Page 6 - KWH Annual review 2017

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HIgH expectAtIons AcHIeved
t he KWH Group achieved the high expectations set for 2017. Turnover increased
by 18%, and pro ts reached the record level we had been hoping for. All the business units, Mirka, Logistics and Invest, reported excellent growth. The KWH Group is now reaping the bene t of a successful product and services development approach in which we focus on the customer.
Despite investment in technical improvements through automation and robotization, the need for quali ed personnel has increased. During the year, the workforce increased by around 230. Through continued active recruitment of key resources, as well as continued investment in staff development, we can ensure that we have the necessary personnel resources and expertise available to meet the demands of the business environment of the future, characterized by digitalization and rapid technical development.
the global economy is di icult to predict
Even though the political and geopolitical situations remain unstable, the global economy
is in a strong phase of the economic cycle. For the moment, the economic climate appears to
be good, but there are many hotspots which could rapidly have a negative impact. We can expect political concerns and increased risk of trade restrictions. In addition, the consequences of the central banks’ careful steps towards a normalization of monetary policy are generating uncertainty about the sustainability of prosperity.
For an export-dependent company such as
the KWH Group, it is essential to maintain competitiveness in the labour market in Finland. Our competitiveness has improved, partly because of the Competitiveness Agreement and partly because of the trend in labour costs in the most important competitor countries. At present, a shortage of labour appears to be a major threat and a limiting factor for economic progress in many countries.
Striving for constant renewal
All our business groups are planning for continued stable growth. The Group’s substantial investment of EUR 53 million during 2017 is further proof
of our strong belief in continuing growth in the future. The integration of the latest corporate acquisitions, the Italian company,
CAFRO S.p.A. (Mirka) and the Polish company, Winkiel Sp.z o.o. (Prevex) will continue and strengthen development within Mirka and Prevex. Our long-term strategies are built on exibility, constant renewal through dynamic innovation and readiness to transform our operation rapidly in response to the demands we face.
We expect organic growth to remain good, while we search out new complimentary operations which can be slotted in to one of our three core areas, Mirka, Logistics or Prevex. The KWH Group has the nancial strength required to increase the rate of progress if new investment opportunities arise.