Ahlstrom - Recent Performance And Strategy

Four years ago, Ahlstrom Glass Fibre decided to double its capacity to 40,000 tonnes/year. However, by the time the new furnaces were ready in 1996, 18 months of glass fibre shortages and rapid growth in the European composites market had past, and the market was shrinking. The new plant is thus operating at 15% below capacity. The company's strategy is now to develop reinforcements for high-growth, high-profit markets. Company sales were FM336m in 1995 and are expected to rise to FM350m for 1996, lower than originally forecast due to the slowdown in the European composites market.