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Glaston reviews its strategy and updates financial targets

Glaston has reviewed its strategy and updated its financial targets for the strategy period 2018–2021 as a result of its acquisition of Bystronic glass

The foundation of the strategy remains unchanged; Glaston will continue to seek growth in their core business and to profit in the services field through digitalization. The strengths of Bystronic glass and Glaston as well as leveraging the know-how Bystronic glass adds will allow Glaston to build a strong machinery and services offering as well as the ability to capture new growth opportunities. Implementing a joint operating model will support the company in reaching its strategic goals and in realizing the full potential of combining Glaston and Bystronic glass.

Glaston’s overall strategic goal remains unchanged: their ambition is to be the industry’s innovative technology leader, realizing its customers’ highest ambitions in glass.

Glaston’s purpose is to build a better tomorrow through safer, smarter and more energy-efficient glass solutions. The demand for environmentally sustainable and energy-efficient solutions, tightening safety standards as well as growing visual and functional quality requirements of glass, increasingly affect the way customers operate as well as impact the specifications they require from their glass processing technology partners.

Glaston’s strategy is divided into four key themes:


Strategic aim: to become a global market leader in the company’s core business
Glaston will focus on growth in its core business with the aim of becoming the leading player in Heat Treatment technologies and Insulating glass as well as in Cut and Grind technologies for the Automotive market.

With a versatile product portfolio, Glaston is in a strong position to respond to the demand for innovative solutions. The company will seek growth in its core business, and work to develop an integrated glass processing line offering and drive the automation of equipment for the benefit of its customers.

Key goals

  • Profitably grow core machine sales, develop an integrated line offering as well as increase digitalization and level of automation in products leading up to fully automated lines.


Strategic aim: to capitalize on new market potential
Combining the strengths of Bystronic glass and Glaston provides the company unique opportunities to develop the market and further strengthen positioning in the mid-market segment of its core products; in technologies for the automotive market and in emerging glass processing technologies.

Growth is sought through the development of our product portfolio and the development of an integrated line offering to better suit the glass processing mid-market segment customers’ needs, especially in the Architectural market in Asia. The company will further seek to leverage the strong position of Bystronic glass in the Automotive market, further develop offerings in the mid-market segment and aim to capture cross-selling opportunities. The company will continue to seek opportunities for emerging glass processing technologies within energy efficient, smarter and safer glass.

Key goals

  • Develop mid-market offering in the Architectural market.
  • Leverage the strong position of Bystronic glass in the Automotive market and capture cross-selling synergies.
  • Continue to look for new opportunities and technologies to support growth in the Emerging Technologies product area.


Strategic aim: to win in services through digitalization
Glaston believes that combining the Services businesses of Glaston and Bystronic glass will drive growth. The company will seek to leverage untapped potential from existing unique life-cycle services, its combined large installed base and extensive global service network.

Today, most of the service work is performed in-house by the customers. The company sees strong untapped potential in combining its extensive installed bases with innovations within digitalization and automation for the benefit of the customer and believes that the combined services offering of Glaston and Bystronic glass have the potential to lead to appealing benefits for the customers and provide a base for further development of proactive and predictive maintenance and optimized services, with the aim of covering the key parts of the whole processing chain in the future.

The combined service offering enables the company to expand its scope with the ambition to optimize the performance of its customers’ installed base throughout the life-cycle, using data analytics and artificial intelligence to support customers’ business decisions. The goal is to have the most competitive ecosystem in the market, benefiting the company’s customers and improving their uptime and operational efficiency. The company believes this differentiates itself from the competition and puts it in a strong position to fulfill the most demanding needs of its customers.

Key goals

  • Grow the Services business supported by digitalization.

The company’s strategic goals are supported by a joint operating model which will assist in realizing the full synergy potential of combining Glaston and Bystronic glass. The aim is to develop a cohesive and effective operating model for sales, service and operations, capture synergy potential and continuously improve the company’s performance. The first phase of building the joint operating model targets cost synergies, cross-selling, strengthening Glaston and Bystronic joint presence in Asia and further developing integrated line offerings for relevant end markets.

Key goals

  • Develop cohesive and effective operating model for sales, service and operations. Realize full synergy potential.


  • Annual growth of net sales exceeding market growth* (CAGR)
  • Comparable operating margin (EBITA)** above 8 percent at the end of the strategy period. EBITA excludes amortizations of purchase price allocations.
  • Comparable return on capital employed (ROCE)** of more than 14 percent at the end of the period

Glaston’s (without Bystronic glass) restated comparable EBITA margin for 2018 was 5.6 percent and comparable return on capital employed 9.6 percent. Bystronic glass is similar to Glaston in net sales and EBITA margin. The Bystronic glass acquisition, and related financing increases Glaston’s equity and debt for a total of about 80 million EUR and the transaction will result in a significant amount of goodwill created. Therefore, the return on capital employed (ROCE) development will be impacted by increasing capital employed during the strategy period immediately following the transaction.

Glaston plans to publish Glaston’s and Bystronic glass’ unaudited combined financial information for 2018 and the first quarter of 2019 at the latest in connection with the planned rights issue, which is expected to begin during the second quarter of 2019.

*Flatglassmarket growth over the cycle.

**Calculation of key ratios:

Comparable EBITA excluding amortizations of purchase price allocations: Result before amortization of purchase price allocations +/- items affecting comparability

Comparable return on capital employed, percent (Comparable ROCE): (Profit / loss before taxes + amortization of purchase price allocations +/- items affecting comparability + financial expenses x 100) / (Equity + interest-bearing liabilities, average of 1 January and end of the reporting period)

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