Norwegian conglomerate Orkla has revealed it plans to focus on branded goods and will use acquisitions to build its business in the sector.
Orkla CEO Bjorn Wiggen said the branded goods industry is the “strategic focus” of the company, which has operations in a number of food and household goods sectors.
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From 2005, Orkla diversified through the acquisition of metals and materials company Elkem, which gave it businesses in the aluminium and renewable energy sectors.
However, Wiggen told analysts on Wednesday (14 September) that Orkla had decided to scale back its operations and would now focus on brands.
“Last year, we recognised that the group’s portfolio had become too broad, and have subsequently sold Elkem, [forest companies] Borregaard Forests and reduced the share portfolio,” Wiggen said. “There is a clear opportunity to leverage our strengths and to strongly reinforce Orkla’s position as the leading Nordic branded goods group.”
Orkla owns consumer goods companies across the Nordic region, central and Eastern Europe, Russia and India. The company said there were “increasing opportunities” to buy branded goods firms, “particularly in the Nordic region”.
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By GlobalDataIt added that it planned to sell aluminum business Sapa, chemicals unit Borregaard and its stake in renewable energy firm REC. Last month, meanwhile, Orkla moved to take majority control of paint company Jotun.
