates record result for Lesjöfors”
lindback vd lesjofors satsyta
How would you summarize the developments over the year?

2017 turned out better than expected. For example, this was the first time in several years that we had organic growth in Industrial Springs. As a result, many plants worked at full capacity and we were generally able to handle the growth well. What was unique about 2017 was the strong growth experienced by both Industrial Springs and Chassis Springs. It was a record year for Chassis Springs, with a sales increase of about 30 percent compared with 2016. This generated excellent earnings for Lesjöfors overall.

You previously carried out acquisitions and expanded in Asia. How have these businesses developed?

We created a platform with operations in China, Singapore and Thailand. This gives us a spread of knowledge that enables us to offer new opportunities to customers with operations in both Europe and Asia. We can deliver to these customers regardless of their location, and this has proven to be a winning concept. We have breadth and can also continue to expand our business organically.

As you mentioned, sales in Industrial Springs are improving again. 
What is this due to?

The economy has improved and we are experiencing growth like we haven’t seen since before the 2008/2009 financial crisis. This trend is clear in many different industries, including construction and civil engineering, automotive and automation as well as mining and offshore. Offshore has been stagnant for a long time, but in 2017, the change was clear. To meet demand, we are constantly developing our operations. Take Slovakia, for example, where we have expanded the plant and made new investments in machinery.

Your goal was to leverage more synergies and cross-selling. What progress was made in 2017?

When we acquired our US business in 2014, we also bought a new technology area in the form of motor springs. Our plan was to bring these products to our customers in Asia and Europe, and we have made good progress in this area. For example, we have transferred technology from the US and built up production capacity in Latvia. As a result, we are now able to offer local production of motor springs for the European market.

What will be the company’s main focus in 2018?

Not anything new, but achieving more of the same, meaning further developing the platforms we already have. We will also make a number of organizational changes to enhance the efficiency of our work by utilizing synergies and capitalizing on economies of scale between areas of technology and geographic markets.