STRATEGY

VISION - The Knowledge Company

It is KWH’s mission to develop knowledge-intensive, highly focused and service-oriented niche operations.

The niche operations in question must take into account the real conditions in the sector concerned and should be built up around a unique product, process or market position that confers long-term competitive advantages. The operations in question are mainly business-to-business and internationally competitive.

Our intention is to develop these operations, based on traditional KWH sectors where we have a solid familiarity with the field, a solid strategic position and a strong sectoral presence. In so doing, KWH will be working within its framework as a diversified international industrial group whose core business is the manufacture of plastic products and coated abrasives and the provision of logistics services.

 

Independent Divisions

The KWH Group has three divisions which act as sectoral sub-groups. The divisions, KWH Mirka and KWH Logistics, act as specialists in their respective sectors. Other operations (Prevex and strategic holdings) are organized within a business development division called KWH Invest.

The task of the divisions is to independently develop their operations according to their own and KWH's goals and operating principles. This development should primarily take place within the framework of each division’s own resources. In certain cases divisions within the Group can be given additional resources if the Group management decides to allocate resources to specific development operations which are felt to be important for the Group as a whole.

Central Resource Allocation

The role of the parent company, KWH Group Ltd, in the Group is to decide on the overall goals and operating principles of the Group and its divisions, to make decisions on central resource allocation and to supervise the operations of the divisions.

Leading Companies In Their Field

The divisions should all be among the leaders in their field in the international markets and in their chosen product segments. Operations are built up using niche strategies in the areas where their strengths lie, where they possess unique expertise or a unique market position and which offer a competitive edge on the international market and scope for expansion.

Active Pursuit of Renewal

In order to apply niche strategies and to attain leading position in our mature markets we must pursue intensive and long-term development operations which enable us to adapt, produce business renewal and develop operations through our unique expertise. This active renewal, adaptation, restructuring and development process is expected to create a solid foundation for future growth and profitability allowing us to attain our ambitious economic targets.

Solid and Lucrative

The main economic long-term goals for the Group as a whole are about 50% solvency, a gearing ratio of about 40%, an average of at least a 15% return on capital with 20% as the target level and long-term growth of 5-10% p.a., and a positive cash flow until the solvency target has been reached.

After this, profitable growth and renewal on the basis of our unique expertise in accordance with the criteria in “KWH The Knowledge Company” will be prioritized.

Trends and target attainment may vary among the individual divisions and from one year to the next but the key economic minimum targets, as well as other targets and operating principles set down in this policy document, should be reached by each of the sub-groups in the long term.

Effective Management

Effective Management and Proper Risk Management

Our challenging economic targets and ambitious operating principles place great demands on our management systems. In KWH, we constantly allocate adequate resources for effective planning and proper risk management and avoid all speculation. As an instrument in support for this, we maintain adequate quality management and risk management systems aimed at implementing the goals and principles in “KWH The Knowledge Company”.

Cooperation and Social Responsibility

The operations of the Group are fundamentally based on openness, honesty, trustworthiness, legitimacy, fairness and foresight.

These criteria apply to all relationships with customers, suppliers, authorities and company employees, as well as products and the environment. We hope to ensure smooth interaction with our staff, partners and stakeholders and a good ethical standard in our operations generally.

Self-Sufficient Family Business

KWH is a family business which primarily relies on its own resources and funds generated by operations for its development. When needed, we can acquire extra competence and resources externally through co-operation agreements and other arrangements.