MENU
Menu
Share 2016-09-30 17:29 RATOS B 40.74 SEK

AH Industries

Operations

AH Industries (AHI) is a major supplier of metal components, modules, systems and services to the wind turbine, cement and minerals industries. The company specialises in manufacturing and machining of heavy metal components with high demands on precision and technical expertise.

The Group has been re-organised into three business areas, effective 2016: Manufacturing Solutions, Industrial
Solutions and Site Solutions. Manufacturing Solutions includes contract manufacturing that focuses on machining of heavy components that are primarily for the wind turbine industry such as rotor housings and hubs. Industrial Solutions supplies components to the cement and mineral industries, often in the form of modules or system solutions. Site Solutions supplies services and lifting equipment to turbine manufacturers and wind park owners.

AHI has approximately 370 employees and production facilities in Denmark and China.

Market

The global wind turbine industry and its value chain has undergone restructuring in recent years. Although global demand for wind energy is growing, the market situation for suppliers is still strained due to cost cutting, price pressure and volatile demand. Technological advances toward larger and more effective turbines within, among others, the offshore wind industry continues and provides opportunities for those suppliers, such as AHI, that can meet the new requirements.

The global wind energy market is expected to continue to develop favourably, although with major differences between product segments and geographic markets.

For the global cement and minerals equipment market, the climate is harsh, but long-term demand is expected to remain at an attractive level. 

The year in brief

2015 was another challenging, intense year for AHI and the improvement measures introduced in previous years continued. As an element of focusing on core operations, assets in the Tower & Foundation division, part of the Manufacturing Solutions business area (formerly Wind Solutions), were divested. The remainder of the operations was reorganised to realise synergies between the units.

The year’s sales increase was driven by good performance in Industrial Solutions and parts of Manufacturing Solutions.

Weak profitability within parts of Manufacturing Solutions, internal production disruptions and order delays impacted the year’s earnings, resulting in greater focus on new sales initiatives, business development and improvement measures.

Sustainability

Given its core operations within renewable energy, sustainability is an integrated part of AHI’s overall strategy. Building close relationships with both suppliers and customers is pivotal to the company. Prioritised sustainability issues include employee health and safety, reduced environmental and climate impact from production and demands in the value chain. AHI’s operations are environmentally certified in accordance with ISO14001 and in 2013 the company subscribed to the UN Global Compact.

Development potential

In recent years, AHI has carried out a large-scale change initiative to boost the company’s competitiveness and strategic position in the value chain. Considerable cost-
saving measures, consolidation of production, purchasing optimisation and changes in the organisation have been made and today, the company has a solid platform. In the immediate future, the company will concentrate on measures to improve profitability and new sales initiatives to broaden its customer base.

We still have a positive long-term view of developments in the wind turbine, cement and minerals industries and in AHI’s potential as a leading competitive supplier.

(Mainly from Ratos's annual report 2015.)