Strategy for Tessenderlo Group

Our company's strategy is based on the outcome of a rigorous assessment of our product portfolio . On the one hand, we evaluated the market attractiveness and the competitive position of each of our businesses. On the other hand, we evaluated the possible impact of global megatrends on the future of the group. These trends are: climate change, scarcity of virgin raw materials, shift of industry towards the developing countries, demographic growth and its related topics as water shortage, health care and need for food.

The implementation of the resulting strategy will not just make Tessenderlo Group a stronger group, but will also make that Tessenderlo Group will contribute to solving some of the above mentioned needs in society.

Akiolis and Gelatin use residuals of animal origin as raw materials. Akiolis also processes residuals of vegetable origin and other sources such as bakeries.
Tessenderlo Kerley utilises tail gasses from refineries to produce fertilisers and industrial products. 
Our Water Treatment business preocesses residual acid from the steel industry to make water treatment coagulants.

In all the above areas of activitiy Tessenderlo Group provides a service by treating the by-products or residuals of different industries. And we create added  value by transforming these residuals into new products. 

In construction, the use of Tessenderlo Group's PVC window and door profiles partly made out of recycled material improves insulation and reduces energy consumption. Where as our Plastic Pipe Systems business minimizes the loss of valuable drinking water and contributes to water management in general. In addition, our pipe systems are used to capture the heat stored in the ground.

Tessenderlo Group focuses on sustainability both economical and environmental based on its know how of re-use of residuals of different industries to produce new valuable products.

1. Growth businesses

As a result of the review and in line with our strategy to reduce the share of commodities to 30 % of revenue, we intend to grow the tier one businesses that comprise Akiolis, Gelatin, Tessenderlo Kerley and Water treatment products. These activities will be the new core and the growth drivers of the group. These businesses collect by-products of a given industry as a service to upstream customers and create value by transforming these by-products into new products for downstream customers.

Activities in the second layer - Plastic Pipes Systems and PVC Profiles - that fit the idea of sustainability will be developed in selected markets.

2. Mature businesses

The bottom layer entities operate in very competitive, capital intensive, mature markets.
In managing these businesses, strict cost and cash-management and customer focus are key. Tessenderlo Group will constantly look at ways both internally and externally to improve their competitive position.In order to do so, we examen all opportunities including alliances, mergers or upstream integration with raw materials and do not exclude the possibility of divestments to the benefit of all concerned.

As Tessenderlo Group will develop its businesses, it will:

• put more emphasis on growth speciality businesses with a focus on service and less on commodity type products

• focus on businesses with higher green value creating potential

• develop businesses that fit its sustainable business model and focusses on innovation

• develop businesses that contribute in a sustainable way to the solution of shortage of natural resources, food and clean water

• strive for more global presence

Although, the turnaround will be gradual and will take several years to accomplish, there is a sustainable and profitable future for Tessenderlo Group.