In search of excellence Elmo

IN SEARCH OF EXCELLENCE

Since the founding of Elmo in 1931, the company has grown to become a leading manufacturer of exclusive leather to the furniture and automotive industries. Abigail Saltmarsh reports on its drive to be even better.

Elmo is known across the world for its high quality, exclusive products but, says sales and marketing director Jimmy Ahlgren, the Swedish company is constantly looking for ways to improve its offering and make better use of the raw hides it buys in.

“If we buy raw hides, statistically a small percentage will be of a standard that can be used in high quality furniture,” he explains. “A further percentage is still pretty good and we can make use of it in leather for other uses – but the majority is of a much lower standard.

“What we need to do now is to find more uses for that leather. We always seek a balance between the leather we supply for the furniture industry and that which can be used by other industries. We need to supply our products to a greater mixture of industries.”

Now more than 80 years old, the company is renowned for its expertise in the leather business. It supplies products for the furniture and automotive sectors as well as for the aviation, rail and marine industries.

“We buy the raw hides from dealers. We tan and finish the product, and about 90 per cent of it leaves us as leather hides, although we do offer added services, such as cutting,” says Mr Ahlgren. “Mostly our customers will be cutting the leather for seats, whether that is for residential furniture, restaurants and hotels, or for automobiles, aircraft, trains and cruise ships.”

Investing in Elmo

From its production facilities in Svenljunga, as well as sales offices in New Jersey, USA and in Hong Kong, Elmo sells to customers in about 45 markets worldwide.

“We export about 95 per cent of our leather,” says Mr Ahlgren. “Most of it goes to countries in Europe or the US but we do sell to customers farther away as well. China is currently the fastest-growing market for us and the one where we see the greatest potential for future growth.”

Over the years, the site has seen ongoing investment. In 2005, for example, Elmo Leather spent €5 million on a new cleaning plant. “In the tanning process, you have to take responsibility for any waste matter that is produced. Now that we have this cleaning plant we can do it ourselves on site,” he says. “On the production side, we have recently made a large investment in our early tanning process as well.”

Taking off

Recent growth at Elmo has been within its aviation sector. Air transport places high demands on the interior of aircraft cabins with requirements from customers that the leather is durable, fireproof and lightweight.

In response, Elmo has developed its Endurance collection. This specially designed collection comprises leather that has been treated repeatedly and dyed in shades to withstand the tough wear and tear in aircraft. At the same time, it is resistant to dirt and quick and easy to clean.

“This is a relatively new industry for us – and is currently the fastest-growing sector for us,” Mr Ahlgren says. “We are working with Norwegian Air and Virgin Atlantic.

“With so many short-distance flight operators in Europe now, who are keen for quick turnarounds, and to see their planes cleaned after landing and back up in the air as quickly as possibly.

“Many of these airlines have traditionally used fabric but now they are discovering that leather is not only durable but can be cleaned quickly. It can also be made to be very thin and lightweight, which makes it very suitable for aviation purposes.”

Future prospects

Elmo hopes to find more uses for its leather within the transport industry in general. Rail and bus companies, for example, can also make the most of a product that it hardwearing and easy to clean.

“The furniture industry is also an area that holds great potential for us in our drive to serve more customers. While the residential furniture industry is suffering at the moment we do believe there will be growth in the office and contract furniture business,” he says.

“These days, the two do blend more into each other, with more residential-style furniture going into some businesses and with people often opting for office-like pieces for their homes.”

And he adds: “The key for us is to keep looking at all these industries, and thinking about what we can offer them and how we can make better use of the raw hides that arrive with us and that we turn into leather.” n