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“With this record-high order backlog and our improved profitability level, we can move into 2020 with confidence”: Pasi Laine President and CEO – Valmet
New Delhi | 25 Feb 2020 | The Pulp and Paper Times:
The leading global developer and supplier of technologies, automation, and services for the pulp, paper, and energy industries- Valmet is starting the year 2020 as a strong, continuously developing company. “All our four business lines – Pulp and Energy, Paper, Automation, and Services – developed well in 2019. Valmet received an order for a large pulp and paper technology delivery to Brazil consisting of a kraft liner production line, a new fiber line, new continuous cooking and a pulp dryer rebuild. The kraft liner machine order was an important breakthrough into the Brazilian paper industry market for Valmet. Furthermore, the continuous cooking order creates the first reference for our new cooking technology. We also received a second significant key pulp technology delivery to Brazil consisting of an evaporation plant and a white liquor plant”, Mr. Pasi Laine President and CEO – Valmet said in its Annual Reports.
Valmet’s orders received, net sales, and comparable EBITA was at a record high level at the end of 2019, Valmet’s brand is strong, and a professional and highly engaged team of more than 13,000 Valmeteers serves our customers around the world.
In 2019, Valmet’s orders received increased by 7 percent to EUR 3,986 million, and our order backlog at the end of the year was EUR 3,333 million. Net sales increased by 7 percent and amounted to EUR 3,547 million. The comparable EBITA margin was 8.9 percent, well within our target range of 8-10 percent. “With this record-high order backlog and our improved profitability level, we can move into 2020 with confidence,” Mr. Pasi says in the report.
Valmet’s business environment is impacted by megatrends that create both opportunities and risks. Valmet has defined three key megatrends that influence our strategic choices in the areas of resource efficiency, digitalization, and consumer behaviour. Our values and sustainability agenda are closely linked to our strategy and Must-Wins.
Our “Leader in technology and innovation” Must-Win focuses on developing and providing products and services that reduce our customers’ operating and investment costs while developing solutions that better meet their needs. Improving our product cost is important for improving our competitiveness – and Valmet’s profitability. We achieve this through increasing modularization, standardization, and optimization of our product design, and by enhancing our delivery chain, Mr. Pasi said.
Must-Wins and Growth Accelerators in the continued focus
We are implementing our strategy through four Must-Wins, focusing on customer excellence, technology and innovations, process excellence, and our people. On top of these, we are concentrating on two Growth Accelerators – building leadership in field services, and taking the lead in the Industrial Internet and digitalization.
In 2020, the same focuses on our strategy implementation will continue to guide Valmet forward. We will bring new and innovative products and services to the market, enhancing raw material and energy efficiency, develop our people through versatile training programs, and implement many development actions to further improve the customer experience.
We have progressed well in creating internal efficiency through a large number of digitalization and IT-related programs, and that work will continue in 2020. Our target is for Valmet to fully realize the benefits of digitalization, both internally and in serving our customers, by 2025.
I want to thank Valmet’s people, our valued customers, and our partners for their trust and cooperation during the last excellent year. It is a pleasure to move forward together into the 2020s.