HELSINKI - Nonwovens manufacturer Suominen has outlined a new five year strategic plan covering a number of areas ranging from market expansion to sustainability.
The new strategy, which also includes financial targets, is expected to underpin Suominen's sustainability credentials, improve its profitability through more efficient operations, and help build a high performance culture within the company. It is also expected to further strengthen the Finnish firm's capabilities in Europe and Americas while helping it evaluate growth opportunities in Asia, the largest nonwovens market in the world.
Suominen’s five focus areas to achieve its strategic targets are :
- Operational excellence - Improving our efficiency and cost consciousness across the organization
- Sustainability leadership - Leveraging fiber-based nonwovens know-how and unique assets to lead the market with sustainability
- Differentiate with innovation and commercial excellence - Creating closer customer relationships and offering best in class products and services
- Great place to work - Harnessing the positive energy and commitment to deliver results
- Dual operating model - Optimizing our operations and improving our results by managing two different types of business, specialties and standard
"Suominen’s main focus is on wipes and the vision is to be the frontrunner for nonwovens innovation and sustainability," the company said in a statement. "The market for spunlace, the nonwovens technology where Suominen is the leader with the largest global asset base, will grow in all regions. Legislation and consumer behavior drive for more sustainable products, and Suominen has excellent opportunities to serve this changing market."
The Suominen Board of Directors has also set the following financial targets for the strategy period 2020-2025:
- Net sales growth during the period: above relevant market growth
- EBITDA margin by 2025: above 12%
- Gearing during the period: 40-80%, including the effect of IFRS 16 Leases
“Our vision is to be the frontrunner for nonwovens innovation and sustainability," said Petri Helsky, President and CEO of Suominen Corporation. "We will ensure our leadership with future-oriented R&D and by accelerating the commercialization of our innovations.
"There are two targets that we aim to achieve with this strategy: growth and improved profitability. We believe that we can grow together with our customers in the changing market by offering sustainable products which the end users are increasingly demanding. Profitability will be improved also by investing in upgrading our assets, new product development, and our operational excellence initiatives."
Suominen manufactures nonwovens as roll goods for wipes and other applications. The end products made of Suominen’s nonwovens, such as wet wipes, feminine care products and swabs, generated net sales in 2018 of €431.1 million.