BSB Industry is approaching half a billion in sales

BSB Industry has found the formula for growth. The subcontractor, with factories in Lunderskov, Denmark, and Ciechocin, Poland, is increasing sales at an annual rate of almost 30 percent, according to its latest accounts.

Teddy Norsgaard Jørgensen looks into a bright future

In 2019, the company generated total sales of DKK 424.6 million, which is an improvement of DKK 100 million. At the same time, profit before tax has increased from DKK 31.7 million DKK 36.1 million.

- The reason is that we have focused on total solutions instead of single orders, and we have gotten more customers as well, says BSB Industry CEO Teddy Norsgaard Jørgensen.

The total solutions are kits assembled for wind turbine manufacturers. Here, the subcontractor produces, sources, packages and delivers complete sets to the installation sites for the wind turbines. It is primarily Anchor Cages, which anchor the wind turbine tower to the foundations of onshore wind turbines, but also kit sets for tower structures and nacelles.

- We had put in place a three-year strategy plan. We have stuck to it and it has been succesfull. I expect that we will reach half a billion in revenue by 2020, says the CEO.

Plan for US factory is put on hold

While sales are flying high in Europe, the Lunderskov company with 70 employees in Denmark and around 150 in Poland has put its factory ambitions for the US on hold due to the corona situation. This does not mean, however, that there are no BSB-deliveries crossing the Atlantic.

- Right now we have an order on flanges underway to the US. And we have an additional 18 projects, not yet in the order book, but in the pipeline, Teddy Norsgaard Jørgensen explains.

He elaborates that he feels that BSB Industry is competitive on price in the US market, even with the additional cost of shipping included. The real challenge is the delivery time of five weeks across the ocean.

- If American customers were better at planning, shipping time would not be a problem for us, he says.

- They do purchasing like we did it ten years ago. They have many different suppliers and do not effectively coordinate their purchases.

Financial Accounting

Million DKK	2019	2018
Net sales (DKK)	424,6	324,3
Operating profit (DKK)	37,1	33,5
Income before taxes (DKK)	36,1	31,7
Net income (DKK)	28,1	24,7
Balance sheet total (DKK)	261,1	256,1
Equity (DKK)	99,4	76,3
Number of employees	57	52