Thomas Widstrand
The business
Troax is a leading global supplier of area protection for indoor use (metal based mesh panel solutions) within the machine guarding, warehouse partitioning and property protection market segments.
Since the company was founded in 1955 it has developed from a general manufacturer of metal mesh products, such as for example dish racks and shopping trolleys, to a leading supplier of high-quality metal based mesh panel solutions that increase the safety for people, property and processes. During this time Troax has developed a global sales organisation that together with its own production units and distribution centres make up the platform from which Troax delivers its mesh panel solutions to customers worldwide.
Business model and financial goal
Business model
Troax offers products of the highest quality and functionality with the aid of automated and environmental production processes. The company offers competitive and flexible module systems for warehouse partitioning and mesh walls and machine guarding that follow laws and regulations. Troax strives to act quickly and professionally based upon customers’ needs and to be both a local and a global partner that offers reliability, expertise, service and support.
Core values
Troax’s core values are linked to the organisation’s ambitions and goals and constitute the basis for the company’s corporate culture. Core values that permeate all of Troax's activities and characterise employees’ work can be summarised by three points:
- Customer focus
We are responsive and committed to putting our client at the centre, and we offer solutions, products and service of the highest quality. - Respect
We are dedicated, and we care about people. This helps us act with high ethics, integrity and professionalism in everything we do. - Cooperation
We always have our minds set on cooperation, between colleagues, as well as with present and presumptive clients and suppliers.
Value proposition
Troax's expertise lies in developing and producing high-quality mesh panel solutions that increase the safety of people, property and processes.
- People
Protect people from production machines in automated environments. - Processes
Protect sensitive processes from human influence through access control. - Property
Safe storage of objects in warehouses and in residential areas.
Financial goal
The company has adopted financial goals, which are presented below, that are linked to Troax's strategic initiative.
- Sales growth
Our goal is to surpass growth within our markets through organic growth, supplemented by selective acquisitions. - Profitability
Our goal is to have an operating profit margin that exceeds 20 percent. - Capital structure
Net liabilities in relation to EBITDA, excluding temporary deviations, may not exceed 2.5 times. - Dividend policy
Our goal is to pay out approximately 50 percent of the net profit in dividends. The dividend proposal must take into account our long-term development potential, financial position and investment needs.
Market segments
Metal based mesh panel solutions are comprised of modules that, in combination with a comprehensive product range of accessories, create tailor-made solutions for Troax's customers. Approximately 95 percent of the mesh panels that are delivered are standard products and the remaining five percent are comprised of specially adapted products.
Machine guarding
Troax’s products within the market segment machine guarding are used in order to protect people from machines and robots in automated manufacturing processes, among others, by limiting access for nonauthorized personnel. As a complement to its mesh panel products Troax offers a fixation system, safety locks and other functions. The customer can combine panels within an application in order to create a complete machine guarding system. Competing products are, among others, electronic and motion-controlled sensors that do not fulfil the safety requirement where physical protection is concerned. Such products are rather regarded as constituting a complement to mesh panel solutions. Many customers prefer physical protection and an entrance barrier, not only for increased safety but also for a protected production process. Other competing products include simple protection for smaller robots that are primarily used within certain parts of the pharmaceutical and electronic industries. Within these market segments, Troax's solutions are currently regarded as being over dimensioned and these are no groups that Troax focuses on today. Read more >>
Warehouse partitioning
Products for warehouse partitioning include storage cages, warehouse dividers, safety brackets and anti-collapse (rack back) panels for pallet racks. Troax offers solutions for the entire logistics flow. The primary use for the end customer is to divide and from safety point of view separate mechanised logistic processes and server halls. The aim is also to safeguard the security levels for personnel working in logistic centres and warehouse. Within the warehouse partitioning market, Troax furnishes mesh panel solutions to a range of different industries. Competing products include low specified products. However, they are not direct substitutes because of their inferior function and strength compared with metal based mesh panel solutions. Read more >>
Property protection
Product development
Troax’s goal is to be leading within innovative mesh panel solutions that protect people, property and processes. In order to achieve our goal, we strive after developing and improving core products and solutions within all market segments. The company bases its development process on trends, as well as analysis of customer needs and requirements. Troax has its own product development department, which together with other departments, continuously works to optimise the company's products and system solutions. Troax Test Center is the heart of our business. Here our products go through tough tests to maintain a high standard.
Regional development
Troax operations are reported as one segment. As secondary information Order intake and Sales are reported based on geographical regions.
Nordic
Troax is represented in the following Nordic countries: Sweden, Denmark, Norway and Finland. Troax’s main production unit and head office are located in Hillerstorp, Sweden.
Continental Europe
Countries where Troax is represented in are in Europe excluding Nordic and United Kingdom. During 2014, Satech was acquired, which is the leading supplier of mesh panel solutions in Italy. The sales volume that is delivered to Continental Europe is produced at the production unit in Hillerstorp, Sweden and Satech’s volumes in Calco, Italy.
United Kingdom
Troax is present in Great Britain and Ireland. Products that are sold in Great Britain are produced at the production units in Kingswinford, England and Hillerstorp, Sweden.
North America
Troax is represented in the USA and Canada. In 2016 Troax acquired Folding Guard, which is one of the leading supplier of mesh panels in the USA. In 2018, Troax Inc. started production in the USA.
New markets
New markets include countries in the rest of the wold including all distributors directly connected to Sweden. The majority of the sales volume is produced at the production unit in Hillerstorp, Sweden.
Customers
Troax has a broad and diverse customer base of around 9,000 customers which include several global corporations. Our customers inclusde retailers, system integrators, OWMS and end-customers.
Value chain
Troax uses a vertically integrated and horizontally focused business model and controls critical parts of the value chain. A high technical competence where it concerns producing high-quality products in combination with a local sales organisation and several distribution centres protects and maintains Troax's strong market position.
Production
Troax's largest and most important production unit in Hillerstorp, Sweden, is highly automated and industry leading. Troax controls its production based upon customer orders and applies the principles of “Lean” production and a simple and integrated production process. Approximately 97 percent of the products manufactured in Hillerstorp are standard products with high warehouse turnover and the remaining three percent is comprised of specially adapted products. Troax is constantly striving to increase efficiency and improve the production process and logistics structure. During 2015 Troax invested in a new powder coating line. It has enabled increased coating capacity, shortened delivery times and improved the flexibility to meet customer’s wishes where it concerns choice of colour.
At Troax’s manufacturing unit in Hillerstorp, more than 1 million metres of metal based mesh panels are produced per year.
Taking responsibility
Honesty, integrity and legal observance is a meaningful part of our corporate culture and in our daily work. Our goal is to work sustainably in the long-term with our environmental goals and to follow these up.
Health and safety
Troax protects people, property and processes, an assertion that applies both to customers and employees. Therefore, Troax has an integrated way of handling health and safety that begins with an introduction programme for new employees and temporary employees. Local subsidiaries are responsible for implementing adapted programmes that ensure the conditions for health and safety follow local rules and regulations. All events and near accidents are reported, measures are taken and follow-up is made in order to reduce the risks of accidents and injuries.Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
Troax's view on CSR (Corporate Social Responsibility) is summarised in two documents: The group’s Ethical Guidelines and Whistle-blower Policy. The content has been presented to and discussed with all employees in the group. Our ethical guidelines/ code of conduct require high business and personal ethics from our employees when exercising their profession. For employees and those who represent Troax, honesty, integrity and legal observance is an important part of our corporate culture and in the daily work.
Environmental impact
Since 2015 Troax has operated a business that is subject to reporting, as required by local environmental legislation and Troax is environmentally certified in accordance with ISO 14001:2004 since 1998.
Troax has carried out comprehensive initiatives in order to minimise the company’s environmental impact and works continuously in order to reduce this. Increased energy efficiency is an important part of our sustainability work.
Read more about Quality and Environment >>
During 2016 an energy mapping was carried out and forms the basis for additionally reducing energy consumption.
A new powder coating plant was installed at the end of 2015 in Hillerstorp, Sweden. On a purely productive level, this is more efficient and we also have less environmental impact through lower energy consumption and less use of environmentally hazardous chemicals. Previously iron phosphate was used as a pre-treatment. Since and including December 2015 our products were pre-treated with a more environmentally friendly technique, which also reduces our energy and water consumption.
Employees
The group’s companies have around 700 employees in 42 countries. Troax sees its employees as a major asset and with different experiences and backgrounds, we create a growing and sustainable business.
The group is characterised by a low frequency of absence and personnel turnover. Each year a training program is arranged where new employees receive an introduction into what the company’s business and goals look like and also receive knowledge about products and sales.
Troax operations are reported as one segment. As secondary information Order intake and Sales are reported based on geographical regions.