SemperGrowth200: From restructuring to a growth strategy for Semperit Group

The Executive Board has completed the restructuring of the Industrial Sector with a far-reaching success and increased its profitability. Within the new strategic direction, the Semperit Group is now to be transformed into an industrial rubber specialist with full power and focus: Going forward, the potentials in the Industrial Sector shall be better utilised through a significant increase in customer intimacy, a more market-oriented direction of the organization and a stronger focus on applications. The aim is to serve existing and future markets faster and more effectively.

Important structural conditions for this were created by organizing the Industrial Sector into four instead of three segments (Semperflex, Semperform, Semperseal, Sempertrans) and taking the first step towards regional development of non-European core markets by a production expansion and a regional sales organisation in North America. With the aim of identifying and developing new growth regions, industries and applications and, in particular, exploiting cross-segment sales opportunities, the new organizational unit Customer Excellence Center (CEC) commenced operations in the fourth quarter of 2019.

Based on its strong knowhow in materials and processes, the Semperit Group will also concentrate more strongly on its application knowledge in future. The chemical and process-oriented fundamental knowledge that has been available for many decades is to be used more substantially for the development of new products going forward. A clear focus of the new industrial strategy is on innovation and digitalization: “Rubber as our material has to face the requirements of Industry 4.0 and deliver digital functionalities as well,” says Füllenbach.

Until the end of 2024 – the 200th year in the company history – Semperit is to grow again to a significantly higher revenue volume through organic growth steps and a clear M&A strategy. The new strategic direction will be accompanied by the modernization of the corporate appearance, which is intended to convey and visualize the progressive change of the Semperit Group more strongly.

In connection with the focus on the Industrial Sector, Semperit re-defines the target set at the beginning of the restructuring process (until now: EBITDA margin of approximately 10 % from the end of 2020) and strives towards an EBITDA margin of approximately 13 % until the end of 2024.

The publicly listed company Semperit AG Holding is an internationally-oriented group that develops, produces, and sells in more than 100 countries highly specialised rubber products for the medical and industrial sectors: examination and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna. The Semperit Group employs around 7100 people worldwide, including about 3,800 in Asia and around 900 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 14 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, Australia, and America. In 2018, the group generated revenue of EUR 878.5 million and an adjusted EBITDA (without one-off effects) of EUR 50.3 million.

www.semperitgroup.com