Roxtec

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 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 its own software (SaaS), alongside its traditional products. The digital 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.”