Strategy and growth
Shift to growth
The pace of acquisitions accelerated this year and they will strengthen our position in growing industry segments, and broaden our assortment, digital capabilities and geographic footprint. Solid round tools is a prioritized growth area and in 2021 we acquired the Polish manufacturer Fanar and 67 percent of Chuzhou Yongpu Carbide Tools, a China-based premium solid round tools company. We also acquired the US-based round tools manufacturer, GWS Tool Group that will increase our market share in the North American market.
A number of acquisitions were made to expand our capabilities in digital manufacturing and software solutions. As a consequence, we updated our revenue target for Sandvik Manufacturing Solutions from SEK 4 billion for 2025 to 6 billion and set an EBITA margin target of 20 percent by 2025.
In 2021 we acquired three providers of CAD/CAM software solutions for manufacturing industries: Cambrio, CNC Software and ICAM. The acquisitions are in line with our strategic focus to grow in the digital manufacturing space close to component manufacturing and leverage data capture for tool optimization. Cambrio is a leading company with an end-to-end portfolio in CAD/CAM software for manufacturing industries. CNC Software is the company behind Mastercam, the most widely used Computer Aided Manufacturing (CAM) brand in the industry and ICAM provides solutions that translate CAM data into optimized coding for guiding CNC machining operations. Our acquisitions of DWFritz Automation and Dimensional Control Systems (DCS) complements and expands our industrial metrology offering. DWFritz Automation has a leading position in in-line metrology and high-speed, high-volume, non-contact inspection and assembly automation, while DCS is a leading global provider of dimensional quality management software and on-site engineering services.
Our unique value proposition to the market is the ability to offer seamless end-to-end solutions for our customers, ensuring high productivity, high quality and minimal waste. Through our automated, connected and self-learning manufacturing processes, our customers stay competitive and improve their sustainability.
Our digital offering improves customer sustainability in multiple ways. The use of digital twins, and tool data management solutions contribute to more predictable outcomes that improve productivity and reduce material waste. Our in-line industrial metrology solutions improve monitoring of the outcome, which improves quality and thereby also reduces waste. The digital solutions from Sandvik Manufacturing Solutions are open and agnostic for ease of use with metal cutting tools or software from other suppliers. We see enormous potential for growth since many in the manufacturing industry have yet to begin their digitalization journey.