The key points of Lassila & Tikanoja’s strategy are:
• continuing to strengthen its market position in Finland
• investing in recycling plants and concentrating on product development
• controlled expansion in the Baltic region
• organic growth and growth through acquisitions.
L&T’s target is to make the Company’s shares a sound and competitive investment in the long term through growth and high profitability.
L&T intends to remain in its present operating sectors and expand in a controlled manner. Growth will be pursued mainly organically, in addition to which there will be acquisitions. The Company aims to grow faster in Finland than the market average. The long-term growth target for the Company’s net sales is more than 10 per cent annually. Its growth target abroad is higher, and will be based on organic growth, establishing new units and acquisitions. In particular, growth will be sought in Sweden, the Baltic States and selected areas in Russia.
Over the next few years, L&T will invest significantly both in Finland and abroad, which will accelerate growth in net sales. Investment in product development will be increased.
L&T’s competitiveness will be maintained through improved efficiency and differentation. Efficiency will be improved by viewing the business as processes and changing its operating methods. Process evaluation will be based on time and costs evaluations. Differentiation from the customer’s perspective will be achieved through price and product development.
Success at L&T is measured primarily in terms of profitability. The most important indicator of profitability is the EVA (Economic Value Added) result, which the Company aims to improve every year. In today’s growing market, exceptions to this goal may be made only temporarily, for example when the interest rate level rises sharply, operations are significantly burdened by the initial stages of unusually large investments or expansion in international activities places a temporary burden on the result.