Exel Composites launched a new strategy to become a more integrated designer and manufacturer of pultruded composite solutions for volume and customer-specific applications. This transformation will enable Exel to grow and to create more long-term value for stakeholders. Exel will also reorganize its operations to improve performance and support growth.

The actions to be taken will enable Exel to achieve over EUR 200 million in annual revenue and double digit adjusted operating profit margin within the next five years. According to the new strategy, Exel will increase its efforts in large and fast-growing energy transition and decarbonization applications driven by sustainability needs. Increased focus will be placed on industries that have strong growth potential with more standardized and higher volume product needs, such as wind power, building, infrastructure and transportation.

To complement the growing volume applications business, Exel will further develop its successful custom profiles business. In this business Exel will continue to take advantage of its long R&D experience and strong product know-how to help customers innovate and integrate the use of the composites in existing and new applications. The custom profiles business will also function as an important channel to funnel new opportunities to the volume business when an application grows and demands higher manufacturing volumes.

To ensure increased customer-facing work and efficient operations, Exel will be organized into two dedicated customer-centric business units, one concentrating on volume and the other on custom solutions. Volume product customers Exel will serve with dedicated account management teams and from factories that are highly effective in running continuous production. Specialty and custom profile customers Exel will serve through its regional sales network and from a global network of factories optimized for tailored production.

In both of these business units composites solutions design and development capabilities will be increased to ensure that customers can easily choose and use composites in their applications. The factory footprint will be organized to support the needs of the new business units. In the new strategy, Exel is reassess its factory footprint and aim for larger production units which are scalable, more efficient, and better resourced.

The redesigned factory footprint will offer customers the most appropriate production network, while allowing Exel to focus and scale up its operations as well as allowing investments in needed design and engineering capabilities. As part of the process to reassess the factory footprint, Exel is planning to start a strategic review in three factories to define their role and necessity in the new operating model. More details and decisions from the strategic review of the factory network will be announced as the planning proceeds.

The new operating model with two distinct business units will be implemented from the beginning of 2024.