At its Capital Markets Day in Stockholm, Sweden, Alleima provided an update on its strategic priorities and progress towards continued profitable growth. Göran Björkman, CEO at Alleima, highlighted updates on the addressable market and capital allocation strategy. The company’s strategy for long-term value creation focuses on an overall mix shift towards more profitable products, and a capital allocation focused mainly on five prioritized segments: Chemical and Petrochemical, Industrial Heating, Medical, Nuclear, and Hydrogen and Renewable Energy.
The event featured presentations by Göran Björkman, President and CEO, Johan Eriksson, CFO, Carl von Schantz, President of the Tube division, Robert Stål, President of the Kanthal division, and Per Eklund, President of the Strip division. They presented the company’s performance, strategic focus areas, key achievements, and ambitions for the future.
“Alleima is a global leader in advanced materials technology with a premium offering built on deep metallurgical expertise. Our broad exposure and strong market positions enable us to capture profitable growth opportunities in high-value segments. In recent years, we have strengthened our financial resilience through improved profitability and growth investments in targeted segments, which have resulted in a more balanced portfolio that reduces volatility. With a solid backlog, ongoing efficiency measures, and targeted growth initiatives, we are well positioned to continue creating long-term value”, says Göran Björkman, President and CEO of Alleima.
Historically, Alleima has clearly improved its financial foundation and is a less volatile and more profitable company today compared to a few years ago. The company has done so through consequent strategy execution. With a strong balance sheet the company has the right prerequisites for continued development. Several of the company’s markets show strong growth potential, and the medium-to long-term outlook remains positive. The forecast for the addressable market indicates an annual growth rate (CAGR) of around 6 percent.
The company’s strategy for long-term value creation focuses on five prioritized segments: Chemical and Petrochemical, Industrial Heating, Medical, Nuclear, and Hydrogen and Renewable Energy. This is based on a summarized view on market attractiveness regarding growth, size and position, profitability and capital efficiency.
In the Chemical and Petrochemical segment, the company has achieved impressive growth in Asia, with revenue increasing by an average of approximately 20 percent annually over the past seven years.
Positive trends fuel future demand for Industrial Heating, such as increased automation and digitalization, the shift to efficient and sustainable energy sources, sustainable transportation and the trend of industries decarbonizing through electrification.
The Medical business unit has shown strong growth, where Alleima has quadrupled sales during the past 5 years and extended its footprint in the US, Europe and Asia. In 2023, the Medical business unit accounted for 17 percent of Kanthal’s sales, a share that has since increased to 27 percent.
Alleima has a positive outlook for the Nuclear segment. In 2024, the company sold products to nuclear power customers worth just over SEK 1 billion. Looking ahead, there is significant opportunity in this area. According to the World Nuclear Association, global nuclear power capacity is expected to double by 2040.
Long-term, global demand for energy, particularly renewable energy, is expected to increase in pace with economic development. This will primarily drive demand in the customer segments of Hydrogen and Renewable Energy, Nuclear, and Oil and Gas.
Acquisitions and investments will continue to play a central role in the company’s strategy for profitable growth. The focus is on strengthening capabilities, broadening the product portfolio, and increasing geographic reach primarily within the strategic growth areas.
In his presentation, Göran Björkman also presented the company’s sustainability targets, which recently were officially reviewed and validated by the Science Based Targets initiative (SBTi), aligning the company’s goals with the latest climate science. Under these targets, Alleima aims to reduce its Scope 1 and 2 CO₂ emissions by more than 54% and Scope 3 emissions by 28% by 2030, using 2019 as the baseline year. Impressively, the company has already achieved a 41% reduction in Scope 1 and 2 emissions well ahead of schedule.
This year’s Capital Markets Day was held at the Vasa museum in Stockholm. Around 100 participants attended physically or online and participants at the museum were treated to a guided tour. Alleima is the main partner to the Vasa museum in a unique technical collaboration. The aim is to preserve the ship for future generations through a steel skeleton, provided by Alleima’s world-leading materials technology and expertise.
Recorded webcast from the Capital Markets Day
