Sulzer Focuses on Medical, Surface and Materials Technology

20 September 2000

Sulzer makes drastic changes: Medical Devices and Surface and Materials Technology form the core of the new corporate strategy. These areas offer potential for high growth and profitability.. At the same time, Sulzer plans to make acquisitions of over CHF 2 billion within two years. The new corporate strategy, which will lead to the largest redirection in the history of Sulzer, was formulated by the Board of Directors and the Executive Management over the last several months. Each business unit was thoroughly analyzed for strategic position, revenue and growth potential. The causes of the unsatisfactory performance of the Sulzer Corporation were identified as its too broad diversification, large presence in mature and cyclical markets, and the exposed strategic positions of certain businesses. The new strategy builds on current strengths. Sulzer has a solid basis in the growing and profitable sectors of Medical Devices and of Surface and Materials Technology, with deep technical know-how, great innovation potential and a strong brand. Minimum standards for Sulzer businesses will be operating margins of 15% and annual sales growth of at least 5%. Sulzer targets a leading position in each of its markets. The core competence in materials technology will be strategically utilized by each business. Sulzer will continue to develop and market new-venture projects such as advanced polymer composites. Know-how in materials technology will be systematically brought to market. Sulzer intends to make substantial investments in future-oriented technologies

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