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Hempel Announces New Strategy

Monday, February 22, 2021

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Last month, global coating supplier Hempel A/S announced that it was employing a new strategy, slated to double the company’s revenue by 2025.

The new strategy outlines a timeline defined by focus on the entire business, leadership positions in chosen segments, industry leadership in sustainability within those, as well as a strong focus on innovation and digitalization.

“When the world closed down in 2020 and global operations including ours were challenged, we sped up our strategy process,” said Group President and CEO, Lars Peterson. “Now we have laid the foundation for not only doubling our revenue but also for significantly increasing our positive impact for our customers, partners and employees. We will build leadership positions and invest in our core segments and put sustainability at the heart of how we do business.”

Hempel A/S

Last month, global coating supplier Hempel A/S announced via press release that it was employing a new strategy, slated to double the company’s revenue by 2025.

According to the release, the strategy will be realized through both acquisitions and organic growth. Hempel expects 50% of revenue growth to come from M&A, however, the strategy also includes an emphasis on building market leadership positions in its Decorative, Marine, Infrastructure and Energy segments. By 2025, Hempel expects more than 50% of its revenue to come from sub segments and geographies, in contrast to its current less than 10%.

In addition, the new strategy also sets ambitious goals on sustainability such as being carbon neutral in own operations by 2025 and reducing the carbon footprint of its customers by committing to science-based targets. The sustainability framework was scheduled to launch this month.

“Putting sustainability at the heart of how we do business will drive change both within Hempel and across our value chain through our products and services,” said Peterson. “We see sustainability as a key enabler for growth, by helping our costumers reaching their sustainability targets. Our target to double in size in the next five years makes our commitment to sustainability even more important, and we are ready to make some bold decisions as we accelerate.”

Specifically, the Double Impact strategy involves:

  • Doubling revenue through both organic growth and M&A’s by 2025. Approx. 50% of growth will come from M&A with both ‘inside-the-can’ and ‘outside-the-can’ focus;
  • Focusing the business so that Hempel will secure more leadership positions in our chosen sub segments and geographies. By 2025 more than 50% of our revenue will come from the areas where we have a leadership position, compared to less than 10% today;
  • Accelerating innovation both ‘within-the-can’ and ‘outside-the-can’ and making sustainability a key driver in our innovation. Our digital solutions will cater to our customers’ needs. In our chosen segments, we will provide the best end-to-end solutions for our customers; and
  • Becoming carbon neutral in 2025 and committing to the Science Based Target initiative to ensure a rigorous, scientific and well-documented approach for reducing emissions across our value chain.

Peterson concluded: “We have been spread too thin and too shallow and therefore we focus our business by exiting some geographies by own operation and strengthening others. Alongside that we know that our customers need suppliers with end-to-end solutions and a deep knowledge and impact on the market. Based on this, we have started a transformation of how we sell and develop by building even stronger partnerships with a number of customers to truly understand their needs, future challenges and to co-create differentiated solutions.”

   

Tagged categories: Asia Pacific; Business management; Business matters; Business operations; EMEA (Europe, Middle East and Africa); Hempel; Latin America; North America; Program/Project Management; Z-Continents

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