Glaston Corporation, a global leader in glass processing technologies, adjusts its strategic targets in response to evolving market dynamics and global economic changes.
Glaston Corporation, a frontrunner in glass processing technologies, is recalibrating its strategic trajectory to align with evolving global economic landscapes. The Board of Directors has greenlit adjusted net sales and return on capital employed (ROCE) targets, extending the timeframe for strategic goals to the medium-term (3−5 years). This decision comes in the wake of significant shifts in the global economy and a softening of Glaston’s addressable markets since the last strategy update in August 2021.
The revised net sales target anticipates an annual average growth surpassing that of the addressable equipment markets. Glaston aims for a comparable ROCE above 16%, while maintaining an unchanged target of a 10% comparable operating margin (EBITA). The company foresees the architectural glass processing market gradually recovering, with a projected growth from -6% in 2023 to approximately 5% during 2025−2026. The mobility, display, and solar glass processing markets are expected to exhibit robust growth, exceeding 5% annually.
Antti Kaunonen, Interim CEO of Glaston Corporation, expresses confidence in the strategic approach, emphasizing the focus on customer experience and sustainability in technology and process development. Kaunonen notes, “Prioritizing our strategic actions and keeping sustainability at the core pave us a good path toward achieving our strategic targets.”
The article delves into Glaston’s plans for addressing growth and profitability, emphasizing the company’s alignment with megatrends such as climate change and increased demand for energy-efficient solutions. Glaston’s CHF Solar offering for solar glass processing is highlighted as a response to the growing demand in the solar market.
A shift in the market situation in China is acknowledged, with a reduction in Glaston Group’s net sales share from China in 2023. However, strategic investments and developments in the Chinese operational structure have led to a recovery in China’s order intake. Glaston remains optimistic about China as a growth market for selected products and seeks opportunities for China-made offerings in price-conscious regions.
The article outlines Glaston’s commitment to technology leadership, detailing plans to continue investing in product development and potential expansion of Insulating Glass line production capacity. Glaston’s focus on customer satisfaction is underlined, with plans to enhance feedback processes and cover the entire customer lifecycle starting in 2024.
Glaston’s organizational changes to accelerate strategy execution and improve customer experience are discussed, along with ongoing efforts to leverage global benefits of scale and enhance operational efficiency. The company’s interest in industry consolidation and strategic partnerships in the fragmented glass processing technologies industry is also highlighted.
The article concludes with insights into Glaston’s sustainable business practices, emphasizing the importance of knowledgeable and engaged employees. Glaston’s targets for employee engagement, zero lost time accidents, and greenhouse gas emissions reduction are outlined, reflecting the company’s commitment to safety, employee well-being, and environmental responsibility.
Source: Glaston Corporation with additional information added by GlassBalkan
