Total solutions in steel and aluminium BE Group

ToTaL SoLuTIoNS IN STEEL aND aLuMINIuM

The BE Group of Sweden is a market leader in the development and manufacture of specialised stainless steel and aluminium products. It is acknowledged worldwide as the company of choice when it comes to meeting new technical challenges. Philip Yorke reports.

The BE Group of Sweden has been trading for over 100 years and remains a privately owned family business with a long and proud history. It is listed on the Stockholm Stock Exchange as a trading and service company that is focused on high quality steel, stainless steel and aluminium. It offers efficient delivery and valueadded production services to customers that reside primarily in the construction and engineering sectors.

In 2016 the group confirmed revenues of SEK 3.9 billion, which was generated by a workforce of more than 900 employees. Its headquarters are located at Malmo, Sweden, with Finland and Sweden remaining its biggest markets, although many of its products are exported worldwide.

Pre-processed precision

The BE Group offers an unrivalled product portfolio of steel, stainless steel and aluminium products, as well as a large and competitive selection of production and consultancy services. The company’s range of various types of steel and aluminium products also includes thousands of different items from many of the world’s leading suppliers.

In addition, the BE Group provides tailor-made products that are pre-processed to meet its customers’ specific requirements. This helps to keep production throughput times as short as possible and to optimise production costs. Finished products are delivered directly to a customer’s production sites at competitive prices and precisely on time. By outsourcing parts of a customer’s production, it makes it possible for them to focus on their core competencies and to free up capital and resources. This is in addition to reducing their overheads and increasing profitability.

The BE Group’s comprehensive range of production services includes the cutting and sawing of steel, stainless steel and aluminium, as well as shot blasting and protective painting. Furthermore, it offers flame cutting and the pre-processing and reinforcing of steel sections. The group also has a number of state-of-the-art workshops designed to shorten lead times and reduce transportation costs.

From strength to strength

The BE Group continues to see consistent growth across all its divisions and has again seen a strongly improving operating result in its third quarter. Net sales rose by 9 per cent to SEK 968 million. The company’s president and CEO Anders Martinsson said: “The third quarter provided further evidence that the BE Group is on the right

track. Following a seasonal weak start to the quarter, an increase in net sales of 9 per cent was achieved compared to last year, and the underlying result (uEBIT) improved to SEK 22 million.”

Martinsson added, “The improvement is primarily attributable to increased steel prices and improved profitability in our production operations. The sharp rise in steel prices that occurred in the second quarter was followed by a settling of prices for certain types of steel that resulted in inventory losses of SEK -3 million, compared with inventory gains of SEK 16 million in the same period last year.”

According to the BE Group, demand is expected to remain favourable in the company’s main markets, with both the Swedish and Finnish manufacturing sectors developing well. However, it is expected that steel prices will increase slightly until the end of the year and this, combined with on-going improvement measures and the discontinuation of unprofitable operations, means the group’s profitability is expected to develop positively. As a result, it expects to see a substantial improvement in earnings in the fourth quarter compared with that of the previous year.

Broad range of logistics services

The BE Group’s logistics services help its customers to improve their efficiency, their profits and to reduce their costs. The com-

pany deploys its own warehouses and distribution systems to offer customers complete logistics solutions. Its warehouse and efficient distribution systems ensure customers are offered the highest levels of operational efficiency and also help them to run their production operations more smoothly.

The broad range of logistics services on offer at the group include steel and aluminium solutions that are tailored to specific needs, as well as transport planning and insurance. What is more, it offers customised delivery schedules with standard labelling and packaging. In addition, the company provides unrivalled logistics know-how, competitive prices and order tracking online, as well as covered delivery trucks and truck cranes for swift unloading.

An example of how this long-established company is clearly focused on the future can be seen in its progression into the value chain. Increasingly the company is making more products for itself, rather than its previous role as a sole provider of the delivery of metals, and this has proved to be a very positive strategy. n

For further details of the BE Group’s innovative steel products and value-added services visit: www.begroup.com