Strategy

Alleima’s strategy for profitable growth is focused on the customer segments Industrial Heating, Medical, Chemical and Petrochemical, as well as Hydrogen and Renewable Energy. Business development and growth investments, with complementary strategic acquisitions in selected niches, are key elements of the strategy.

Industrial Heating

Alleima is a market leader in electric heating solutions. The goal is to grow the business through several activities, such as expanding the offering of products that are enabling the transition from fossil-fueled to electric heating solutions. The energy transition is driving demand in several industries where high-temperature solutions play a central role. These include the manufacturing of photovoltaics, semi-conductors and lithium-ion batteries, and the transition in the steel industry. The aim is also to form strategic partnerships and make acquisitions. The purpose is to expand the offering, geographic presence and technical capacity of, for example, large-scale (megawatts) heating solutions for industrial heating processes.

Medical

The aim is to grow in the Medical segment by increasing capacity for priority products such as medical wire for glucose monitoring and catheters. Demand is driven by customers operating in several fields of application for medical technology, such as remote monitoring of patients, cardiovascular devices and neurostimulation applications. Alleima intends to leverage synergies from previous acquisitions and to continue acquiring companies in order to add capacity and capabilities in the Medical segment. The strategy also includes increasing sales of bar and tube products for orthopedic implants where the acquisition of Söderfors Steel has added new capabilities.

Chemical and Petrochemical

Alleima holds a strong position in stainless seamless tubes, which are used in the chemical and petrochemical industry, and intends to strengthen and further develop this position. The strategy is to grow in Asia in particular, by strengthening the local manufacturing capacity of premium products. There is also growth potential in North America through an expanded local production capacity for high-nickel and super austenitic alloys.

Hydrogen and Renewable Energy

A key element of the strategy is to capture market share in the Hydrogen and Renewable Energy customer segment by strengthening the position as a technology-leading partne. Applications in Hydrogen and Renewable Energy require materials that can withstand high temperatures, have high corrosion and pressure resistance, and excellent mechanical properties. Alleima’s existing product portfolio fits in well and meets customer needs. The focus lies particularly on a number of applications that will be significant for the green transition, including hydrogen, solar power, carbon capture and storage, and lithium-ion battery production. Alleima also offers also coated strip steel for hydrogen fuel cells for the transport industry, stationary hydrogen fuel cells and electrolyzers.

Alleima's research organization consists of leading international material experts. The innovativeness of the research throughout the value chain is unique, and Alleima has high expertise in materials technology, modeling and data analysis. The company's experts help the customers choose the right material at an early stage of the process. Due to extensive knowledge of industrial processes and customer applications, Alleima can support customers in their design process and ensure that the right materials are produced and finished for their specific needs. Alleima is focused on broadening and developing the product portfolio in four prioritized growth segments. A major
share of Alleima’s research is conducted with a focus on these segments. At the same time, Alleima is strengthening the core product portfolio by developing capacity, materials and processes.

Energy transition and efficiency

The energy transition requires new technologies for energy storage. These technologies require advanced materials that can withstand extremely high temperatures and corrosive environments. The same applies, for example, to renewable energy sources such as concentrated solar power and geothermal energy. Alleima is thereby a key enabler for the energy transition, where materials technology is crucial. Alleima is helping to improve energy efficiency in the aviation industry, for example, where lighter, corrosion-resistant and stronger materials can make a difference. Another important research focus is the development of large-scale heating solutions for electric process gas heating, which increases energy efficiency and is enabling the transition from fossil fuels.

Alleima works continuously with operational and commercial excellence through continuous improvements in production optimization, inventory control, digitization, automation, pricing and mix optimization. Continuous improvements are achieved by applying a decentralized way of working across the organization, with central monitoring within the Group.

By setting targets for inventory levels and visualization in the value chain, for example, inventory control is continuously improved, which has a major impact on Alleima’s tied-up capital. Various improvements in quality and energy efficiency are pursued locally in the operations, such as "big data" initiatives and the development of new steel grades. Securing price leadership and product mix optimization is an integral part of marketing and sales. Other key focus areas are cost efficiency in production and a high utilization rate for machinery and equipment.

Sustainability is firmly established in Alleima’s operations and integrated with the company’s strategy. The goal is to be an industry leader in sustainability.

Making a difference through the operations

Alleima has been using recycled steel and an electric arc furnace in the production processes since 1929. It is considerably more energy efficient and has a lower carbon footprint than traditional iron ore-based steel production using blast furnace technology. This gives Alleima a strategic advantage in sustainability. The amount of recycled material in the products is 80% and about 96% of the global electricity use is fossil-free, which gives a low carbon footprint.

Alleima is working actively to reduce the environmental impact of the operations and to increase the circularity of raw material use. For Alleima, being an industry leader in sustainability also includes a strong focus on being a responsible employer and maintaining ethical business practices and regulatory compliance. Alleima’s business model is based on a fully integrated value chain, from research and development to end product. This makes it possible to take a holistic approach and to influence and minimize our carbon footprint in all stages of production.

Making a difference through the offering

The main contribution to sustainable development is though the product offering. Alleima is driving the transition to a sustainable society. The aim of the company’s strategy is to grow products and solutions that contribute to the electrification of industries, enable the shift to renewable energy sources, energy efficiency, and innovations in the medical technology industry. New technologies for renewable energy, energy efficiency and electrification require new and more advanced materials, that are lighter and stronger and can withstand extreme temperatures, corrosive environments and high pressure. Alleima works together with its customers to meet their ­specific requirements and challenges, especially when it comes to achieving their sustainability and emissions reduction targets.