Group Strategy & Strategic Cornerstones

World trade is undoubtedly moving in a more protectionist direction, with tariffs and other trade barriers threatening to reduce global trade in the long term. At the same time, there is a clear eastward shift in trade, with the Asia-Pacific region growing rapidly while more mature economies struggle with weak growth. The West also faces a demographic challenge with an aging population and a declining birth rate.

What is means for Trelleborg
The Trelleborg Group is characterized by a local presence with global capabilities. This means that with approximately 100 facilities much of our production and development is close to our customers in, while our expertise in materials and applications is shared globally. In 2024, we further strengthened our presence in Asia and in other emerging geographies, both through acquisitions and by building new facilities. During the year, we also established Trelleborg Medical Solutions business area, which clarifies our focus on healthcare and medical – an industry that already accounts for more than one-tenth of global GDP, according to WHO.

The world is undergoing a transition of major proportions to reduce greenhouse gas emissions, while scarce natural resources are creating significant challenges. The Paris Agreement’s goal of limiting global warming to 1.5°C requires businesses and society to transition and think in entirely new ways. Above all, it is about improving the efficiency of energy consumption and replacing fossil fuels with both renewable and fossil-free alternatives.

What it means for Trelleborg
Trelleborg’s solutions are used in renewable energy, such as wind power and hydrogen. They also contribute to reduced energy consumption and extended service life in a range of industrial applications, thanks to their unique properties. Water infrastructure is a growing area, helping to provide drinking water to people and sealing leaks in infrastructure systems. At the same time, we are transitioning our own operations to reduce carbon emissions, improve energy efficiency through our Energy Excellence program, and increase the share of bio-based or recycled raw materials in our products.

Migration to large cities is taking place all over the world, particularly in emerging markets. This trend will increase the demand for more efficient cities, which will require major investments in infrastructure – an area where there are currently large gaps between needs and actual investments. The need for mobility, for both shorter distances within and between cities and for longer trips, is expected to increase in pace with rising labor mobility and tourism.

What it means for Trelleborg
Trelleborg’s solutions are integrated into the equipment used to construct both buildings and infrastructure. Our seals and profiles also contribute to energy-efficient buildings. During the year, the Group increased its exposure to water infrastructure – an area that is growing both through new construction and rehabilitation. Regardless of whether it concerns a mountainbike ride or a business trip by train or plane, our solutions are there to ensure a safe and efficient journey.

Technological advances, especially in AI, are happening at a rapid pace and will have a major impact on society, not least on industrial processes. These processes can be significantly streamlined, contributing to a reduction in environmental impact, among other benefits. At the same time, the level of automation is increasing in both industry and society.

What it means for Trelleborg
Semiconductor production is a key piece in the rapid development of AI. In this area, Trelleborg develops sealing solutions for the advanced equipment required in production of semiconductors. Automation is a clear trend in industry, and demand for our solutions is growing. AI and automation are also an increasingly important element in the development of our own business – from streamlining production and administration to developing marketing and customized offerings.