Thursday , June 24 2021

Alfa Laval CEO: "Partnership rather than acquisition"



Aluminum group Alfa Laval is interested in acquisitions, but there are also new energy technologies that can be a better way of participating than partnerships or partnerships get through acquisitions.

Tom Erixon, CEO of Alfa Laval, said in a keynote speech at the Capital Markets Day in Copenhagen:

Alfa Laval is also in the process of replacing products in many areas and many products are under way. Supply chain, and customer education.

Alfa Laval's boss says, "It's ahead of sales forecasts for new products." "Good, if that's happy, that's it."

Regarding Alfa Laval, particularly in terms of profitability-critical service areas, Tom Erixon points out that the company is struggling with as much growth as the company wants. There is a lot of work to do in service area.

Alfa Laval also said that the demand situation in 2019 is "reasonably optimistic" and will continue into 2020.

Alfa Laval will distribute the order about 12 months in advance and until the company has a problem.

"If emotions do not deteriorate, it will be fine in 2020," said Tom Erixon. At the same time, the company emphasized that it takes one year at a time.

There are concerns such as lack of budgetary discipline in countries like Italy and the United States. Alfa Laval thinks that he is disproportionately concerned about the impact of more difficulties on the economy than geopolitical conflicts like Turkey and Iran.

He can not be satisfied with trade disputes and geopolitical developments, but he does not know when and how it will affect the business cycle.

Looking at the macroeconomic situation, Tom Erixon points out that although some downward adjustments are underway, forecasting experts still look forward to growth.

"We can not see a global recession that anyone can predict," he said.

Oil prices fell from $ 80 to $ 70, but Alfa Laval was very profitable on land and offshore projects and oil prices were well below $ 60 a barrel, Tom Erixon said.

"We can see that unless the oil price drops to a few years ago, the investment mechanism for the oil sector will not change," he said. "This is what we are seeing now."


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