Growth despite uncertain macro-economic conditions

After a couple of years of strong growth driven by low interest rates and supportive structural trends, demand normalized in 2023 as a consequence of a weaker macro-economic environment in several regions. Despite a less favourable investment environment, order intake increased by 20 percent and reached a new record level of SEK 26 billion in 2023 driven by the 2022 acquisition of Desmet, continued investments in the biofuel industry and good growth in service.

The market is still benefitting from growing structural demand trends such as new foods, more efficient water treatment and biofuels as part of fuel blending. However, the weaker macro-­economic activity impacted most end markets and several geographic markets. The pipeline of projects continued to develop positively but higher interest rates and increased uncertainty in some cases caused customers to postpone decisions. The somewhat weaker macro-economic conditions were partly compensated by the recent focus on innovation and building an even stronger market presence, both though direct sales channels and through a broader partner network, which allowed the division to strengthen its market position in several technologies and end markets during the year.

Demand remained strong in the biofuel sector, both in bioethanol and biodiesel. For bioethanol and biodiesel, regulations stipulating a higher blending of petrol in regions such as North America, South America and India continue to drive investments. Alfa Laval’s historical presence and offering in this growing market was complemented by the wider offering and presence by Desmet, with competence and know how in renewable fuels and the biofuel industry.

Investments also continued in technical infrastructure for water treatment applications in many geographical markets, with several countries prioritizing investments in the area. The increased need for more efficient water and wastewater treatment is driven not only by new regulations and lower operational costs, but water scarcity and environmental concerns in general.

A weaker demand was seen in the pharma and biotech industry, albeit coming from an exceptionally high level after strong growth in recent years. Demand also normalized in the dairy and brewery sectors as customers adapt to a new interest rate environment.

The service business developed strongly during the year with 11 percent growth and today represents 24 percent of the division. A positive effect was seen from a stronger market presence, a structured approach of how to reach the installed base of Alfa Laval equipment and the wider development of value-added and field services.

Innovation enables more sustainable use of resources

The need for more sustainable ways of producing, transporting and consuming goods is affecting Alfa Laval’s offering as well as the setting of new requirements in the applications and industries that we serve. Significant reductions in energy consumption have been achieved in the new separation technology portfolio, both for high-speed separators and decanters, where new products can typically reduce energy consumption by as much as 50 percent. Water and waste treatment remains a prioritized area, where improved products help reduce customers’ water consumption or make water treatment processes more efficient. Zero liquid discharge is one such example, where water is recovered from wastewater for reuse in customers’ processes and residual waste streams are significantly reduced.

The recently introduced CultureOne is the first premium separator portfolio offered to single-use biopharma processing. The technology allows companies to bring more medicine to the market through improved yield and in a safer way through flexible factories. In addition, CultureOne uses 40-80 percent less water, energy and cleaning agents compared to less efficient filter-based harvesting methods, whilst also only using much less plastics.

A new generation of control tops was introduced during the year, which is a technology used to operate actuators on valves to ensure safe valve opening and closing. Alfa Laval has over 20 years of experience in the field and maintains a leading position through continuous innovation. The latest version, V50/V70 has been developed with a clear mission to help customers save water, chemicals and energy. During the year, process customers around the world chose several of Alfa Laval’s digital solutions to upgrade existing equipment which resulted in significant environmental and financial savings.

The digital transition of sales continues, including the configuration of products, ordering and support. To support this trend, the division continues to expand its e-commerce platform, which enables more business to be fully conducted in a digital, secure and efficient way. Digitalization is also having an impact on service and maintenance work, with more products being connected and monitored via sensors and cameras. This kind of remote support saves time, facilitates problem solving, simplifies preventive service and ultimately gives the customer more reliable uptime.

Revolutionizing beer – high-quality brews from concentrate

The future of beer has arrived, and it’s in the form of beer concentrate – a new generation of beer that’s every bit as good as the fresh draft beer poured straight from the tap. This remarkable innovation, supported by extensive taste tests, is transforming the way we enjoy our favourite brews.

The secret behind this breakthrough lies in a high-pressure, low-temperature process, which yields a top-notch concentrate. Once rehydrated, this concentrate retains the exact taste, aroma, and alcohol content of the original beer, making it indistinguishable from the fresh brew.

This brewing revolution is being driven by Alfa Laval and its pioneering beer processing system “Revos.” What makes this system truly exceptional is its ability to deliver the same great-tasting beer and beverages from concentrate while simultaneously addressing critical environmental concerns.

By adopting a high-pressure, low-temperature process, Alfa Laval has not only created a high-quality concentrate but also paved the way for a more sustainable beer production and distribution process. The Revos system significantly reduces emissions, water consumption, and energy costs, making it a more sustainable choice for both beer makers and beer enthusiasts.

One of the major issues in the beer supply chain has always been the transportation inefficiencies associated with hauling heavy kegs and bulky containers to bars, cafes, and restaurants. This outdated approach is not only fossil-fuel intensive but also wasteful. Beer is, after all, primarily water, which makes transporting it in its traditional form an inefficient practice.

This is where beer concentrate can really make a difference. Transporting concentrate is up to six times more efficient than transporting regular beer and beverages. By embracing the concentration system, beer manufacturers, as well as bars, cafes, and restaurants, can significantly reduce transport costs and their carbon footprint. Moreover, it helps to reduce costs related to packaging, storage, shipping, and refrigeration.

The introduction of beer concentrate is a true win-win for society. It not only enables a more sustainable beverage supply but also ensures that beer lovers can enjoy their favourite brews without compromise. Cheers to a more sustainable future in beer production and distribution!