MALMÖ, Sweden--(BUSINESS WIRE)--Regulatory News:
The Board of Directors in Beijer Electronics (STO:BELE) has decided to make a major investment within the business area Industrial Data Communication, IDC.
Over the last few years, Westermo has achieved major success with its robust solutions for Industrial Data Communication. Westermo products have become synonymous with high quality and performance, and Westermo is thus in a strong market position. 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.
The Board of Directors also wishes to announce that the present CEO, Fredrik Jönsson, will leave the company after several successful years within the Group. As of September 15, 2014, Anna Belfrage will be acting CEO. The Board wishes to take this opportunity to thank Fredrik Jönsson for his diligent efforts through the years.
Beijer Electronics is a fast growing technology company with extensive experience of industrial automation and data communication. The company develops and markets competitive products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group present in 22 countries and sales of 1,376 MSEK 2013. The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE. www.beijerelectronics.se
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