Case: Nordic Brass

Nordic Brass in Gusum, Östergötland, is in many ways a unique company. It is not only the only brassworks in Sweden but also the only one in Europe north of Berlin. The dominant customers are in the HVAC industry, so the development of the construction market is crucial for Nordic Brass.

Four years ago, the outlook for Nordic Brass and its 125 employees was grim. Losses on the bottom line, poor liquidity, large and costly inventory, and low delivery reliability.

At that point, Lazarus stepped in and acquired majority ownership. A series of measures were quickly implemented. A new external board was recruited, with Per Lindberg as chairman, along with several leading executives. One of them was the new CEO, Björn Wiborg, who brought extensive experience from various leadership roles in the metal industry.

– Together, we focused intensely on quality, delivery reliability, and stability in production. We opted out of unprofitable products and significantly reduced the cost-driving inventory, says Björn Wiborg, continuing:

– The toughest part was implementing substantial general price increases. This led to many tough negotiations and also to losing some customers. But we raised the price level, thereby laying one of the cornerstones for better profitability.

– The pressured situation meant we had to implement all measures simultaneously – raise the margin by 30 percent, shrink the inventory by 20 percent, and cut costs by 10 percent – so it was a hectic period.

Björn Wiborg does not deny that the turnaround took time. When they were at their busiest, a smelting furnace broke down. That breakdown was followed by significant electricity price increases, which hit an energy-intensive operation hard.

Throughout this time, Björn Wiborg felt massive support from the Lazarus team, with regular meetings to discuss the steps forward.

– Lazarus has a methodology that is very appealing for a company in a turnaround situation. The team listens and considers what I and the rest of the management think, follows up, and sets clear requirements. It is freedom under responsibility, with concrete discussions.

– It is also important that Lazarus is genuinely long-term. They have patience and are not focused on a quick fix, says Björn Wiborg.

Today, Nordic Brass has a clear focus on the profitable core business. Production has decreased from 25,000 tons to 18,000 tons of brass annually. At the same time, they expect to achieve their best-ever results in 2024, despite the weak construction market.

– Now we have a five-year plan – which segments to target, potential additional acquisitions, and increased refinement. I usually put it this way, says Björn Wiborg:

– We have gone from Division 4 to Division 2. Now we are aiming for play in Division 1!