Andritz Business Model Canvas

ANDRITZ's supplier network is critical, providing essential components and raw materials for its sophisticated machinery and plant solutions. In 2024, the company continued to emphasize strategic partnerships to ensure a steady flow of high-quality inputs, vital for their diverse offerings in pulp and paper, hydropower, and industrial sectors.

Maintaining resilient supply chains is paramount for ANDRITZ's project delivery timelines and overall operational efficiency. The company's global supplier base, cultivated through strong, long-term relationships, underpins its ability to execute complex projects worldwide, contributing to its market leadership.

ANDRITZ's key partnerships extend to its robust supplier network, crucial for sourcing components and raw materials. In 2024, the company focused on strengthening these relationships to ensure consistent quality and supply for its diverse machinery and plant solutions across sectors like pulp and paper and hydropower.

Furthermore, ANDRITZ actively engages with industry associations and sustainability networks, such as the UN Global Compact, to stay informed on technological advancements and best practices. This engagement, ongoing through 2024 and into early 2025, allows for knowledge sharing and the adoption of leading ESG principles.

The company also prioritizes research collaborations, including a 2024 partnership with Graz University of Technology to advance sustainable biomass processing. These academic ties provide access to cutting-edge research and talent, vital for ANDRITZ's innovation pipeline.

Strategic client collaborations are also paramount, with projects like the one with Suzano for the world's largest pulp mill in Brazil demonstrating deep integration and tailored solution delivery, fostering long-term loyalty.

Andritz's key activity is the masterful project management and execution of complex industrial ventures across the globe. This encompasses the entire lifecycle, from the initial design phase all the way through to the final commissioning of the plant.

A prime example of this capability is the successful startup of the Suzano pulp mill, a massive undertaking that underscores their proficiency. Furthermore, the Pinnapuram pumped storage plant project highlights their ability to handle large-scale infrastructure development efficiently.

The company's success hinges on its adept coordination and deep technical expertise, ensuring that demanding customer requirements are met and projects are delivered precisely on schedule.

ANDRITZ's key activities center on the engineering, manufacturing, and comprehensive project management of advanced plants and equipment for core industries. They excel in delivering highly customized solutions, supported by a robust global manufacturing footprint, ensuring efficient project execution from design to commissioning.

A significant focus is placed on innovation, with substantial R&D investment aimed at improving efficiency and environmental protection, evidenced by over 6,500 patents. Furthermore, the strategic expansion of their service business, which accounted for 41% of total revenue in 2024 and reached 44% in Q1 2025, is crucial for sustained growth and profitability.

Digitalization and automation are also paramount, with solutions like the Metris All-in-One platform enhancing operational efficiency and data-driven decision-making, aiming for fully autonomous feed plants by 2027.

Andritz operates a global network of manufacturing and production facilities, crucial for building their large-scale equipment and integrated plant solutions. These sites are the backbone of their supply chain, allowing for direct control over quality and delivery timelines. For instance, in 2023, Andritz continued to invest in modernizing these key assets to boost efficiency and capacity.

ANDRITZ's key resources are multifaceted, encompassing its vast intellectual property, skilled global workforce, extensive manufacturing network, and advanced digital solutions. These elements collectively enable the company to deliver highly specialized and efficient industrial technologies.

The company's technological expertise, backed by over 6,500 patents, is a significant differentiator. This innovation is further supported by a global workforce of approximately 30,000 employees and a network of manufacturing facilities that were subject to ongoing modernization in 2023.

Digital resources like the Metris All-in-One platform, featuring over 50 applications, and specialized tools such as Smart Die, are crucial for process optimization and customer support. In 2024, Metris solutions reportedly improved customer uptime by an estimated 15%.

Financial capital, evidenced by a substantial order backlog of €10.17 billion as of March 31, 2025, provides the capacity for continuous R&D investment and strategic flexibility.

ANDRITZ's offerings are engineered to streamline operations, boosting efficiency and reducing downtime for clients. For instance, their advanced automation and digitalization solutions in the pulp and paper sector have been shown to increase throughput by up to 15% in certain applications.

These technologies lead to superior production quality and greater reliability, ultimately lowering operating expenses. In 2024, ANDRITZ reported a significant increase in order intake for their digital solutions, reflecting customer demand for cost reduction and performance improvement.

This enhanced operational performance directly contributes to improved profitability for their customers. By minimizing waste and maximizing output, ANDRITZ helps businesses achieve a stronger bottom line.

ANDRITZ delivers comprehensive plant solutions and advanced technologies, acting as a full-line supplier across the entire lifecycle of industrial facilities. This integrated approach ensures optimized performance and operational reliability for clients, as evidenced by their €10.5 billion order intake in 2023.

The company champions sustainable and green technologies, offering solutions for decarbonization and waste-to-value processes, which directly address the growing demand for environmentally responsible operations. In 2024, ANDRITZ secured significant orders for biomass boilers, aiding clients in reducing their environmental impact.

ANDRITZ's advanced automation and digitalization solutions boost operational efficiency, increasing throughput by up to 15% in some pulp and paper applications and leading to lower operating expenses. Their commitment to technological leadership, backed by a 2023 R&D investment of €272.2 million, ensures customers access state-of-the-art technologies to remain competitive.

Furthermore, ANDRITZ focuses on building enduring customer relationships through comprehensive lifecycle services, ensuring peak product performance and operational continuity with rapid, cost-effective support. The service business's substantial revenue contribution in 2023 highlights the value customers place on this ongoing expertise.

ANDRITZ maintains a significant global footprint with 280 locations across more than 80 countries, ensuring they are close to their customers wherever they operate. This extensive network is crucial for providing tailored support and efficient service delivery, fostering stronger customer connections.

This proximity allows ANDRITZ to tap into local expertise, which is vital for understanding the unique operational challenges and requirements of diverse markets. By being physically present, they can offer more responsive and relevant solutions, directly impacting customer satisfaction and building trust.

For instance, in 2024, ANDRITZ continued to invest in its service centers, enhancing local capabilities for key industries like pulp and paper and hydropower. This strategic focus on local presence directly supports their goal of being a reliable partner, deeply integrated into their customers' value chains.

ANDRITZ builds strong customer relationships through a combination of dedicated service, strategic partnerships, and a solutions-oriented approach. Their global presence and digital platforms further enhance these connections, ensuring tailored support and continuous improvement.

The company's service business is a testament to customer trust, with orders reaching €3.5 billion in 2023. This growth highlights the value customers place on ANDRITZ's ongoing expertise and commitment to maximizing operational uptime and product quality.

Strategic alliances, such as those with Suzano and ArcelorMittal, demonstrate a shared vision for innovation and sustainability, cemented by collaborative projects and a commitment to environmental responsibility.

ANDRITZ's investment in local service centers and digital tools like Metris underscores its dedication to providing responsive, data-driven support, ensuring customers can optimize their operations and navigate green transitions effectively.

Andritz actively utilizes its digital platforms, including the Metris All-in-One platform, to deliver advanced digital solutions. These services encompass remote monitoring and in-depth data analysis, crucial for optimizing customer operations.

The company's corporate website and dedicated investor relations portal are vital channels for communicating essential information and fostering engagement with all stakeholders, from individual investors to industry professionals.

These digital touchpoints significantly broaden Andritz's reach and improve the efficiency of its service delivery, ensuring customers and investors have timely access to critical data and updates.

ANDRITZ utilizes a multi-faceted channel strategy, combining direct sales with a robust global network of subsidiaries and service centers. This ensures deep market penetration and proximity to customers for complex B2B transactions.

Digital platforms, including their Metris All-in-One solution, are increasingly important for delivering advanced services like remote monitoring and data analysis, enhancing customer operational efficiency.

Participation in key industry trade fairs and events, such as LIGNA, serves as a vital channel for lead generation, brand visibility, and direct customer engagement.

The Service and Aftermarket segment, encompassing spare parts and maintenance, represents a significant and growing revenue stream, reinforcing long-term customer partnerships.

The Metals Industry segment for ANDRITZ primarily serves metalworking and steel producers, including those focused on cold-rolled carbon steel, metal strip, and stainless steel. ANDRITZ offers advanced technology, comprehensive plant solutions, and digital systems tailored for metal processing applications within this sector.

In 2024, this segment experienced a slowdown in the first half due to subdued market demand. However, a noticeable recovery began in the latter half of the year, indicating a rebound in activity for metal processing and production.

ANDRITZ serves a diverse range of customer segments, each with unique needs and market dynamics. These include the vital Hydropower sector, comprising utilities and developers focused on renewable energy, and the Pulp & Paper industry, encompassing global manufacturers of paper products. Additionally, the Metals Industry segment caters to metalworking and steel producers, while the Environment & Energy sector addresses municipal and industrial clients seeking sustainable solutions.

Beyond these core areas, ANDRITZ also supports a broad spectrum of other industrial and manufacturing clients, including those in the automotive, construction, and heavy machinery sectors, providing specialized equipment and integrated solutions to optimize their production processes.

The company's performance across these segments shows varied trends. For instance, the Hydropower sector experienced robust expansion in 2024 and early 2025, while the Pulp & Paper sector saw a significant rebound in order intake in early 2025 after a dip in 2024. The Metals Industry experienced a recovery in the latter half of 2024 after a slowdown. The Environment & Energy segment demonstrated strong growth throughout 2024, driven by demand for sustainable solutions.

Andritz's manufacturing and production costs are substantial, encompassing the procurement of raw materials like steel and specialized alloys, significant energy consumption for machinery, and the ongoing expenses of factory overheads such as labor and facility upkeep. These costs are fundamental to their ability to deliver large-scale plants and equipment.

For instance, in 2023, Andritz reported that its cost of sales, which includes manufacturing and production expenses, amounted to €6.1 billion. This figure underscores the capital-intensive nature of their operations and the direct impact of material and energy prices on their profitability.

Maintaining efficient production processes and optimizing their global supply chain are therefore paramount for Andritz to effectively manage these significant manufacturing costs. This focus on operational efficiency directly influences their competitive pricing and overall financial performance.

Andritz's cost structure is heavily influenced by its significant investment in Research and Development, which aims to maintain technological leadership and develop sustainable solutions. Personnel costs, encompassing a global workforce of around 30,000 employees, are also a major expenditure, covering salaries, benefits, and training.

Manufacturing and production expenses, including raw materials like steel and energy consumption, represent substantial costs, as evidenced by their €6.1 billion cost of sales in 2023. Furthermore, Sales, General, and Administrative Expenses (SG&A), which were €1,047.6 million in 2023, support global operations, sales, marketing, and administrative functions.

The growing service business also adds costs related to field service, spare parts logistics, and digital service infrastructure. Andritz focuses on cost management and operational efficiency to navigate these expenditures and maintain profitability.

Andritz generates revenue through the sale and licensing of its digital solutions and software, notably its Metris platform. These offerings are designed to optimize and automate industrial processes, providing clients with enhanced efficiency. For instance, in 2024, Andritz continued to expand its digital service portfolio, aiming to capture a growing segment of the industrial automation market.

ANDRITZ's revenue streams are diversified, encompassing the sale of new plants and equipment, a robust service and aftermarket business, digital solutions, modernization projects, and a growing focus on green technologies.

The service segment is particularly strong, representing 41% of total revenue in 2024 and climbing to 44% in Q1 2025. Furthermore, sustainable solutions accounted for a significant 44% of revenue in 2024, demonstrating a clear market shift.

New plant and equipment sales, alongside modernization projects for infrastructure like hydropower plants, contribute substantial, often project-based, revenue. Digital solutions, such as the Metris platform, are also an expanding revenue source.