Page 16 - KWH Annual review 2017

Strong growth in all market areas
In 2017, Mirka’s global growth was signi cantly stronger than the industry average. Our sales have grown exceptionally well, particularly in the EMEA area (Europe, the Middle East and Africa) where
we gained market share. The positive trend in the EMEA area re ects the sharp growth in demand for electrical sanding tools. In the Middle East, we grew more slowly than in the other countries in the EMEA area, due both to the general market situation and the trend in oil prices. In the Asia- Paci c Region, we also succeeded in taking market share, despite challenging competition and changed market structures. In North and South America, our sales have also performed better than in the previous year, even though the slow growth in the car market is re ected in results. The downside of having a global business operation
is that exchange rate uctuations have had a negative impact on our results.
Organizational change ensures future growth
Rapid and strong growth, new business areas and changes in global markets demand that the business becomes more exible and reacts more quickly. In 2017, we implemented the largest organizational change in our history.
Mirka has had small-scale commercial operations in the precision industry for several years, but a traditional organizational structure and a limited product portfolio have hindered growth. Thanks to the new dynamic organizational structure, we are now in a position to develop this business area further. The acquisition of CAFRO S.p.A in June 2017 will also open new doors in the precision industry. CAFRO is a leading manufacturer of Diamond and CBN (Cubic Boron Nitride) wheels
as well as PCD (Polycrystalline Diamond) and PCBN (Polycrystalline CBN) tools. The acquisition of CAFRO is a corner stone in the portfolio we are now building in the area of precision grinding.
Digitalization provides new tools for our customers and helps us streamline our operation. In 2017, we launched the myMirka mobile app which users can connect to their Mirka sanders via Bluetooth. The app enables users to measure the machine’s vibration levels in real time and to carry out the warranty registration quickly and smoothly. Through the myMirka platform, it is also possible to purchase additional services. Mirka’s digital development also opens new opportunities for customer service and data analysis.
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