Motala Verkstad Group (MVG) is an engineering group with core competence in processing, manufacturing, advanced welding and assembly of heavy and semi-heavy industrial systems and products. Today, part of the company is based in Kristinehamn, Värmland. Anders Holm, CEO at MVG, talks about the two most recent business acquisitions in Kristinehamn.
TEll us about motala verkstad group?
– Motala Verkstad Group has been around since 1822, has a long history and has operated within a number of different industries. We have a long tradition of running engineering businesses. Today, the company is backed by several private investors, all of whom are passionate about the Swedish engineering industry and believe that there is a future within the industry. We see a change in the engineering market with activities moving back to Sweden – something which we are very happy about. This proves that we can be competitive in Sweden.
what were the reasons behind MVG´s decision to establish MVG In KRistinehamn and värmland?
– We first acquired Scana in Kristinehamn with the aim of merging our two workshops. We were, in other words, competitors who started a dialogue and realised that we should be one company instead of two. After that, we bought Rolls Royce in Kristinehamn. What attracted us was the different workshops, but also Värmland as a region. Värmland as well as Kristinehamn have a long and strong tradition within the engineering industry. Here you’ll find skilled labour and a lot of colleagues within the same industry. It is a very attractive region from an engineering perspective!
what were the success factors when you established MVG in kristinehamn and värmland?
– Värmland offers expertise and a large labour market. There are a lot of people with great experience and a long background in the engineering industry. It is also an incredible advantage that Kristinehamn has an active Municipality which is favourable towards the business sector and supportive and encouraging in many ways. In addition, there are a number of interest groups surrounding clusters of companies within pulp, the defence industry, hydroelectric power and the maritime industry. These clusters of expertise are all areas of interest to us. Värmland is a region of the future where we want to grow!
what would you say is important to encourage more business in värmland?
– As a region it is important to specialise within certain industries. The areas of defence, pulp and hydroelectric power, and maritime clusters, are the strengths of Värmland. The stronger you are as a region within different areas, the more attractive you will be for companies to establish themselves here.
Another important part is the university. An innovation centre and an academy which is well integrated with the business sector is an important key to success. Conducting research and having a competence centre which encourages young people to enter the business sector are advantages.
what´s your outlook on the future?
– We have three very tough years behind us, but we have a positive outlook on the future and believe that the market will slowly recover. Today, we are consolidating parts of the engineering industry to stay active. We have made three different and very successful acquisitions recently and we want to build an even bigger engineering group. We see a stable market with potential to grow through insourcing of units.