Arni Sigurdsson, Head of Strategy and Development

MAREL’S MISSION

Marel’s mission is to be the customers’ choice in supplying integrated systems, products and services to the fish, meat, and poultry industries.

Leading Global Provider 

Marel is the leading global provider of advanced equipment, systems and services to the poultry, fish, meat, and further processing industries.  

Marel operates on a dynamic growth market that is driven by urbanization, a steady increase in the number of active consumers worldwide, and a change in dietary habits. Poultry, meat and fish consumption has been increasing by 2-3% annually for the past two decades and is expected to continue at the same growth rate for the next 20 years.  

Food processors worldwide are asking for increased yield and more valuable products, with less usage of water, energy and other resources. They are constantly automating and advancing their operations, leading to 4-6% annual growth in the market in which Marel is leader — providing advanced equipment and solutions for the protein processing industries.

 

Aligning execution and strategy

In order to further align execution with strategy, reduce the fixed cost base and simplify Marel’s organizational structure, the two-year refocusing program “Simpler, Smarter, Faster  was launched in the beginning of 2014.     

Simpler, Smarter, Faster 

The Simpler, Smarter Faster program is fully on track. The Marel team has managed to be at the customer, for the customer while refocusing, resulting in greater customer satisfaction, increased order intake, and improved operational results during the second half of 2014.

Marel is strategically and commercially strong, with a solid portfolio of unique solutions. In order to increase the quality of Marel solutions further, and drive down the fixed cost base, Marel is refocusing its product portfolio and moving from a diverse manufacturing footprint to a few multi-industry sites on global scale.  

At the same time as Marel is streamlining its business, the company continues to invest in innovation and business tools to advance the business. Key growth drivers remain innovation and market penetration that will be supported with “bolt on acquisitions.” Marel’s strongest position is in the poultry and salmon segments, where the company can deliver turn-key solutions. The company will place an emphasis on closing strategic gaps in the white fish and meat segments in order to create further value for customers. Further Processing focuses on the poultry, meat and fish segments, and in these segments Marel supports customers as they transition from volume to more valuable products.

Refocusing on track

The Simpler, Smarter, Faster refocusing program is a two-year journey, with the first half already completed. The streamlining of the operation is fully on track and many important milestones have been achieved already.

The following refocusing actions have been completed:

  • At the customer, for the customer while refocusing. Marel has managed to increase the order intake and order book throughout the year while simplifying and streamlining the organization.
  • The consolidation of several different business units in Marel’s meat segment, resulting in better utilization of resources and increased synergies in Marel’s meat activities.
  • The transfer of salmon activities from Norresundby to a larger and modernized facility in Stovring, Denmark. The transfer was finalized in Q2 and as of Q3, Marel’s salmon operation has been running with increased efficiency.
  • The transfer of Marel’s operations from Oss to the multi-industry site in Boxmeer was completed before year end and will return increased synergies in innovation and sales going forward.
  • The streamlining of Marel’s activities in Further Processing resulting in better utilization of resources and increased synergies in innovation.

The company also announced the following refocusing actions:

  • In January 2015, Marel announced the consolidation of its Des Moines, Iowa manufacturing operation to an existing facility in Gainesville, Georgia. The aim is to capture synergies and increase Marel’s competitiveness by consolidating its manufacturing platform into a few multi-industry manufacturing sites. The transition process began in January 2015, with completion before year end 2015. 
  • In February 2015, Marel announced the divestment of its High Speed Slicing business, in particular the bacon and deli slicing businesses based in Norwich, United Kingdom. Marel will retain the frozen portioning and robotics product families, which remain of strategic importance to Marel.
  • The ceasing of manufacturing production in Singapore will be finalized before mid-year 2015 and will increase operational profit during the second half of 2015 and onwards. Marel is entering into partnership to continue to provide freezing solutions for integrated solutions to its customers.

New organizational blueprint

During 2015, a new organizational blueprint for Marel will be implemented step by step. The new structure will simplify Marel and strengthen innovation, supply chain and sales and service activities across the company. In the new structure, the poultry, fish, meat, and further processing industries will remain the four pillars of the company. These four industries will be supported by the company’s global functions: Supply Chain, Commercial, and Innovation. 

These divisions operate across the industries, creating a solid foundation for increased efficiency, sharing of best practices and optimization of the use of resources. The aim is to serve the customer better, reduce time to market and penetrate markets faster and more efficiently.

The new organizational structure will enable Marel to achieve its goal of becoming a simpler, smarter, faster company.

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€100 Million EBIT in 2017

Marel is entering the second half of the refocusing program and will take further actions in 2015. Management guidance for 2015 is organic revenue growth, with solid increases in operational and net profit. The full focus remains on strengthening the market approach and operational improvement, with the aim of achieving an EBIT of over €100 million in 2017.