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Ahlstrom redefines strategy and financial goals

04 Feb '16

2 min read

Following a comprehensive review of its operations, Ahlstrom has redefined strategy and set new long term financial targets extending to the year 2018.

“We are committed to growing and creating stakeholder value by providing the best performing sustainable fibre-based materials and our vision is to be our customers' first choice,” an Ahlstrom press release said.

Ahlstrom further said that its strategy is built on three key success factors; customer focused solutions with tailor-made products, leading technology and manufacturing platforms, global reach and local insights.

“Our mission is to provide innovative fibre-based materials with a function in everyday life,” the Finnish nonwovens producer informed.

As part of the implementation, the company's business structure was simplified as of the beginning of this year and reorganised into two business areas, Filtration & Performance and Specialties.

According to Ahlstrom, the aim of this change is to increase market and customer focus as both segments have business unit specific strategies and operating models.

“This enables us to provide customer-driven product development and tailored customer service, cost efficiency, better allocation of resources, and specific go-to-market approaches,” the company added.

The roadmap for execution outlines the change in strategy and is focused on commercial excellence, a new lean operating model, organic growth via higher asset turnover and growth via new platforms.

As part of the new financial goals, Ahlstrom expects adjusted operating profit margin to be above 8 per cent by 2018 and gearing to be maintained below 100 per cent.

It also aims for a stable dividend, increasing over time, based on the annual net income performance

While, the adjusted operating profit margin excludes restructuring costs, impairment charges, capital gains or losses and discontinued operations.

"To be the first choice of our customers, we need to be even better in anticipating end-user needs and by providing innovative solutions, we help our customers succeed," Ahlstrom's CEO Marco Levi said."

"We believe that with our strategy we can achieve our vision, however, for us to be the best possible partner for our customers, we need to make a shift in the execution," he too added. (AR)

Fibre2Fashion News Desk – India

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