A WORD FROM THE CEO
The market recovered in the spring and TransLink reached all-time high in revenues 2015.
The legislative decision to increase load weights from 60 to 64 ton was implemented June 1st by the Swedish Transport Administration. The long awaited decision released a piled up trailer demand in the market. Order intake, particularly in the Forest segment, increased and the export break-through in Finland 2014 continued to move into solid ground.
The Service segment picked up early summer 2015 and has continued to strengthen. Cost and capacity control has, however, been challenging and the expected recovery of the Service division did not take place until late autumn. Customers are, however, comfortable with our offer and performance. The top 20 customers accounting for >40 % of revenues, have increased their business significantly and continue to place more business with us.
Roger Hjerth, CEO
IMPORTANT EVENTS IN 2015
- The conversion of MST AB to a high end service shop and the transfer of production to Kilafors have been very successful. Capacity utilization at Kilafors reached all-time high levels and service revenues at MST were doubled.
- TransLink has introduced a new version of a tip trailer for the Infrastructure market enabling higher load weights and developed and sold its first body structures for timber trucks.
- In order to focus and develop the full potential of the Service and OEM divisions, the board has decided to split TransLink into two separate companies as from Jan 1 2016.
FAIRFORD ́S VIEW
Looking at the Translink industry we see a playing field of Davids and Goliaths where supplier and end markets are characterised by large consolidated players exercising their relative power upon the value chain as a whole. Translink has during the years consolidated several minor players to try to level out the balance with some success. However, the general market downturn since the crisis has hit the company and also the rest of the industry causing a significant extension to the planned timeline. Translink Group currently consists of two divisions, the OEM division (production of trailers and body structures) and the STS division (Service), and the decision has now been made to split the combined entity into two stand alone units. We believe this will add focus for each business and we are motivated to enhance efforts to accelerate each business plan.