MAGNUS HOLMBERG, CEO
Roxtec develops, manufactures and sells modular sealing solutions for cables and pipes. Examples of industries and areas of application include shipyards, the oil industry, process and manufacturing industries, construction, energy and telecoms. Roxtec conducts sales in 80 geographical markets through 28 subsidiaries and a growing number of distributors and agents.
Roxtec has been part of Mellby Gård since 2006. Mellby Gård’s representatives on the Board of Directors are Hans Stråberg (Chairman), Rune Andersson and Johan Andersson.
- Headquarters: Karlskrona
- Sales 2021: SEK 2,027 million
- Employees (FTE): 820
- Chairman: Hans Stråberg
ROXTEC SEES OPPORTUNITIES IN ALL DIRECTIONS
Roxtec performed strongly in line with the global recovery after the pancemic, despite an uncertain start to the year and a market affected by material shortages, high raw material prices and price increases from suppliers. Gradual restarts in key markets in 2021 helped Roxtec’s sales to reach the two billion mark once again. Aggressive new targets for 2025 were set during the year and will be achieved with new products and a bigger workforce.
“The market has been really dynamic the whole year. We saw early signs of an increase in demand in the Asian markets, then things picked up in Europe, and the year ended with a strong spurt in North America.”
Market movements resulted in Roxtec being more active in addressing challenges relating to suppliers and logistics during the year. The company also reviewed its pricing, which resulted in a number of new price adjustments.
STABLE YET UNCERTAIN
Roxtec supplies complete sealing strips to a wide range of industries for use on land, at sea and underground. Development for the Industry & Infrastructure business area continued at a steady and stable pace during the year, with an underlying expectation that the market will pick up again in 2022.
Power & Process Industries underwent a strong development in 2021. China in particular made significant investments in offshore wind power, with large orders month after month. Demand from the nuclear industry in the US remained strong, while oil and gas investments were significantly lower during the year.
The cruise ship industry continued to present challenges. The market for Marine & Offshore was unpredictable as German and Finnish manufacturers slowed down while customers in southern Europe were working at full speed.
ROXTEC SETS NEW TARGETS FOR 2025
Sales over the last few years, in combination with the changes in the market, resulted in a new sales target for Roxtec. Sales are set to reach SEK 3 billion by 2025.
“Reaching over SEK 2 billion in sales in 2021 has put us within touching distance of the sales record. We’re now planning to exceed this by a long way in 2025.”
To achieve this, Roxtec has to focus on three development areas: product development, customer experience and value-added services. Roxtec will be making major efforts to recruit staff for sales and support functions, as well as development in 2022.
“We can see opportunities for Roxtec in all directions, and we have to really focus if we’re to achieve this target. We’re expecting to take on 90 new staff over the next year.”
DIGITALISATION AND NEW LEGISLATION
Continued growth involves digitalisation and service. Roxtec needs to capture more business by identifying, gathering and presenting product data and reinforcing its presence in more channels. Roxtec launched additional software in its digital product portfolio in 2021 so that customers themselves can keep track of installation, inspection and documentation. Roxtec Transit Operate™ is a Software as a Service (SaaS) solution that allows all transits to be recorded and surveyed while ensuring and documenting the quality of the installations. Roxtec currently also offers its digital products Roxtec Transit Designer™ and Roxtec Transit Build™ for design and configuration applications.
Roxtec also performs servicing with on-site inspections, but not many took place in 2021 on account of clear restrictions on visitors. New legislation for maritime classification came into force in 2021 and imposes additional requirements for inspections and documentation. This paves the way for new opportunities for Roxtec, which is certified for the inspection of watertight cable transits on board ships and at offshore installations. Roxtec also offers software so that users can keep track of the current status and history of transits.
SUSTAINABILITY PROVIDES BUSINESS OPPORTUNITY
Roxtec initiated more structured sustainability work in 2020. In a sustainable transition, Roxtec’s efforts mainly involve “protecting life and property”. The company also does its best to minimise its own footprint and identified clear targets for its sustainability efforts during the year which aimed to increase circularity and reduce carbon emissions. Examples include reusing rubber instead of letting it go to waste.
“We’ve received our first rating from the EcoVadis evaluation system, so we know exactly what’s happening with our sustainability efforts right now. The next step will be to break down our work into activities and actions so that we can meet the targets. We have long-term owners who don’t believe in cutting corners. They have every confidence in us and trust us to deal with this transition in the right way ourselves.”
SIGNIFICANT EVENTS 2021
Magnus Holmberg takes over as new CEO of Roxtec.
Roxtec sets a new sales target of SEK 3 billion for 2025.
Purchase of a new property in Tulsa, Oklahoma in the US, relocation planned for 2022 and inauguration of a new office building in Karlskrona.