Lesjöfors AB

Lesjöfors is Beijer Alma’s largest company, which has grown significantly over the years primarily through international acquisitions. Lesjöfors, which manufactures springs, wire and flat strip components, has been a part of the Group since 1992 and is a full-range supplier that offers both standard products and custom-manufactured components. Lesjöfors is the largest spring manufacture in the Nordic region and a leader in Europe. It is also one of few companies consolidating the industrial springs market via acquisitions.

Lesjöfors in brief

Operations: is a global manufacturer of springs, wire and flat strip components that has a broad international operation comprising 26 manufacturing units in 13 countries and sales in 60 markets.

Business areas: Industry and Chassis Springs.

Offering/range: standard range of industrial springs and development of customized products (Industry). Replacement springs for European and Asian cars and light trucks (Chassis Springs).

Customers/markets: industrial companies in most sectors in Sweden, the other Scandinavian countries, the UK, Germany, China and North America (Industry). Spare parts distributors in the UK, Germany, Russia, Sweden and the other Scandinavian countries (Chassis Springs).

Competitive advantages: broad range and extensive spring expertise that informs customization across the entire production process (Industry). Proprietary manufacturing, complete range and high levels of delivery precision (Chassis Springs).

Revenues: MSEK 2,449

Number of employees: 1,696

President: Ola Tengroth

Read more: lesjoforsab.com

Ola Tengroth, President of Lesjöfors

Ola Tengroth, President of Lesjöfors:

Expanded collaboration results in increased add-on sales

A strong performance, despite the drawn-out pandemic. Lesjöfors’s strengths include its decentralized way of working and high delivery capacity. President Ola Tengroth discusses the company’s focus on sales growth and increased digitization as well as environmental investments that will help to reduce CO2 emissions.

What is your short-term focus?

We are reviewing our strategy and looking at new growth areas. One such area is medical technology, where we are scaling up our investments. Another example is springs for heavy industry, which we also plan to explore further.

When it comes to organic growth, we are focusing on encouraging our companies to sell more of each other’s products, partly using the new sales platforms we are currently developing. We are appointing people to assume responsibility for this area and developing tools that will make it easier for each company to link the products of their sister companies to their own sales. This area offers enormous potential and will provide the entire range with traction in all markets.

Sustainability will also be a focus area. We are refining our processes for setting and following up on targets, but we also plan to invest more in solar panels and biogas in order to reduce our CO2 emissions. Digitization is another area we are investing in. At present, we are reviewing our operations to determine the areas where digital tool will be most beneficial. For example, new web solutions for sales or artificial intelligence and machine learning in our processes and production. We are also prioritizing acquisitions.

During the lockdowns, it was difficult to carry out acquisitions, but we plan to change this going forward.

What strengths and areas for improvement have you taken with you from the period affected by the pandemic?

We managed well, and our earnings in 2020 were on a par with 2019. One of our strengths is Lesjöfors’s decentralized way of working. This allows us to make decisions “on the ground,” close to our customers, employees and operations. Although our units were impacted by the pandemic, we handled the situation well, which I believe was a result of our ability to quickly make local adjustments.

At the same time, we have devoted a lot of effort to ensuring our delivery capacity. This cost a little extra in the form of inventory management, customer support, etc. but is worth it. Our delivery precision rate is normally over 99 percent. We managed to maintain this rate without any major problems, largely thanks to the robust supply chains Lesjöfors has established over the years.

Ola Tengroth, President of Lesjöfors

Lesjöfors business areas

Chassis Springs

Replacement springs are sold in the spare parts market for cars and light trucks. They are part of vehicle suspension systems and contribute to safety and driving properties. Customers have access to more than 5,500 models in a complete range that is expanded to include 300 to 500 new products each year. Lesjöfors controls everything from design to manufacturing. Through efficient inventory management and distribution, springs are delivered to customers across Europe within 24 hours.

Industry

Lesjöfors’s products are used in nearly the entire industrial sector and are often adapted to meet specific customer needs. This gives the range a unique breadth with a wide variety of possibilities for variation. Design, manufacturing and support are small-scale and are performed close to the customer at the plants. This prepares the way for targeted, cost-efficient production, in which the company’s technical sales staff and machine operators play key roles in developing the right spring, wire or flat strip component.