In April 2013, Kemira presented its sharpened strategy in conjunction with the new financial targets for 2016. We focus on seeking growth particularly in the pulp, paper, oil, gas, and mining industries by developing chemical products and innovations differentiating Kemira against the competition. By the end of 2020, Kemira aims to become a leader in the industry and technology in the chosen target markets. Our vision is to provide the most valuable expertise and chemicals for water-intensive industries, which is also crystallized in our promise, “Where water meets chemistry”.
Our strategy has four key focus areas; business focus, growth, geographical focus, and innovation.
Business focus: Kemira provides expertise and tailored combinations of chemicals for water-intensive industries. We focus on pulp & paper, oil & gas, mining and water treatment to improve our customers' water, energy and raw material efficiency.
Growth: Paper and Oil & Mining segments are targeting profitable, above-the-market revenue growth through differentiated product lines, e.g. polymers, sizing and other process chemicals. Municipal & Industrial segment focuses on profitability improvement and on maximizing cash flow generation. We increase the share of capital expenditure used for differentiated product lines in order to support the targeted growth. With commodity products, such as coagulants and bleaching chemicals, the focus is on maximizing profitability and cash flow.
Geographical focus: Mature markets continue to be important for all segments, whereas the focus in the emerging markets is on selective expansion. In the emerging markets, China and Indonesia are the key markets for the paper wet-end chemistry. Brazil and Uruguay will remain important markets for the bleaching chemicals used in the pulp industry. In addition to the mature markets, the Oil & Mining segment will focus largely on Argentina, Brazil and Middle East when it comes to oil and gas, and on Chile, Peru and Africa when it comes to mining. Municipal & Industrial remains mostly on the mature markets for the time being, but we monitor the development of legislation and business opportunities in the emerging markets closely.
Innovation: Research and Development is a critical enabler for organic growth in Kemira and provides differentiation capabilities in water quality and quantity markets. Kemira's R&D spend will be increased for process improvement innovations in paper, oil & gas and mining industries, as well as in the related product lines. We aim at achieving 10% of our revenue from innovation sales in 2016, that is sales from new products or products to new applications launched within the past five years.
Continuous efficiency improvement will remain the key enabler for a successful strategy implementation.
From Redesign to Expansion
We have outlined a roadmap for our strategy “From redesign to expansion”. Naturally, the different phases overlap to a degree.
Furthermore, achieving growth and expansion will not be possible without a performance driven organization and above all, its employees. To achieve the ultimate goal of being an industry leader, we are striving to be best-in-class in our ability to leverage global performance culture, talents and operations.
Visit Kemira.com – Kemira's sharpened strategy "From redesign to expansion" and financial targets for 2016 released in April 2013.
Visit Kemira.com – See Kemira's Capital Markets Day presentation from September, 2013.