Outlook 2023

For 2023 as a whole, EMS is expecting a further weakening of the global economy. High core inflation coupled with higher interest rates will have a lasting negative effect on consumer spending in Europe and the USA. In addition, European industry is suffering under worsening framework conditions. In China, also due to the stagnating construction industry, no clear recovery can be expected soon.

EMS will continue to follow the successful strategy of concentration on specialties in the main area of High Performance Polymers. In the currently challenging economic situation, innovative solutions focusing on achievement of cost, fuel and CO2 savings are in great demand from international customers. EMS will intensify its development activities and, in addition, has decided to massively increase customer-oriented development in Asia. The short development times of Asian customers allows EMS to quickly realize new business in these markets. EMS will thereby place particular focus on innovative development projects within the ambitious Chinese electric vehicle industry. EMS will expand its global market position and achieve disproportionally higher growth compared to the market.

EMS remains confident for the future. Significant growth of business in China, as well as the USA, is expected for the next years. Future developments in Europe will depend on its regional economic policy. To satisfy rising demand, EMS is investing CHF 300 million in capacity expansion at the main production site in Domat/Ems (Switzerland). The program is being implemented as planned.

Also in the field of sustainability, EMS has already been a pioneer for decades. By saving weight and energy, especially in the automotive industry, a further reduction of 64,800 tons of CO2 emissions is achieved every year. The performance at EMS production locations also looks very impressive as focus was put very early on process improvements and energy savings, bio-mass power and hydroelectricity. With these measures, EMS has already been CO2-neutral at all locations worldwide since 2020! Further programs have been implemented.

For 2023 as a whole, and due to the weak global economy and an unfavorable currency situation, EMS is now expecting net sales and net operating income (EBIT) below previous year.