ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Other important business segments include automation and service business. The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,400 employees. ANDRITZ operates more than 250 sites in over 40 countries.
- Business Type:
- Industry Type:
- Water and Wastewater
- Market Focus:
- Globally (various continents)
- Year Founded:
- Over 1000
- more than 1,000,000,000 €
International technology Group ANDRITZ ranks among the global market leaders in all five of its business areas. One of the Group’s overall strategic goals is to consolidate and extend this position. At the same time, long-term profitable growth should be secured.
ANDRITZ has the following strategic goals:
1. Take opportunities in growth markets
All five ANDRITZ business areas serve markets with long-term and sustained growth. Within these markets, the Group focuses on rapidly growing segments, such as technologies for energy generation from renewable resources (e.g. hydropower and biomass), as well as stainless steel or special paper grades (e.g. tissue). In terms of global regions, this means consolidating and extending the company’s current strong position in Europe and North America, as well as taking the opportunities available in the emerging growth markets, particularly in South America and Asia.
2. Extend global customer proximity
ANDRITZ serves globally acting companies all over the world. In order to meet customers’ needs as best and as quickly as possible, ANDRITZ has a global presence with more than 180 locations. The Group’s goal is to further strengthen local service presence close to customers, particularly in order to help them achieve their objectives in terms of productivity, profitability, and sustainability.
3. Sales growth of 10%
ANDRITZ has the goal of increasing Group sales by an annual average of 10%, evenly split between organic expansion and acquisitions:
- Organic expansion, mainly through research and development: ANDRITZ is among the technological leaders in all five of its business areas and invests strongly in research and development. On average, approximately 3% of sales are invested in research and development every year, and over 300 employees work in the Group’s research centers. Research and development activities focus on making ANDRITZ the technologically preferred supplier. Thus, the main priority is to develop customized technologies that enhance the productivity of customer’s plants, minimize operating costs, and maximize energy efficiency and environmental protection.
- ANDRITZ is always on the lookout for opportunities to acquire businesses that complement and expand its existing range of products, process technologies, and services. The goal is to be a single-source supplier with full-line capabilities in all business areas.
4. Profitability (EBITA margin) of 7%
ANDRITZ has the goal of achieving profitability (EBITA margin) of 7% on average over the economic cycle.
5. Sustained and consistent dividend policy
ANDRITZ pursues a consistent and sustained dividend policy. The target is to keep the dividend payout ratio by at least 50% and to increase it to around 60% in the long-term.
6. 50% of sales from renewable energies
ANDRITZ’s long-term goal is to generate more than 50% of its sales from products related to renewable energies. The Group has an extensive portfolio of equipment and process technologies used to produce energy from sustainable resources:
- Electromechanical equipment for hydropower stations (particularly turbines and generators)
- Plants for generating energy from biomass, e.g. biomass boilers for the pulp and paper industry or plants for drying and pelleting of biomass
- Plants for production of liquid biofuel, such as biodiesel or bioethanol (second generation)
- Plants for converting waste products into energy sources (waste-to-power)
Sustainability has always been an integrated part of ANDRITZ’s corporate policy.
It is reflected in the daily work of each employee as well as in the management principles and business relationships implemented within the Group. At ANDRITZ, sustainability is a decisive factor in order to be successful in the long term. It is an important element of the company’s corporate policy and strategy.
All business decisions and measures follow the tenets and principles of sustainable development. ANDRITZ works continuously to improve and optimize its actions geared towards economic, ecological, and social sustainability and tries to satisfy the goals and expectations of the various stakeholder groups as best possible, thus creating added value.
Mapping of all relevant stakeholder groups showed that there are almost 40 external and internal stakeholder groups that are affected directly or indirectly by the company’s activities. Their concerns, which were also discussed in face-to-face interviews, form the basis of the materiality analysis and should help to identify opportunities for the company and also any risks at an early stage. ANDRITZ pursues an active communications and information policy to ensure that its dialog with all stakeholders is transparent and based on trust.
The most important stakeholders for ANDRITZ are:
- Customers and business partners
- Press and the media
- Science and research
- Governments and authorities
- Non-governmental organizations (NGOs)
Pursuent to the GRI standard G4, ANDRITZ has prepared a materiality analysis. Based on the ISO 26000 guideline, the manual for corporate social responsibility, the main topics were identified. The topics of compliance, responsible corporate and supply chain management, safety, and long-term customer relationships were rated as being particularly important for the company.
Every day, more than 6,000 ANDRITZ employees are working hands-on in 60 manufacturing and service locations worldwide to produce custom-tailored key components as well as wear and spare parts to suit individual customer requirements for ANDRITZ systems and equipment.
Around two-thirds of the manufacturing staff work in Europe and North America, and one-third in the emerging countries of Asia, South America, and Eastern Europe. They are assisted by trained temporary staff.
ANDRITZ manufacturing focuses particularly on the production of key components critical to technology and quality. Everything else is largely purchased from qualified suppliers who are subjected to regular quality checks and on-time performance monitoring. With this proven make-or-buy strategy, it is easier to deal with changes in capacity utilization and ensure optimum use of own manufacturing capacities.
All manufacturing locations undergo continuous further development so that they can offer customers the best possible technologies. Investments concentrate on building up and expanding manufacturing capacities in the emerging countries of Asia and South America, as well as in Central and Eastern Europe on the one hand, and on modernizing existing locations in Central Europe and North America on the other.
ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting.
The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,200 employees. ANDRITZ operates more than 250 sites in over 40 countries.
Other important business segments include automation and service business. In addition, the international Group is also active in the power generating sector (steam boiler plants, biomass boilers, recovery boilers, and gasification plants) and in environmental technology (flue gas cleaning plants) and offers equipment for the production of nonwovens, dissolving pulp, and panelboard as well as recycling plants.
For many years, the ANDRITZ GROUP has been pursuing a business strategy aimed at achieving profitable growth in the long term. ANDRITZ’s long-term goal is to obtain annual sales growth averaging five to eight percent and to increase profitability (EBITA margin) to eight percent in the medium term.
The main cornerstones of this strategy are: creation of internal and external growth, technological and cost leadership, and global presence.
In order to achieve the long-term sales growth target averaging five to eight percent annually, ANDRITZ continues to focus on organic growth and the acquisition of companies – just as in previous years. ANDRITZ invests around three percent of sales every year, including order-related work, in research and development of new products, with special focus here on IIoT (Industrial Internet of Things).
By offering smart technologies that create added value, ANDRITZ not only helps its customers to achieve their business goals as best possible, but also opens up new sales and growth opportunities in its business areas. Complementary acquisitions, i.e. purchase of companies with complementary products/technologies will continue to be an important cornerstone of ANDRITZ’s growth strategy. By integrating these companies into the Group, ANDRITZ not only creates important synergies, but also paves the way for these companies to achieve organic growth. The Group’s overall goal is to become a full-service provider with global presence in all business areas by developing its own products and acquiring other companies.
Technological and cost leadership
The ANDRITZ GROUP is one of the leading global suppliers in all of its business areas. In order to consolidate and further extend this position, it is essential for ANDRITZ to be the preferred technology supplier while still retaining a competitive cost structure. Thus, the ultimate goal is to offer customers cutting-edge technologies that help them to achieve their goals in terms of productivity, quality, resource and energy efficiency, and sustainability. At the same time, it is necessary to create a cost structure within the Group that secures ANDRITZ’s competitive position and continued existence in the long term. The main cornerstones here are ongoing cost optimizations and a manufacturing and location concept aligned to future market opportunities that take account of regional cost and competitive advantages.
The ANDRITZ GROUP’s goal is to increase profitability and achieve an EBITA margin of eight percent in the medium term. In addition to the cost leadership targeted, this goal is to be achieved by means of planned sales growth and substantial expansion of service business from the current level of 32 percent to 40 percent in the long term.
With a balanced mix of global and local presence, ANDRITZ can support its customers in achieving their goals in terms of productivity, profitability, and sustainability. It is thus one of the ANDRITZ GROUP’s main goals to continue extending its worldwide presence in order to utilize growth potential on the one hand, particularly in the emerging economies of South America and Asia, and on the other hand to be close to its customers in order to be able to offer the best possible service. Due to the planned further relocation of manufacturing capacities to emerging markets, ANDRITZ can profit from growth in these regions, but also be a strong impetus for economic growth and the labor market there.
The cornerstone of today’s international technology Group ANDRITZ was laid in 1852 when a small iron foundry was set up in Graz, Austria.
The milestones in the history of ANDRITZ are outlined here.
ANDRITZ AG has its origins in an iron foundry that was established in 1852 by the Hungarian entrepreneur Josef Körösi in Andritz, a suburb of the city of Graz. Soon after its foundation, the company’s production program was extended to include large capital goods, such as cranes, pumps, water turbines, and later also bridges, steam boilers and engines, as well as mining equipment.
At the end of the First and Second World Wars and during the Great Depression in the early 1930s, ANDRITZ’s production came to a standstill, but the company’s dedicated management and employees succeeded each time in making a new start.1946-1980:growth and new products
In 1949, ANDRITZ began a lasting cooperation with the Escher Wyss Group of Switzerland, initially in the water turbines sector. The product portfolio of ANDRITZ was revised: Production of steam engines and air compressors came to an end, and the focus shifted towards water turbines, centrifugal pumps, cranes, and steel structures. In 1951, ANDRITZ embarked on the production of complete paper machines in cooperation with Escher Wyss.
In 1950, Creditanstalt-Bankverein, Austria, acquired a majority interest in ANDRITZ.
During the 1960s and 1970s, ANDRITZ continued to grow. The production shops were extended, new machines purchased, and research and development activities intensified. Electrochemical and metallurgical equipment were added to the production program.
The second global oil crisis and worldwide economic stagnation in the early 1980s caused a drop in ANDRITZ’s order intake and the company was operating at a loss, but Austrian government subsidies and drastic rationalization measures enabled the company to survive.
In 1987, AGIV AG, an investment company in Frankfurt, Germany, acquired a majority stake in ANDRITZ. ANDRITZ began to change its strategic direction, from being a licensee of other equipment manufacturers to become a leading international supplier of its own high-tech production systems.1999:change of ownership
AGIV AG sold its shareholding in ANDRITZ to a consortium of investment companies (The Carlyle Group, GE Capital, Unternehmensinvest AG, Deutsche Beteiligungs AG) and the Custos private foundation (established by Wolfgang Leitner, President and CEO of ANDRITZ).2001/2003:listing on the Stock Exchange
In 2001, ANDRITZ went public on the Vienna Stock Exchange. Two million new shares were placed successfully with national and international investors.
2003 saw the Secondary Placing of ANDRITZ shares on the Vienna stock exchange. The financial investors sold their entire shareholdings in ANDRITZ, which resulted in a rise in free float to around 70%.
In 1990, the acquisition of Sprout-Bauer, a US company supplying equipment for mechanical pulp and animal feed production, marked the beginning of the Group’s successful expansion policy through acquisitions. Complementary acquisitions, in addition to organic growth that is mainly driven by research and development, have been an important driver of company growth ever since.
Since 1990, ANDRITZ has acquired and integrated almost 70 companies, pursuing its policy of complementary acquisitions. The largest transactions in terms of sales were the acquisitions of Ahlstrom Machinery Group in 2000/2001 (making ANDRITZ a globally leading supplier of pulp production systems), of VA TECH HYDRO in 2006 (advancing ANDRITZ to a globally leading supplier of electromechanical equipment for hydropower plants), and of more than 95% of Schuler, the world market leader in forming technology, in 2013.ANDRITZ today
ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Other important business segments include automation and service business. In addition, the international Group is also active in the power generating sector (steam boiler plants, biomass boilers, recovery boilers, and gasification plants) and in environmental technology (flue gas cleaning plants) and offers equipment for the production of nonwovens, dissolving pulp, and panelboard as well as recycling plants. The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,200 employees. ANDRITZ operates more than 250 sites in over 40 countries.