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FERALCO

Treating water

all over Europe

Feralco manufactures inorganic coagulants. These are chemical compounds,
mainly of aluminium and iron. These are added when treating water and, to
put it simply, they bind contaminants so that they can be separated. Water
treatment plants are the company’s main customers, but Feralco also deliver
to paper, pulp and other industries. The company is a leader in its sector in
Europe and also sells to a number of other countries, particularly in Africa.

The water treatment market in Europe is mature and not Despite these challenges, profits were on a par with the previous
growing to any significant extent. That said, it’s fragmented year, a record year. Sales also rose by around 20 per cent, mainly
in a number of countries, with lots of smaller stakeholders. thanks to the new acquisitions.
Feralco is one of the leading companies in Europe and has the
opportunity to consolidate the market by means of acquisitions, thus LOCAL PRODUCTION REDUCES TRANSPORT COSTS
strengthening its position further. “Changes in transport prices demonstrate the importance of local
production, and hence short transport distances. The more local our
GROWING IN GERMANY AND FRANCE production facilities are, the more competitive we can be. Last year’s
Two acquisitions were made in 2021. Feralco acquired German acquisition means we now have 18 production facilities in Europe,”
company Venator Wasserchemie in June, which has production says Stephen Childs.
facilities in three German cities and a combined turnover of around
SEK 200 million. Germany is the biggest market in Europe, and this “We’re continuing to have an interest in consolidation in our
acquisition more than doubles the size of Feralco in this country and industry,” continues Ludovic Huitorel. “This may involve acquisitions
expands its product portfolio as well. of family businesses where the owner is looking for an exit, or related
businesses in the chemical industry. Feralco is able to offer a long-term
“Transporting our products over long distances isn’t profitable, commitment in such cases, within a growing industrial platform.”
because they’re dissolved in water. That’s why local production is
important, and Wasserchemie’s three factories are a very welcome Feralco is also looking beyond treatment plants and industries.
addition to the Group. This acquisition also means we expand our Treatment of water directly in nature is one example thanks to the
product portfolio, primarily in the field of chloride-based products,” purchase of Vattenresurs of Sweden (see page 22). Feralco and Mellby
says Stephen Childs. Gård are also launching an investment initiative – the Circular Water
Initiative. The purpose of this initiative is to invest in and contribute
The second acquisition of the year was a transaction that involved to more sustainable water management on a commercial basis and
buying out the French company Feracid from a previous joint venture. ensure that more people have access to clean water.
This means that Feracid is now wholly owned and integrated with
Feralco’s French subsidiary. “Clean drinking water is in short supply on a global level, and things
will get worse unless we do something. That said, a lot of exciting
“The company focuses on iron chloride, a common feature of innovation is in progress with regard to circular water management,
wastewater treatment. This transaction reinforces our position in the and start-up companies are often involved. Feralco is able to
south of France,” says Ludovic Huitorel. contribute its expertise in chemistry, markets and regulations, while
Mellby Gård has venture capital for long-term ownership,” says
Operating activities in 2021 went well, although the year presented Ludovic Huitorel.
a number of challenges. Firstly, commodity prices rose sharply at the
end of 2021. Secondly, the COVID-19 pandemic continued to cause
problems in the supply chain, leading to a major rise in transport
prices. The task of adjusting prices to customers in this regard remains
largely to be done in 2022.

CEOs Stephen Childs
and Ludovic Huitorel

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