Case: Eco Log
At the end of 2022, things looked grim for the Söderhamn-based company Eco Log. The company was hit hard by disruptions in international deliveries during the pandemic. For a company where hundreds of parts from different suppliers must come together to create a high-tech forestry machine, a single missing part was enough to halt production.
When Lazaris acquired the majority ownership of the company, a swift reconstruction effort began, along with the appointment of new executives in several key positions. One of the members of the Lazarus team who had been analyzing Eco Log was Daniel Bonna, who assumed the role of CEO at the time of the ownership change:
– During the initial period, it was really about rolling up our sleeves. From the outside, we had identified the company’s strengths and focused heavily on certain parts of the product range while narrowing down others. At the same time, we worked hands-on with working capital and focused on generating cash flow and profitability, says Daniel Bonna, adding:
– There were long days in the factory and long days on the road meeting our customers around the world. We received valuable feedback from them and managed to instill a sense of security and trust in our ability to continue delivering.
Already in 2023, the new management team, employees, and Lazarus managed to stabilize operations, producing significantly more machines than the year before. As with other companies Lazarus has taken over, a clear focus on the profitable core business has yielded results.
– This year, we are generating 20 percent less revenue to adapt to a softer market but will still achieve a positive operating profit, says Daniel Bonna.
Short and fast decision-making processes, close contact between owners and management, and alignment between the owners’ and management team’s expectations are, according to Daniel Bonna, some of the keys to the successful turnaround.
– Another critical success factor is Lazarus’ long-term perspective. We are now setting clear goals to find a niche where we can become truly profitable in the long run. We are making investments today that will yield positive results in five years, says Daniel Bonna.
– There are many similarities with large Swedish industrial companies. Despite our relatively small size, it’s a complex operation involving development, production, and marketing. We are present in about 15 markets worldwide. The Nordic Countries, Germany, France, and Spain are our major markets, and we are now focusing on further building the important North American market.
– Being part of such a journey is at times challenging but also stimulating for the employees involved. It also feels very rewarding to be a responsible player in the communities where we operate and to have contributed to saving hundreds of local jobs, says Daniel Bonna.
