The requirements and demand for sustainable technical solutions are always increasing. This creates business opportunities for Addtech, as well as future value for our customers and for society in general.
On a daily basis, Addtech’s 140 subsidiaries endeavour in different ways to help customers identify the best and most sustainable technical solutions. This applies both to improving customers’ operations and to contributing to various benefits for society – such as reduced CO2 emissions, more energy-efficient transport, renewable energy production and safer workplaces. The subsidiaries operate in many different areas of technology and have great opportunities to be a catalyst for development towards a more sustainable society. This includes leading technical solutions for electrification, automation, Industry 4.0, infrastructure, medical technology and expansion of national power grids.
Addtech’s companies are skilled in quickly identifying and monitoring the key technical trends driving sustainability development. Electrification is one of today’s strongest trends, generating opportunities for our business areas. Here, we are contributing to renewable electricity generation by, for example, offering components for wind turbines, hydroelectric power plants and by delivering equipment for the distribution grids transporting the electricity.
Necks Electric, part of the Energy business area, is one of the successful Addtech subsidiaries working to improve efficiency in grid construction. In recent years, the company has captured a position as an important player behind Sweden’s successful expansion of the electricity grid at the pace needed to cope with the growing demand.
“The Swedish electricity grid faces major challenges in facilitating the country’s successful switch to renewable and fossil-free energy,” - says Marcus Johansson, Managing Director of Necks Electric. Major investments are required now and far into the future to meet existing electricity needs. The need for electricity is constantly increasing due to electric cars and large data halls, for example, which require an enormous amount of power.
Necks is a complete supplier of materials for electricity distribution, transmission and transformer stations. These include, grid pylons and insulator accessories – from the foundations for power lines, all the way up to the transmission lines. With own production in Poland and partnerships with other suppliers around the world, Necks can offer a comprehensive solution, from the production of materials, to their delivery.
“I dare say that without Necks in the Swedish market, it would be difficult to expand the electricity grid to the necessary extent. We deliver products crucial in enabling a continued high rate of investment in the Swedish electricity grid. Major investments have been made, and are being made, in the electricity grid and we have been highly successful in our sales efforts to secure these transactions,” says Marcus Johansson.
An example of a product contributing to efficient network construction is Necks Electric’s complete system of steel lattice utility poles. The concept encompasses three families of lattice utility poles optimised to provide the lowest possible overall cost for power line construction with steel poles. Their lattice structure means that the poles blend into their surroundings to some extent. The corridor is also narrowed by four meters compared with the usual horizontal distribution of the power lines.
“Our lattice poles have been developed to streamline and replace traditional power line construction,” Marcus Johansson explains. “The poles are recyclable and have a very long service life. We are not limiting us to this, however, and are now developing the next generation of lattice poles in an alternative material to reduce the carbon dioxide footprint.”
Most Addtech subsidiaries would agree that their customers’ sustainability requirements are continuously increasing. “We have definitely noticed that customers are imposing stricter demands for sustainable solutions. For us at Necks, sustainable operations contribute to a more sustainable world. Today, you must be focused on sustainability to be successful in business. We are always trying to stay one step ahead of our competitors on technical development. Here, it is also important that we take responsibility for our suppliers’ meeting the customers’ sustainability requirements. Grid operators should feel secure when buying our products and solutions,” Marcus Johansson concludes.
Another company focusing on sustainable operations is Recab, part of the Automation business area. The company currently offers a number of products and solutions in industrial automation, often in close collaboration with customers. One example is the customer FluxSense, a spin-off from a research project at the Chalmers University of Technology in Gothenburg, which offers systems for the direct analysis and follow-up of air emissions from industry or other operations.
“This systems solution really goes hand in hand with the objectives of the Paris Agreement from 2015, the core of which is to limit global warming by reducing greenhouse gas emissions,” says Annelie Ivansson, Marketing Manager at Recab. Industries can use the system to make measurements, both mobile and stationary, to identify deviations in their emissions or to determine if there is a leak somewhere in their processes. Recab’s role and contribution to the solution is to provide reliable industrial computers that match the advanced technical level of the system.
“The industrial computers we deliver are subject to extremely high requirements,” says Annelie Ivansson. Among other things, they have to withstand high temperatures and relatively strong vibrations, something that an ordinary computer cannot handle. The market is global and the solution is at the forefront of technical development in the area.
Insatech A/Sis located about an hour’s journey southwest of Copenhagen. The company is part of the Industrial Process business area and sells advanced instruments for all industrial segments. Increasingly, Insatech is investing in developing own technical products and solutions. RemUVe is an example of an own product developed in collaboration with the Danish Ministry of the Environment.
“RemUVe is a water purification system that efficiently filters drinking water and ensures that it is of superior quality,” says Jacob Møller, Managing Director of Insatech. We apply an advanced oxidation process based on UV light and hydrogen peroxide to create a reaction that removes pesticide residues, chlorinated solvents and drug residues – while protecting against bacteria. Insatech focuses on two main areas to promote sustainable development: partly on reducing the carbon footprint of the maritime sector, and partly on clean drinking water and waste water.
“When it comes to RemUVe, our primary customers are municipal or regional water and sewage companies. Mainly here in Denmark, although we are also seeing considerable interest from other countries in northern Europe. In the slightly longer term, we will migrate the RemUVe technology to industrial manufacturing processes. Insatech wants to be able to contribute to a changing and more sustainable world by offering value-generating cutting-edge technology that leads to profitability and sustainable operations,” Jacob Møller concludes.
Addtech conducts a broad range of operations, in terms of both customer segments and geographies. This enables the Group’s stable development by smoothing out transaction fluctuations over a business cycle.
Each year, Addtech calculates the overall percentage of existing operations that in some way contribute towards the UN’s global goals. For 2020/2021, these accounted for 50 percent of total sales, which is an increase from 40 percent preceding year. More information about this calculation can be found in the Sustainability Facts.
Target for sustainable business
Addtech target
100%
of sales contributing
to sustainable
development by 2030
| Economic societal value 2020/2021, SEK MILLION | ||
Financial value generated | 11,336 | |
| Financial value distributed | 10,977 | |
| -Of which, manufacturing costs | 8,221 | |
| -Of which, salaries and remunerations (salaries, pensions, payroll taxes, social security contributions) | 2,102 | |
| -Of which, disbursements to creditors | 65 | |
| -Of which, disbursements to shareholders (pertains to dividends) | 269 | |
| -Of which, disbursements to governments (tax) | 320 | |
| Remaining in the company | 359 | |
The world is constantly changing. And we are changing with it. During the year, for example, the prevailing pandemic has accelerated the digitalisation of society and, like climate change, this now permeates virtually all trends in the field of technology. As an increasingly international Group, we must understand the world around us to stay one step ahead and remain competitive. Development in our business areas is driven both by major megatrends and smaller niche trends. Below, we list five examples of important trends affecting Addtech’s operations.
Electrification
A large part of the solution in the transition to a fossil-free society is to electrify more. This trend is global and affects the energy-intensive transport and process industries in particular.
Renewable energy
A global transition to renewable energy, with solar, wind and hydroelectric power, combating the climate threat.
Power grid expansion
Expansion of the national power grid is a priority issue in many countries in responding to increased needs for electricity.
Industry 4.0
or the fourth industrial revolution is a collective term for a range of technologies and solutions in areas such as industrial automation and industrial IT.
Smart cities
In a smart city, technology is used, among other things, to improve quality of life and the efficiency of the city’s functions in achieving economic, social and environmental sustainability.