Edited from: 2008 annual report
Perstorp states that it has focussed on three strategies: securing competitiveness, optimising production and exploiting opportunities for growth. These strategies it says have been successful, but as it enters the next phase of growth, it will need to pay particular focus to the current economic turbulence for it to continue growing.
“We are a small player in an industry dominated by giants, although we are big in our chosen niches. Our strength is that we are flexible and can move fast. That’s how we will stay a winner”, says president and chief executive officer, Bo Dankis.
Perstorp has made a number of acquisitions. One of these included Perstorp acquiring Solvay’s caprolactones production plant in Warrington, UK at the end of 2008. “The business is doing very well and we have already started a project that aims to double capacity by 2011”, says Dankis.
The company has also reorganised, changing from being a functional organisation to being an organisation based on three business areas. Perstorp says that as it grows and becomes more complex it becomes more important to distribute decision-making as far as it can throughout its organisation. Then it can capture opportunities quicker and tackle problems the minute they arise. Its new organisation will also make it easier to integrate future acquisitions.
“As early as the autumn, when we realised that the end of the year would be tough because of the economic downturn, we sat down and produced an action plan aimed at adapting our costs to the current situation. First and foremost we have delayed investment, but we were also forced to adapt the pace of production and reduce the number of employees”, says Dankis.
“It was also unpleasant that we were forced to slowdown our planned and very exciting Valex investment at Stenungsund, Sweden. We hope that 2009 will see the market become transparent once again so that it will be easier to plan future investments”, Dankis continues.
Outlook
Looking ahead, Perstorp believes that after a “tough start” to 2009 it is entering a period that will have fewer acquisitions. Its main task will be to manage what it has and make sure it doesn’t suffer serious damage in a period of reduced economic activity.
“We must also prepare for better times. Perstorp aims to be fastest out of the starting blocks when the business cycle starts picking up again. The economic downturn gives us an opportunity to focus on a number of product areas, customers, geographic areas and technologies. Now we can look at ourselves with a critical eye and revise our procedures and resources so that we can become more efficient at every stage, in product development, production, sales, distribution, i.e. all of our processes”, says Dankis.
Perstorp says that a “very important assignment in 2009” is to work on continuous improvement. It will put great value in innovation, but it believes that there is a danger that small improvements may become hidden behind giant investments.
“We must make more of these small improvements! We have therefore set up a group initiative and already have seen several pilot projects succeed. We will also continue to focus on our safety programme, Take Care”, concludes Dankis.
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See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Perstorp, year ended 31 December
| |
2008 |
2007 |
2006 |
2005 |
| Sales (SKr m) |
12,227 |
8,583 |
7,273 |
6,299 |
| Operating Profit (SKr m) |
653 |
803 |
566 |
663 |
| Total Assets (SKr m) |
21,911 |
14,873 |
13,456 |
14,164 |
| Number of Employees |
2,700 |
1,900 |
1,675 |
1,601 |
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Perstorp
Company Structure
Perstorp is a specialty chemicals company. Perstorp is controlled by PAI partners, one of Europe's leading private equity companies. Perstorp was formed in 2001 with the merger of Perstorp and the former Neste Oxo.
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