Corporate group achieves a new sales record with around 380 million euro in 2015. Continued strong growth planned until 2020 by means of focus and investments of 120 million euro. Fette Compacting Engineering Division taps new business areas. The LMT Tools Division is bundling its forces and setting up Competence Centers in core markets.
Schwarzenbek, April 26, 2016 - The LMT Group achieved a new sales record in fiscal year 2015. With around 380 million euro, the group of companies succeeded in increasing turnover by more than ten percent over 2014. And the future also looks set for growth: the company aims to achieve sales of 540 million euro in 2020. This is based on an investment plan involving 120 million euro and the strategy until 2020 agreed by management and the Supervisory Board of the LMT Group which will see the Group focusing on international core markets in which it already enjoys a leading position or will achieve one over the medium term.
"Our overarching goal involves growth via best-in-class technologies and services in global markets", is how Olaf J. Müller, CEO LMT Group, outlines the business ambition behind the strategy until 2020. This is to be achieved by focusing on the Group's strengths: "In our core markets, the development of tablet presses for the pharmaceutical industry as well as segments of precision tool technology for the last value-adding process step. Using this basis, we hope to further optimize our range while specifically identifying and developing new global markets in which we can swiftly develop a leading position through our technical competencies and with the aid of our international structure. This way, we aim to grow sustainably and continue to generate above-average earnings."
Plans were triggered by a "Vision 2020 for corporate development" specified by shareholders in the LMT Group. On the basis of these plans, the three corporate divisions - Fette Compacting, LMT Tools and LMT Finance & Shared Services - have developed strategies which will be implemented without delay following recent approval by the Supervisory Board.
LMT Group - strategic control of the Divisions
The role of the LMT Group is to be strengthened in the course of the 2020 strategy. In addition to the function as a management holding at the Oberkochen location, it will also be responsible for corporate development and strategic steering of the Divisions which it will also manage financially. The actual Divisions are legally, financially and organizationally independent. The newly-initiated strategic projects of the LMT Group include international implementation of the LMT Group Academy concept, strategic personnel work and accelerated commitment toward an awareness of corporate social responsibility (CSR). The existing basic principles governing proper conduct of business are to be further developed as a comprehensive corporate governance system for safeguarding the ambitious growth targets.
Fette Compacting - growth in new business areas
Fette Compacting, world market leader in special machines for the production of tablets, will invest around 50 million euro in order to implement the strategy by 2020, with funds being injected into developing a new production facility in Nanjing, China, expanding the international sales network and advancing business with tableting tools. As in the past, the company hopes to continue to present one new development a year. Based on its competence in the area of tableting technology, Fette Compacting has developed a new machine for filling capsules, thereby tapping a second business area. In order to drive dynamic growth, the company will appoint a Technical Director at the next possible opportunity who will support CEO Olaf J. Müller and Commercial Director Karsten Kühl.
LMT Tools - developing Competence Centers in all core markets
Specializing in precision tools, the LMT Tools Division will link Sales and Production even more closely within the framework of its future strategy and further intensify international collaboration along the value-added chains within the Group. The focus is on developing four Competence Centers for application-specific customer support in Europa, China, the USA and India. Accordingly, the entire application and engineering know-how in the segments in which LMT Tools is a leading player will be available close to the customer. In order to implement this strategy, the tool technology division is consolidating its businesses under the newly-established LMT Tools management company, and strengthening the roles played by the segment managers within the matrix organization. Within the framework of strategic development, the LMT Tools Division will also invest in ongoing modernization and expansion of production. This will include relocation to a new site in Nanjing, China, as well as extending capacities for tool reprocessing and tool coating in China and the USA. The investment volume for the next five years will amount to 60 million euro.
LMT Finance & Shared Services - pushing internal strategic projects
The LMT Finance & Shared Services Division - the internal service-provider within the LMT Group - will be pushing central strategic projects for the Group under the management of its two Managing Directors, Karsten Kühl and Joachim Peter. This will include implementing Group-wide systems for liquidity planning and Cash Management, ongoing modernization of IT and strategic personnel work. The Division will also be expanding international logistics for the Group in an effort to accelerate deliveries to customers. The investment volume for infrastructure projects at the Schwarzenbek site and for IT until 2020 amounts to a total of ten million euro.
About the LMT Group
As a medium-sized group of companies operating worldwide, the LMT Group stands for top technical performance in precision tool and special machine engineering. Activities in tool construction are merged in the LMT Tools Division. Engineering activities are handled by Fette Compacting, the leading international manufacturer of tableting plants and accessories. With more than 20 plants, subsidiaries and service support points, the Group is represented in all relevant markets. In fiscal year 2015, the LMT Group achieved sales of 380 million euro and employed around 2,200 people worldwide.