SMP Parts - a leading supplier in the construction equipment market

SMP Parts switched owners at the beginning of July 2014. The new owner constellation has worked with company management to chisel out a strategic plan for the next four years, with investment in new markets, primarily in Europe, at the top of the agenda.

Business activities

The company manufactures tools for excavators and is a market leader in buckets and couplers mainly in Sweden and Norway, where products that are highly robust and hardwearing are required due to the Nordic ground conditions. The company also has a third product line in the form of a tiltrotator marketed under the name Swingotilt®. The market share for this product is significantly smaller and it is salable in all geographical markets. Until recently, it was a product unique to the Nordic region, but over the past few years it began to be established in other Northern European countries and to some extent in other continents as well. The company’s future expansion will mainly focus on this product area and will be complemented by a simpler, locally-produced range of excavator buckets. Over the next few years the company will increase its marketing activities in its current markets – Sweden, Norway, Germany and the Netherlands/Belgium – and will establish itself in Finland, Denmark, France and the UK.

 

Market

  • The market was relatively stable in 2014 and is expected to remain stable in 2015, despite the tough situation in the mining industry in recent years. Investments in infrastructure projects in the respective countries as well as EU-funded investments will have a positive impact on the sector in the future.
  • Today, the company has two main markets – Sweden and Norway, where it is a market leader – but the product range is also well-suited to the Finnish market
  • The Swingotilt® product line is growing in the Northern European market and SMP is involved in driving this development, mainly in the Netherlands/Belgium and in Germany. The product has significant potential here; in the Nordic region nine out of ten excavators have a tiltrotator, while the corresponding figure in the rest of the European markets is less than 5 percent
  • SMP is competing globally with Engcon, Indexator, Steelwrist, Nox and HKS in the tiltrotator market and is contending with numerous local bucket manufacturers, as well as low-price bucket imports from low-cost countries such as China, India, Turkey and the Baltic States
  • In 2014 SMP launched a mechanical secure quick coupler – HardLock – which has already attracted a lot of interest in the Nordic market, and which also has the potential to break into the fragmented European quick coupler market

Significant events during the year

  • At the beginning of the year, SMP launched its new secure quick coupler called HardLock, an enhanced version of a very common coupler found in the Nordic countries
  • The new graphic profile and a new website were launched at the end of May at Maskinexpo and attracted a lot of attention
  • The new owners – MVI and Fouriertransform – came into the arena just before the summer. An interim CEO, with many years of experience in the industry, took the helm from day one. A new permanent CEO will start on March 2, 2015
  • Significant effort was put into keeping the management team intact following the takeover, and information on the change in ownership was provided to the employees the first week after the transaction was finalized