OPERATING area Chassis Springs
- Favorable growth in most markets, such as Russia, Eastern Europe and the UK.
- Lesjöfors defended its strong market positions and further developed its sales.
- Continued consolidation among customers, which impacted pricing and margins as well as intensifying the demands on product range development and high delivery capacity.
- New investments in the plant in Cornwall in the UK, which is expanding its manufacturing capacity by about 50 percent.
- Investments in gas spring manufacturing in Latvia, including expanded painting capacity.
- Sales amounted to MSEK 761 (675).
Lesjöfors manufactures and sells chassis springs in the aftermarket for cars and light trucks. Its products are included in vehicle suspension systems, which contribute to safety and driving properties. Some ten customers dominate sales to spare parts distributors in Europe, where Lesjöfors has long been the largest supplier. The main markets are the UK, Germany, Russia, Sweden and the other Scandinavian countries, which account for approximately 80 percent of sales. Lesjöfors also sells and distributes chassis springs in the US market. In addition to springs for Asian and European cars, an adapted range for US cars is also available.
The company’s strongest competitive advantages are its broad range and high level of service. Its products are delivered to customers across Europe within 24 hours. The company’s delivery precision is very high, surpassing 97 percent in 2018. Lesjöfors is a comprehensive supplier, providing everything from design and production to inventory management, distribution and service. This comprehensive offering allows the company to maintain its marketleading range. The company’s springs are manufactured in Sweden, the UK and Latvia. Together with regional distribution centers in the four largest markets, this ensures high quality and availability, short lead times and low distribution costs.
The company’s complete range comprises replacement springs for European and Asian cars and light trucks. Apart from chassis springs, the range also includes sport spring kits, leaf springs and gas springs. Through distribution centers, customers have access to more than 1.6 million chassis springs in 5,500 models. The range is expanded to include 300 to 500 new products each year.
OPERATING area Industry
- Strong growth in most markets in Europe and Asia, including heavy vehicles and automation solutions for industry.
- Weaker sales in Germany during the second half of the year, mainly due to the cautious trend in the German automotive industry.
- In other markets, Lesjöfors grew through the development of existing customer collaborations and through new business.
- The proportion of new business was highest in Asia, where a strong infrastructure has now been built up, largely through John While Group, which was acquired in 2016.
- Strengthened internation production and marketing in power springs, partly due to the products now also being manufactured in Latvia and partly through new customer collaborations in China.
- Decision to invest in a new plant in Latvia that will be commissioned during 2020.
- Sales totaled MSEK 1,864 (1,677).
As one of the world’s largest producers of industrial springs, Lesjöfors develops and manufactures products for most technical applications and industries. The company is one few international players that regularly conducts acquisitions and thus contributes to the consolidation of the industrial spring market. Lesjöfors has approximately 13,000 customers in 60 markets, with the main markets being Sweden and the other Scandinavian countries, Germany, the UK, China and North America. About 80 percent of sales are conducted outside Sweden. Lesjöfors has manufacturing operations in low-cost countries in Asia and Eastern Europe. This allows European customers with operations in Asia to receive a local supply of springs, wire and flat strip components.
Lesjöfors is a technical service company with 28 plants in 12 countries. Its spring expertise and ability to solve technical problems are strong competitive advantages. The majority of all products manufactured are customized. Accordingly, the company’s understanding of various customer needs – and its expertise in design, development and manufacturing – are key strengths. Lesjöfors works on production, delivery and support in a decentralized and small-scale manner close to the customer. This prepares the way for cost-efficient production, in which everyone from technical sales staff to machine operators cooperate to develop the right solutions for the customer.
The range has a unique breadth and is characterized by sustainability, adaptability and the possibility of a multitude of variations. In addition to customized products, Lesjöfors offers a proprietary standard range. The main market for these products is the Nordic region. The range comprises about 10,000 items, which are delivered rapidly and with a high level of reliability.