{"id":10148,"date":"2024-07-23T11:30:00","date_gmt":"2024-07-23T09:30:00","guid":{"rendered":"https:\/\/sw.fst.com\/magazine\/?p=10148"},"modified":"2024-07-24T16:12:07","modified_gmt":"2024-07-24T14:12:07","slug":"top-strategic-initiatives-2024-2026","status":"publish","type":"post","link":"https:\/\/sw.fst.com\/magazine\/en\/2024\/07\/top-strategic-initiatives-2024-2026\/","title":{"rendered":"Top Strategic Initiatives 2024\u20132026"},"content":{"rendered":"\n

Every three years, Freudenberg Sealing Technologies (FST) publishes a new strategy that takes effect during that time period. The current strategy period began in January 2024. It mainly focuses on six different areas. More detailed explanations of the graphic below can be found on the following page.<\/p>\n\n\n\n

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01. Execute Project \u201cOvid\u201d<\/strong><\/p>\n\n\n\n

Execution of Project \u201cOvid\u201d through gaining >200 m\u20ac new business, reduce ICE business >200 m\u20ac while making adjustments with structural changes.<\/p>\n\n\n\n

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02. Operational Excellence<\/strong><\/p>\n\n\n\n

Execute refined FST Operational Excellence \u00adapproach: e.\u2009g., Design for Six Sigma, secure \u00adMaterial Availability, Automated Vision Control Systems, End-to-End Processes, streamline SG&A costs through process adjustment (F3 \u2013 FitForFuture).<\/p>\n\n\n\n

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03. Service Business Expansion<\/strong><\/p>\n\n\n\n

Extend service business through global M&A strategy \u00adfocusing on Process Industries, Industrial Distribution and Automotive Aftermarket.<\/p>\n\n\n\n

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04. Regional Balance<\/strong><\/p>\n\n\n\n

Solidify Regional Strategy for Southeast Asia with initial focus on Industrial Distribution and \u00adAutomotive Aftermarket.<\/p>\n\n\n\n

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05. Sustainability<\/strong><\/p>\n\n\n\n

Continue to reduce CO2 footprint, energy consumption and engineered waste.<\/p>\n\n\n\n

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06. Material Science<\/strong><\/p>\n\n\n\n

Focus material science on: PFAS alternatives, \u00admaterial developments for New Energy\/Mobility (Quantix\u00ae ULTRA, TIM, Electric Conductive Material, EMI, etc.), interchangeability of key ingredients.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

What is behind the six core initiatives of the Strategy Period 2024\u20132026?<\/h2>\n\n\n\n
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ON 01. Execute Project \u201cOvid\u201d<\/strong><\/p>\n\n\n\n

Ovid, the strategic and transformational project, analyzed the core markets and industries of Freudenberg Sealing Technologies (FST) up to the year 2035. The goal: define how the company can be transformed in its product portfolio, processes, and structures in light of the expected market changes. The shift to electric mobility has had a major impact on FST and its key industries. Revenue from products for internal combustion engines will fall dramatically. New developments, such as thermal barriers, busbars, cell caps and sensors for waveguide antennas, are expected to offset the decline.<\/p>\n\n\n\n

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ON 02. Operational Excellence<\/strong><\/p>\n\n\n\n

To achieve operational excellence at every level, it is essential to act on multiple fronts. This includes using new methods of continuous improvement, the reliable availability of materials, automated vision control systems, reduced administrative costs, and improved end-to-end processes. This refers to processes composed of all the chronologically sequential sub-processes that are essential to fulfill a specific customer request. That means everything from the incoming order to payment and the management of the product lifecycle.<\/p>\n\n\n\n

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ON 03. Service Business Expansion<\/strong><\/p>\n\n\n\n

FST has committed to an expansion of its \u00adservice business. Acquisitions to \u00adstrengthen its global position are part of the plan. The current focus is on the process industry, trade with distributors, and the independent \u00adautomotive spare parts market.<\/p>\n\n\n\n

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On 04. Regional Balance<\/strong><\/p>\n\n\n\n

FST has selected Southeast Asia as the focus for its new strategy period. Already strong in China and India, the company is rebalancing its business activities in Asia by building up its presence in other high-priority locations, such as Singapore, Thailand, Vietnam and Malaysia. FST is developing additional markets without losing sight of existing markets or retreating from them.<\/p>\n\n\n\n

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On 05. Sustainability<\/strong><\/p>\n\n\n\n

FST wants to help bring an end to climate change and has ambitious goals in this regard. The company will reduce its relative CO2 emissions \u2013 measured in tons per million euros of revenue \u2013 by 30 percent over the period from 2020 to 2025. It plans to draw electricity exclusively from renewable sources by 2030 and be a climate-neutral company by 2045. These climate goals can only be achieved if FST is able to reduce energy use quickly by optimizing its products and technologies, decreasing waste, and improving the energy efficiency of its buildings, all on an ongoing basis.<\/p>\n\n\n\n

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On 06. Material Science<\/strong><\/p>\n\n\n\n

The European Union is considering restrictions or a ban on the use per- and polyfluoroalkyl substances, which include the fluoropolymers FKM and PTFE. FST derives a significant share of its revenue from products containing fluoropolymers that fall into the PFAS category. If the use of this substance group is restricted, FST will have to quickly find substitutes.<\/p>\n\n\n\n

FST has an extremely wide-ranging portfolio of raw materials \u2013 with a correspondingly high cost of procurement and administration. So the company is addressing how it can standardize these resources to a greater degree. This is essential to reduce complexity.<\/p>\n\n\n\n

FST is contributing to the transformation of the energy and mobility sectors by bringing out new materials. For example, one of its new material classes is Quantix\u00ae ULTRA. It greatly improves fire protection in the powertrains of electric vehicles. Highly heat-resistant, Quantix\u00ae ULTRA will not melt at temperatures up to 1200 \u00b0C.<\/p>\n<\/div><\/div>\n\n\n\n

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How is a strategic plan developed?<\/h2>\n\n\n\n

In all, the planning process takes 12 to 18 months. During this period, the \u00admarket trends and drivers that influence the Freudenberg market environment are \u00adanalyzed, and long-term economic indicators are reviewed. Drawing on this \u00adinformation, the company defines its goals for the next three years.<\/p>\n\n\n\n

A video series in the FST portal<\/a> provides more \u00adbackground information on strategy development.<\/p>\n<\/div><\/div>\n

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\r\n \r\n <\/i>\r\n <\/a>\r\n <\/span>\r\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"

Every three years, Freudenberg Sealing Technologies (FST) publishes a new strategy that takes effect during that time period. The current strategy period began in January 2024. It mainly focuses on six…<\/p>\n","protected":false},"author":3,"featured_media":9946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[91],"tags":[654],"powerkit_post_featured":[],"class_list":["post-10148","post","type-post","status-publish","format-standard","has-post-thumbnail","category-strategy","tag-edition-03_2024-en"],"_links":{"self":[{"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/posts\/10148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/comments?post=10148"}],"version-history":[{"count":2,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/posts\/10148\/revisions"}],"predecessor-version":[{"id":10241,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/posts\/10148\/revisions\/10241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/media\/9946"}],"wp:attachment":[{"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/media?parent=10148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/categories?post=10148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/tags?post=10148"},{"taxonomy":"powerkit_post_featured","embeddable":true,"href":"https:\/\/sw.fst.com\/magazine\/en\/wp-json\/wp\/v2\/powerkit_post_featured?post=10148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}