Articles from Auriga Magasinet No. 3, December 2006
Focus and divestment in the Group
Auriga has decided to depart from its conglomerate strategy and concentrate its efforts on developing Cheminova. The possibility of selling off Skamol and Hardi is being investigated.
Almost a year ago, Auriga agreed on an ambitious plan for Cheminova’s growth in the coming years. The plan outlines how Cheminova would be able to increase its revenues from the current level of DKK 4 billion to about DKK 6 billion after 5 years and at the same time improve profitability. The means for achieving this are several new products and considerable expansion of the sales organisation with more and stronger sales subsidiaries in the most important agricultural countries.
Cheminova’s plan is described in detail in the May issue of the Auriga Magazine, which can still be viewed on this website.
In addition to financial resources, this growth strategy also requires the focused efforts of the group’s management and employees. We have therefore decided to concentrate our efforts on Cheminova, which is and always has been Auriga’s core business. Consequently, a decision has been made to investigate the possible divestment of our two other companies, Hardi and Skamol.
Skamol’s biggest business area is supplying insulation products to the global aluminium industry, where it is market leader. Hardi is the world’s biggest sprayer specialist. Both enterprises have undergone radical changes in recent years and are today well geared for future growth in terms of both revenue and earnings.
They are thus two healthy companies which each possess considerable potential and which now need to find new owners who will and can further develop them. At present, no one knows when Hardi and Skamol will be sold off from the Group. What is most important is that the right owners are found. On the following pages, the presidents and CEOs of the two companies briefly describe their respective enterprises.
Hardi – the world’s biggest sprayer specialist
Hardi is in the process of completing a major chapter in the history of the company, changing from being a sprayer manufacturer which dominated the market for smaller sprayers, to also becoming a major supplier of large and very large trailer sprayers.
The first product series in the next generation of trailer sprayers to be released for sale was the New Commander. This product series – which was introduced in 2005 – has already won more than 20 medals for its outstanding design, good environmental qualities and many new features. New Commander is now being further supplemented with the Ranger product series.
With these new products, Hardi is well equipped to compete in the future market where farms continue to grow in size.
Hardi develops, manufactures and markets sprayers and spraying equipment for
effective and responsible plant care. The company is a leading supplier of high-
performance precision spray-ers for all crop segments.
There is also considerable focus on developing and optimising the parts of production which Hardi will carry out in future, for the company’s benefit. The company is in the process of outsourcing its production of injection-moulded plastic components, metal processing and cylinder production to sub-suppliers that specialise within these areas.
In implementing these measures, Hardi has established a flexible production structure which can be tailored to the fluctuations in demand which are seen in the market for agricultural machinery.
The combination of this future-oriented product palette, which will boost the company’s revenue and earnings, and the flexible costs structure which is being established offers Hardi exciting development prospects in the coming years.
Skamol’s growth will continue, also with a new owner
Since a comprehensive rationalisation of the company in 2002/2003, Skamol has pursued a growth strategy which, through improved capacity utilisation at its factories and a renewal of its product programme, will ensure definite improvements to its earnings. Good trading conditions worldwide, active market developments and the introduction of several new products has meant growth in revenue during the first three quarters of 2006 of almost 30 per cent with growth within all four of the company’s business areas.
Skamol develops, manufactures and markets products based on moler, perlite,
vermiculite and calcium silicate. The products are used for high-temperature
insulation and fire protection – in-cluding tests of fire door cores.
The greatest growth has been achieved within fire protection products that are based on the introduction of calcium silicate cores for fire doors and marine panels. Sales of inserts for wood-burning stoves have increased through the continued development of the market in North America and Eastern Europe and through the introduction of new surface-treated and painted materials. Sales to the global aluminium industry have grown, partly thanks to the continued introduction of new complementary products. Sales of insulation products for other parts of the high-temperature industry have increased through the sale of newly developed spray substances and a special vermiculite product for the steel industry.
The new products are expected to continue their market penetration, while sales of established products will increase hand in hand with growing demand. Within the biggest business area, the global aluminium industry, a number of new plants will be constructed in the coming years to meet the continuing growth in aluminium consumption, while the continued high energy prices will lead to healthy demand from both heavy industry and the construction sector.
| Facts |
Skamol |
Hardi |
| Business area |
High-temperature insulation |
Spraying equipment |
| Founded |
1912 |
1957 |
| Part of the Auriga group since |
1989 |
1997 |
| Revenue 2005 |
DKK 201 million |
DKK 1,033 million |
|
Number of employees
- in DK
- abroad |
185
165
20 |
1,150
700
450 |
| Domicile |
Nykøbing Mors |
Taastrup |
| Locations in Danmark |
Nykøbing Mors,
Branden, Fur,
Skarrehage, Aalborg |
Taastrup,
Nr. Alslev |
| Subsidiaries abroad |
Germany, France,
USA, Canada |
USA, Canada, Norway,
Sweden, UK, Germany,
France, Spain, Australia |
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