SCHWARZENBACH/SAALE - Nonwovens manufacturer Sandler reported strong growth in 2021, boosted by a strategic diversification approach that the company hopes will provide further stability in the future.
Based in Upper Franconia, Germany, Sandler said it closed 2021 with a growth in revenue but also warned that challenges continue to arise due to the extraordinary increase in energy prices since 2017.
Revenue at Sandler was €365 million, an increase of 11% compared to the previous year while the company also increased its number of employees from 940 to 990. The growth rate was mainly attributable to the capacity expansion at the company's U.S. plant in Perry, Georgia, Sandler said, noting that there was also double-digit sales growth in technical products. However, due to the geopolitical situation and the continued explosion in raw material and energy prices, the company said it was taking a cautious approach to the 2022 financial year.
Overall, CEO Dr. Christian Heinrich Sandler said the nonwovens specialist remained cautious. "In early January, we still hoped that the lessening of the turmoil surrounding the Corona pandemic would bring not only our industry back to clearer waters," Dr Sandler said. "However, the belligerent attack on Ukraine, geopolitical uncertainty and the continued increase in energy costs are clouding the waters again in terms of our outlook. At the same time, we are seeing our long-term strategy of consistently focusing on diversification in terms of technologies and industries, and the establishment of an additional company location."
In 2021, the coronavirus pandemic also made great demands on Sandler's "dedicated and motivated staff", Dr Sandler added, noting that the entire Sandler team fought "shoulder-to-shoulder" for the success of the company at both its German and US locations. "A high level of expertise and a correspondingly high level of commitment and flexibility made a successful year possible despite the continued massive restrictions caused by the pandemic and despite the market changes," he said. "Our teams in Schwarzenbach and Perry did a great job."
Reactions to the pandemic have completely changed the market and the market environment over the past two years, Dr Sandler said, noting that businesses that had been growing over many years have stalled, and supply chains have been turned upside down. Casting his mind back to the global supply bottlenecks, longer delivery times and the dramatic price increases in almost all goods and services, Sandler explained that the industry had already arrived at this point from a high cost level and a belief that the tip of the cost iceberg had already been reached. "But that has not proved to be the case in 2021 and this trend – we can now say after the first quarter of this year – will continue in 2022," he said. "However, despite facing major logistical challenges, we still managed to deliver on time." he said.
Looking beyond the current financial year into the future, Sandler continues to view environmental protection and sustainability as fixed, highly relevant constants in the corporate strategy with the company pursuing a constant goal of reducing its ecological footprint even further.
The company continues to focus on providing its junior employees with excellent training and training and developing the staff even further, especially in view of the ever-increasing challenges. The motto here being, "well-trained specialists and managers are what drives us".
Trainees are integrated into interesting tasks at an early stage and can grow as a result. More experienced colleagues from all the departments can train in leadership tasks and teamwork or pursue their own individual professional career paths. Just as in 2020, a “corona bonus” was awarded to every employee worldwide for the 2021 financial year to pay special tribute to the tremendous efforts made by the team.
The company has also experienced a strong drive in digitization. Sandler kicked of the ‘Fit for Future’ programme four years ago to pave the way for fully entering the digital age. Among other things, the introduction of a standardised ERP software has made an important contribution to this. The system helps to optimise new processes and enhance organisational structures. Not only does the company benefit from this internally, it also generates the "greatest possible benefit for our partners," said Sandler.
Current energy costs in Germany, however, remains a concern. "We are in global competition with other companies that have always had a different cost situation in this regard," added Dr. Ulrich Hornfeck, who is responsible for sales. "As an energy-intensive company, we need a reliable infrastructure. The current situation is a burden on our business and is an extreme driver of costs."
Awards
The CEO attributes the fact that Sandler also received key awards last year to the company's commitment and team spirit. For example, Procter & Gamble awarded Sandler the prestigious 'External Business Partner of the Year' award as one of only eight out of approximately 60,000 suppliers. "Being honoured by our long-standing customer in this way means a great deal to us," Dr. Sandler said. The company also received an award from the Bavarian State Government. The 'Bavaria’s Best 50', awarded for the third time, as one of the 50 best owner-managed companies in the State of Bavaria.
