Alfa Laval in brief
Alfa Laval is a leading global provider of first-rate products in the areas of heat transfer, separation and fluid handling. With these as its base, Alfa Laval aims to help enhance the productivity and competitiveness of its customers in various industries throughout the world. We define their challenges and deliver sustainable products and solutions that meet their requirements - mainly in energy, the environment, food and the marine industry.
WHAT? - Alfa Laval is a world leader in three key technologies
Alfa Laval's heat exchangers transfer heating or cooling from, for example, one liquid to another. The company's compact heat exchangers have the capability to recycle heat, optimize customers' energy consumption, cut costs and reduce their environmental impact.
The technology is used to separate liquids from other liquids and solid particles from liquids or gases. The offering includes separators, decanter centrifuges, filters, strainers and membranes
Alfa Laval offers pumps, valves, tank cleaning equipment and installation material for industries with stringent hygiene requirements as well as pumping systems specifically for the marine industry and the offshore market.
FOR WHOM? - The company's products are needed in most industries
The need to heat, cool, transport and separate arises in many industries. Take almost any sector: food, energy, the environment, engineering, pharmaceuticals, refineries or petrochemicals - Alfa Laval can help in the majority of them. Customers are reached through three sales divisions: Energy, Food & Water and Marine
HOW? - They are produced and distributed through a shared supply chain
The Operations division is responsible for the Group's production related procurement, manufacturing, distribution and logistics on a global basis. In other words, Operations ensures that anything sold by the three divisions - everything from heat exchangers and separators to pumps, valves and membranes - is produced and delivered in line with the promise made to the customer.
WHERE? - New sales reach more than 100 countries and the aftermarket offering reaches more than 160
Alfa Laval's products, systems and services are sold in more than 100 countries. Around half of all sales are handled directly by the three divisions and the rest via channels such as system builders, external contracting companies, retailers, agents and distributors.
Service and spare parts
Alfa Laval has more than 110 service centers with the capacity to deliver services in over 160 countries. This means that Alfa Laval is close to its customers, ready to help at a moment's notice when the need arises.
IN WHAT MANNER? - Alfa Laval contributes to 15 of the 17 SDGs
All countries are to strive to achieve the UN's 17 Sustainable Development Goals (SDGs) to end poverty, reduce inequalities and solve the climate crisis by 2030. Alfa Laval helps achieve these goals through products and solutions that improve energy efficiency, reduce emissions, purify water, minimize waste and lead to the efficient use of raw materials.
- 39 major production units
- >110 service centres
- Presence in 100 countries
- Sales of about SEK 46.5 billion in 2019
- Operating margin 17.2%
- Aftermarket's share of order intake: 25.7%
- ≈17,500 employees
- >3,700 patents
- A global company, founded in 1883
- Highly engineered products
- Global market leadership
- Large customer and geographical diversification
- Large base of installed products
- Strong brand recognition
Business concept, vision and strategy
To “help create better everyday conditions for people” by offering efficient and environmentally responsible products and solutions in the areas of heat transfer, separation and fluid handling.
Based on its three key technologies – heat transfer, separation and fluid handling – Alfa Laval offers products and solutions that are in line with its business concept: “To optimize the performance of our customers’ processes, time and time again.” In other words, Alfa Laval aims to help its customers become more productive, energy-efficient and competitive.
In order to achieve its vision, implement its business concept and attain its growth, profitability and capital utilization goals, Alfa Laval has established various strategic priorities that encompass customer interaction, a focus on products and working to further strengthen the aftermarket offering.
Read more about Alfa Laval's strategic priorities
To achieve its vision, implement its business concept and attain its growth, profitability and capital utilization goals, Alfa Laval has established various strategic priorities that encompass customer collaboration, a focus on products and working to further strengthen the aftermarket offering.
Alfa Laval endeavours to optimize its customers' processes. Naturally, the company's products play a key role in this. At the same time Alfa Laval endeavours to be a company that is easy to do business with. By meeting the customer's expectations and needs, from the initial contact through the sales process to delivery and even in the aftermarket, the conditions are created for a positive customer experience, making it more likely that Alfa Laval will become their first choice for their next procurement. Alfa Laval works on a broad scale to simplify customer collaboration. One aspect of this involves an organizational structure created to ensure short decision-making paths and thus faster customer contacts. Another involves the establishment of three standardized business models to address customers' differing needs, challenges and purchasing processes.
Alfa Laval's product offering in the three key technologies of heat transfer, separation and fluid handling serve as the foundation for achieving the company's goal for profitable, organic growth. The efficiency and quality of these products are considered - and expected to remain - key criteria for customers who want to improve their competitiveness while reducing their energy consumption and environmental impact. To ensure that Alfa Laval's product offering is constantly one step ahead of its competitors, the company invests approximately 2.5 percent of its sales in R&D. This level reflects an intensification of the company's development efforts in order to increase the number of products launched during the coming years.
The aftermarket - meaning service and spare parts - is a significant part of the company's business. It involves local activity with a global presence comprising more than 100 service centers worldwide. Alfa Laval's products have a long service life, which forms the foundation for a large installed base that - to varying degrees and with varying frequency - requires both spare parts and service. Thus, the installed base has inherent revenue potential that the company aims to capitalize on through various reinforced activities. These may comprise an expansion of additional service centers or the introduction of further automation or standardization of the service execution. Alfa Laval has a comprehensive aftermarket portfolio and can tailor its offering to individual customers. The work to further refine this packaging of aftermarket products will continue, including elements of digitization.
5% Alfa Laval’s goal is to achieve average annual sales growth of at least 5 percent measured over a business cycle.
15% Alfa Laval is to achieve an operating margin – adjusted EBITA – of 15 percent measured over a business cycle.
20% The goal is to have a return on capital employed of at least 20 percent.
For more information on Alfa Laval's financial goals and benchmark values, click here.
Demand for Alfa Laval’s products and solutions in the areas of heat transfer, separation and fluid handling are naturally driven by individual customer requirements, but also by more general external factors. Alfa Laval takes a proactive approach to understanding and analysing these external changes, as well as the underlying dynamics. The goal is to identify existing and potential future requirements and respond to these requirements by having a presence in the right markets and offering the right products. The following description provides an overview of four structural changes that are expected to impact demand for the company’s products.
The world's growing energy demand can be met in two ways - through increased energy efficiency and increased production. Both alternatives generate opportunities which can boost demand for Alfa Laval's products.
Environmental problems arise in the wake of a growing world population and continued urbanization. Alfa Laval's products can reduce emissions, purify liquids and reduce the consumption of water and energy.
Improved living standards
With improved living standards comes changed eating and drinking habits as well as demand for food of better quality. A supplier to the food industry since 1883, Alfa Laval has a long history of providing reliable products for clean applications.
The ongoing globalization means continued demand for transportation. Alfa Laval offers specialized products and solutions, mainly for use on board vessels, but also on trucks.
Driven by development
A constant focus on research and development is and always has been essential for Alfa Laval. This is, without a doubt, the most important condition for the company to be able to deliver products and solutions of the highest quality to industries around the world. The goal is clear; remain a market leader in heat transfer, separation and fluid handling.
Read more about Alfa Laval's research and development
|Standard & Poor's Rating Affirmed On Sound Balance Sheet; Outlook Stable||BBB+||November 17, 2020||download|
|Standard & Poor's||BBB+||July 13, 2020||download|
|Standard & Poor's||BBB+||June 4, 2020||download|
|Standard & Poor's - Outlook revised to negative||BBB+||April 1, 2020||download|
|Standard & Poor's Rating Affirmed On Improving Leverage And Operating Performance; Outlook Stable.||BBB+||May 21, 2019||download|
|Standard & Poor's - Outlook revised to stable.||BBB+||May 23, 2018||download|
|Standard & Poor's - Change to negative outlook from stable.||BBB+||May 20, 2016||download|
|Standard & Poor's||BBB+||May 26, 2014||download|
|Standard & Poor's||A-||April 7, 2014||download|
|Standard & Poor's||A-||May 8, 2013||download|