The Board of Directors of the VBG GROUP has decided to introduce a new overall organisational structure. With this change, the Parent Company, VBG GROUP AB, has strengthened its focus on continued profitable international expansion. It also allows clearer strategic control of the Group’s business units.
In the new organisation, the company’s operations are divided into three divisions. The ambition is to grow by adding new business areas in the future. The new organisation takes effect in October 2011.
“The VBG GROUP has developed very positively over the past ten years. The company has strengthened its position as an internationally leading group within profitable and stable niche markets associated with trucks and trailers, mechanical power transmission and energy and shock absorption.
These operations generate good profitability and the Group is financially stable. Now we are taking the next step and creating a structure for continued profitable growth,” says Peter Hansson, Chairman of the VBG GROUP.
Three divisions
The new organisation entails a more customer- and market-oriented subdivision of the Group’s business units. From previously having been divided into two business areas, RINGFEDER POWER TRANSMISSION and VBG GROUP TRUCK EQUIPMENT, the Group is now divided into three divisions:
• Power Transmission Division – Will, through its own strong brands, be a recognised global market leader in selected niches within mechanical power transmission and energy and shock absorption. The division consists of the Ringfeder, Gerwah and Ecoloc brands. The customers are found in such widely disparate industrial markets as the construction, machinery, power and mining industries. Annual turnover about SEK 300 million.
• Truck Equipment Division –Will, through its own strong brands, be an internationally leading supplier of coupling equipment for trucks with heavy trailers.
The division accounts for more than 50 per cent of the global market via the Ringfeder and VBG brands. Complementary brands are Onspot and Armaton. Annual turnover about SEK 600 million.
• Trailer Equipment Division – Will, through its own strong brands, be an internationally leading supplier of equipment for trailers. The division accounts for more than 50 per cent of the global market for sliding roofs, via the Edscha and Sesam brands. Annual turnover about SEK 300 million.
Each division consists of internationally leading brands within their market niches. The Group strives to grow further within each individual division, but also sees opportunities to grow by establishing new business divisions with a logical connection to existing operations and the Group’s industrial expertise.
“In recent years we have strengthened our customer focus and created an efficient production structure in order to take advantage of new opportunities on our niche markets – not least on the trailer market.
Dividing the operations into three divisions is a natural continuation of this process. It enables us to meet the needs of our different customer groups in a clearer fashion,” says Anders Birgersson, Managing Director and CEO of the VBG GROUP.
Per Ericson has been appointed Division Manager of the Trailer Equipment Division with head office in Krefeld, Germany, while Anders Erkén has been appointed Division Manager of the Truck Equipment Division with head office in Vänersborg. The Power Transmission Division will continue working as today with Thomas Moka as Division Manager and with a new head office in Gross-Umstadt, Germany.
Increased focus on strategic control
According to the new organisational structure, the Parent Company, VBG GROUP AB, is responsible for the Group’s financial management and allocation of resources between the divisions, as well as for development of the long-term business strategy and overall matters related to HR and IT. Two new functions are being introduced in the Parent Company: Group Information & Business Development, and Quality Control.
The new management structure entails further decentralisation of profit and loss responsibility.
Each Division Manager is responsible for operating profit and loss and tied-up capital as well as for development and execution of business plans for the division in accordance with overall Group goals and strategies.
“With the new structure we are adapting our operations to permit continued profitable growth in existing business areas. Thanks to efficient management and a clear delegation of responsibility, we are also making it possible for us to enter new, closely-related market niches where we can exploit our industrial expertise and existing competitive advantages,” says Anders Birgersson, Managing Director and CEO of the VBG GROUP.
Vänersborg, 25 October 2011
VBG GROUP AB (publ)
For further information please contact:
Anders Birgersson, Managing Director and CEO, tel: +46 521 27 77 67, +46 702 27 77 78
The information in this press release is of the type that VBG GROUP AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act, as well as the Nordic Exchange’s Rule Book for Issuers. The information was submitted for publication on 25 October 2011 at 9.00 a.m.
