Business areas

OPERATING area Chassis Springs

lesjofors chassifjadrar

Record sales, with Lesjöfors growing and capturing market shares in Europe. At the same time, competition is intensifying in the spare parts market, resulting in price pressure. This is boosting demand for cost-efficient production, with automation becoming an increasingly important competitive tool.

Performance in 2017 – increased volumes
  • Healthy growth in essentially all markets.
  • With increased volumes in most markets, record-breaking sales were achieved.
  • Continued consolidation among customers.
  • Efficiency measures through automation and production balance across the high and low seasons.
  • Sales totaled MSEK 675 (533).
Customers and market – leading manufacturer

Lesjöfors sells chassis springs to spare parts companies and is the predominant supplier in Europe. Its largest markets are the UK, Germany, Russia, Sweden and the other Scandinavian countries, which account for approximately 80 percent of sales. Eastern Europe and Russia are among the world’s most expansive markets. About ten customers dominate the company’s sales. As a result of acquisitions, a gradual consolidation is taking place among customers, which could affect pricing and margins. For the past few years, Lesjöfors has been established in the US market, with a sales organization and logistics operations.

Competitive advantages – service and delivery precision

One of Lesjöfors’ strongest competitive advantages is its high service level. Customers have access to a comprehensive range of chassis springs and these products can be delivered throughout Europe within 24 hours with a very high level of delivery precision. Lesjöfors is a comprehensive supplier, working with everything from design and production to inventory management, distribution and service. Its products are manufactured at plants in Sweden, the UK and Latvia. Lesjöfors also has several regional logistics centers and sales organizations. This breadth ensures that the level of service is also maintained when there are large increases in demand, such as in 2017.

Offering – comprehensive range

Lesjöfors has the market’s broadest range of replacement springs for European and Asian cars and light trucks. The distribution centers in Sweden, Germany, the UK and Russia have more than 1.6 million chassis springs of 5,500 different models in stock. The range is expanded to include 300 to 500 new products each year. All chassis springs are made from high-quality spring steel, resulting in consistent high quality throughout the product range.

OPERATING area Industry

lesjofors industri

The strong industrial economy benefited Lesjöfors and resulted in organic growth of 8 percent. The demand for industrial springs was strong in many industries in Europe. In Asia, the 2016 acquisition of John While Group developed positively and strengthened the company’s position in this market.

Performance in 2017 – increase in organic growth
  • Strong organic growth in the main markets in Europe for the first time in several years.
  • Positive trend in Asia, where Lesjöfors built up strong platforms by way of acquisitions.
  • Continued investments to expand the company’s manufacturing capacity, including in Slovakia.
  • Focus on sales synergies in motor springs. Production established in Latvia.
  • Sales totaled MSEK 1,677 (1,476).
Customers and market – local product supply

The largest customer segments are automotive, engineering, agriculture, electronics, energy, and the construction and civil engineering sectors. The company’s main markets are Sweden and the other Scandinavian countries, Germany, the UK, China and North America. About 80 percent of sales are conducted outside Sweden. A growing number of companies are moving their production to low-cost countries in Asia and Eastern Europe. Lesjöfors also has production in these regions. This means that customers in Europe with operations in, for example, Asia, can be supplied with products locally.

Competitive advantages – working on a small scale

Lesjöfors is a technical service company with 26 plants in 12 countries. Its spring expertise and ability to resolve technical problems are strong competitive advantages. Nearly all its products are customized. Accordingly, an understanding of customer needs and competence in development and production are key strengths. Another strength is the company’s cost-efficient production, in which everyone from technical sales staff to machine operators cooperate to develop the right solutions. Lesjöfors works on production, delivery and support in a decentralized and small-scale manner close to the customer.

Offering – comprehensive range

Lesjöfors works with springs, wire and flat strip components for most technical applications. In addition to customized products, there is also a proprietary standard range of springs. The company is continuing its efforts to capitalize on internal sales synergies. The goal is to give more customers access to the full range of products. In 2017, the focus was on motor springs. All sales staff received training in this area of technology. Production for the European market was established in Latvia.