Hempel says it is embarking on an ambitious new strategy to double revenue as well as double its positive impact.
The company says 2020 was a year of transition. While still securing paint and coatings supply globally in a challenging COVID-19 year and developing core business areas, a new strategy on how to focus the 105-year-old company has taken shape. Within the next five years, Hempel says it will double revenue through refocused geographical priorities, focused segment leadership positions and M&A, while at the same time accelerating on sustainability, innovation and digitalization, says Group President & CEO, Lars Petersson.
“When the world closed down in 2020 and global operations including ours were challenged, we sped up our strategy process,” he says. “Now we have laid the foundation for not only doubling our revenue but also for significantly increasing our positive impact for our customers, partners and employees. We will build leadership positions and invest in our core segments and put sustainability at the heart of how we do business.”
The strategy will be realized through both acquisitions and organic growth as well as investments in sustainability, innovation and digitalization. Hempel expects 50 per cent of revenue growth to come from M&A but the strategy also has a clear-cut emphasis on building market leadership positions in specific areas of our four chosen segments: Decorative, Marine, Infrastructure and Energy.
“By 2025, we expect more than 50 per cent of our revenue to come from sub segments and geographies where we have a leading position, compared to less than 10 per cent today,” Hempel says.
The new strategy sets goals for sustainability such as being carbon neutral in own operations by 2025 and also reducing the carbon footprint of its customers. To ensure a rigorous, scientific and well-documented approach to becoming a sustainability leader within the coatings industry, Hempel says it has committed to science-based targets. The sustainability framework will be launched in February 2021.
“Putting sustainability at the heart of how we do business will drive change both within Hempel and across our value chain through our products and services,” Petersson. “We see sustainability as a key enabler for growth, by helping our costumers reaching their sustainability targets. Our target to double in size in the next five years makes our commitment to sustainability even more important, and we are ready to make some bold decisions as we accelerate.”