Profitability improvement

Continued focus on improving profitability

Valmet continues to focus on improving profitability through implementing its four Must-Win initiatives: ‘Customer excellence’, ‘Leader in technology and innovation’, ‘Excellence in processes’ and ‘Winning team’. Valmet targets to increase the comparable EBITA margin in all three segments (Services, Automation and Process Technologies).

Customer excellence 

Valmet aims to strengthen its customer base by implementing effective sales management practices and cultivating close relationships with customers. Valmet is targeting to increase its market share in Services and Automation by growing over two times the market. In Process Technologies, Valmet aims to maintain and improve its market share.

 
Leader in technology and innovation

Valmet is known for its world-class technology and is always looking to bring advanced and innovative solutions to the market. Furthermore, Valmet is placing a strong emphasis on product cost competitiveness.

Excellence in processes

Valmet is continuously developing and improving its processes. Valmet aims to ensure excellent project management and project execution. Supply chain management and efficient procurement are key for Valmet. Valmet is also streamlining its processes and renewing the ERP system.

Winning team

Valmet has a strong home base in the Nordic region but has also been increasing procurement, production, and engineering resources in cost-competitive countries. The company is investing heavily in its people, particularly through the global training portfolio, which supports the execution of the must-wins.

Quality costs

In order to reduce quality costs and lead times Valmet is implementing Lean, which is expected to improve efficiency and reduce waste. A common quality development approach, together with different quality tools and processes help reduce quality costs and lead times. 

Valmet is adding focus on global processes and Global Management System and implementing focused quality development projects related to supplier quality,
quality assurance and quality control, continuous improvement, audit
and risk management.

Procurement

Valmet has over 30,000 active suppliers in nearly 60 countries. However, approximately half of our purchases come from Finland and Sweden when measured by supplier spend. Our purchases mainly comprise metals-based products and electronic components and services from suppliers in the pulp, paper and energy industries.

To improve profitability, Valmet also focuses on procurement savings. These can be achieved by increasing local and cost competitive country purchases, increasing design
to cost (DTC) to create new sources for savings, increasing supplier involvement through supplier relationship management and continuing sustainable supply chain implementation.