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ROXTEC
Another record year –
despite a troubled world
Despite 2022 being yet another year of uncertainty and instability, the Roxtec
growth curve is continuing to ascend. Sales smashed previous records,
despite the company winding down its Russian operations. Despite continued
challenges due to material shortages and price increases, the target of 3 billion
Swedish kronor in sales by 2025 is within reach.
Roxtec manufactures scalable sealing modules for cable and
pipe bushings for demanding environments with multiple
performance requirements – on land, at sea and underground.
The company’s seals are therefore found in the most diverse industries
and contexts – in everything from Italian superyachts to wind turbines,
on rigs and platforms, in heavy industry and at research facilities –
where they fulfill a wide range of functions. The seals are also essential its own software (SaaS), alongside its traditional products. The digital
in a variety of mission-critical IT and infrastructure. Today Roxtec
makes sales in 80 markets through both subsidiaries and distributors.
The company’s CEO, Magnus Holmberg, explains:
“We’ve seen very strong organic growth of almost 9 percent in
2022 and hope to end up with sales of over SEK 2.4 billion,” he says.
“Currency developments and inflation have been favorable in terms
of the development of sales, and we’ve been able to safeguard our
profitability despite cost increases. The component shortage has
been a challenge during the year, but our purchasing department has
done a fantastic job and so we’ve managed to keep production going.”
As a consequence of Russia’s invasion of Ukraine, Roxtec’s board
of directors decided early on to shut down operations in Russia. The
closure took place gradually to protect employees and ensure that all
steps in the legal process of closure were carried out in accordance
with the rules.
“I think we handled the situation responsibly,” says Magnus
Holmberg. “We made great efforts and attempted to protect our staff
on the ground in Russia. It was absolutely the right decision to make.
In addition, our products are now subject to sanctions.”
STANDING STRONG WITH SEVERAL STRINGS TO ITS BOW
Roxtec’s three business areas are Marine & Offshore, Power & Process
Industries and Industry & Infrastructure. From a geographical
perspective, the North American market showed strong demand in
Power & Process. In April 2023 Roxtec will open its new headquarters
in Tulsa, Oklahoma. This is part of establishing a stronger presence on
the other side of the Atlantic, focusing on continued growth. In Europe,
developments are more mixed. The southern parts started the year
strongly, but the market gradually weakened. The trend in northern
Europe was the opposite: initially weak and then gradually growing.
As forecast, the Industry & Infrastructure business area developed
strongly, and Roxtec won several deals in Europe and the US for
semiconductor manufacturers. The Asian market has continued to be
sluggish as a direct result of China’s recurring lockdowns, which are
hitting hard across the region. Most affected is Power & Process, where
investments in offshore wind power came to a complete halt in 2022.
“The fact that Roxtec has several strings to its bow, both in terms of
business segments and regions, is a source of strength,” says Magnus
Holmberg. “It’s clearly an explanation for this year’s success.”
GOOD MOMENTUM IN THE DIGITAL BUSINESS
For a couple of years, Roxtec has been focusing on increasing sales of
portfolio offers great opportunities for customers to have full control
over their cable bushings. In short, customers can customize and
document their solutions from the drawing board to installation and
regular inspection, as well as manage registration, quality control and
updates themselves.
“We’ve seen our digital business start to take off during the year,”
says Magnus Holmberg. “Customers can see the added value of our
software. This type of sales requires different skills, and to utilize
digital product potential, Roxtec also needs to recruit more sales
personnel.”
Roxtec is also certified to inspect watertight cable bushings on
ships and offshore installations. Due to new legislation and a backlog
of on-site inspections as a result of the pandemic, Roxctec expects
service assignments to grow in the long run.
THE ROAD TO THREE BILLION
Last year Roxtec launched a new sales target to reach SEK 3 billion
in 2025. The way to achieve this is by recruiting people with the right
skills and continuing to invest in product development, the customer
experience and value-adding services. In 2022 45 new employees,
not including replacement recruitments, started working at Roxtec.
Going forward, increasing staff levels remains a priority, mainly in
sales-related activities and IT. With 2022 in the rearview mirror,
Magnus Holmberg remains optimistic about the future.
“To sum up, it’s been a challenging year, but Roxtec employees
have much to be proud of,” he says. “We believe in further expansion.
Roxtec has several new products and a larger digital offering that we
will be rolling out in the coming years, and that will be accompanied
by a lot of new recruitment and growth.”
Magnus Holmberg, CEO
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