Beijer Electronics invests in industrial data communication

Over the last few years, Westermo has achieved major success with its solutions for Industrial Data Communication. The Board of Directors therefore wants to expand the business, with the target of growing the turnover from 370 million SEK to nearly 650 million SEK in 2017. The growth is expected to result in an increased profitability compared to present day 14% in EBIT. The total addressable market is estimated to 10 billion SEK, and is expected to grow by more than 10% per year. Main market competitors are companies such as Hirschmann and RuggedCom. The additional investment will expand Westermo’s product offer within the areas Mission Critical Edge Networks and Westermo IP Train, thereby strengthening Westermo’s position in demanding segments such as Rail, Oil & Gas, Mining, Power Distribution and Utilities. The investment plan also includes a substantial reinforcement of the sales organization. Over the coming three years, Westermo will invest 175 million SEK, most of this self-generated through Westermo’s profitable business. During this time period, headcount is expected to increase with approximately 50 people, both within R&D and the sales organization. ”This investment will further strengthen our position as a leading player within our selected segments,” says Anders Ilstam, Chairman of the Board. At the same time, the company announces that the present CEO, Fredrik Jönsson, will leave the company after several years within the Group. As of September 15, 2014, Anna Belfrage will be acting CEO. ----- 1 SEK = 0.10816 EUR (oanda 2014-09-15)