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EBARA EXPANDS PUMP PRODUCTION IN CHINA
JULY 2002 ISSN 1359-6128
NEWS
EBARA EXPANDS PUMP PRODUCTION IN CHINA Ebara Corp is set to increase production of general-purpose pumps in China. A report in the Nikkei Business Daily says that the Japanese pump company will start full-scale production of pumps at its Taiwanese manufacturing plant in Jiangsu Province later this summer. The plant is expected to produce ¥300 million worth of pumps in fiscal 2003, which will be exported to Japan and Southeast Asia. According to the Nikkei Business Daily, Ebara is also planning to build an integrated production facility for general-purpose pumps in Beijing by the end of 2003, outsourcing some operations to local manufacturers. Ebara reported a consolidated net loss of ¥17.9 billion for the fiscal year ended 31 March 2002, compared with a year-earlier profit of ¥2.6 billion (see Pump Industry Analyst, June 2002). Group sales were down 6% to ¥562.6 billion, while operating profit fell 75% to ¥3.5 billion. For the year ending March 2003, Ebara is predicting a ¥3 billion net profit on sales of ¥580 billion.
• Meanwhile Dalian, a coastal city in northeast China’s Liaoning Province, is looking for overseas investors for its Pump Industry Park. Situated at the Dalian Digital and DNA Port, the park will cover an area of 200 000 square metres. Dalian Danai Pump Co Ltd, Dalian Sulzer Pumps and Compressor Co Ltd, Dalian Burgmann Co Ltd and Dalian Hermetic Pump Co Ltd have already signed up. Joint venture projects with Lewa Pump and Mono Pumps are reported to be under negotiation. For further information, contact Liu Jiangjun, Tel: +86 411 3695174, Fax: +86 411 3629816.
COMMENT China offers enormous potential both as a pump market and pump manufacturing base. As the country continues to open up to foreign investors, international pump companies are moving in or strengthening their existing operations. Where Ebara leads, others will surely follow. ■
GRUNDFOS APPOINTS NEW CEO AND PRESIDENT Grundfos CEO and group president Niels Due Jensen is planning to retire at the end of this year. Due Jensen, who turns 60 next spring, will be succeeded from 1 January 2003 by executive vice president Jens Jørgen Madsen. Fifty-two year old Madsen, who has an MBA from Denmark’s Aarhus Business School, joined Grundfos in 1975 as a systems consultant, later becoming a systems manager. In 1985 Madsen was appointed vice president for finances and since 1991 he has been group executive vice president and a member of the Grundfos group management, responsible for group finances, group IT, corporate planning and group marketing. In 1996 Madsen’s area of responsibility was expanded to include Grundfos Finance A/S, the group’s internal bank. Since 1985, Madsen has been chairman of a number of Grundfos companies, including the German sales company, the Eastern European sales region and the Italian companies DAB Pumps and Leader Pump Group. He has also been actively involved in Grundfos’s acquisition strategy from the primary stages of negotiations to the post-acquisition process.
Due Jensen is expected to succeed Lars Kolind as chairman of the board of Grundfos Management A/S at the annual shareholders’ meeting scheduled for April 2003, as well as taking on the role of group chairman. Along with his wife Minna, Due Jensen will continue to work as a Grundfos ambassador around the world, meeting employees and strengthening the group’s corporate culture. In addition, from the start of 2003, Due Jensen will become chairman of Grundfos’s research and technology committee. Due Jensen was generous in his praise of Madsen. He said the new Grundfos CEO was selected because of his qualities as a leader and that he knows how to listen to customers as well as employees and that he thinks strategically and acts accordingly. In his new position Madsen will be responsible for a corporation with an annual production of 10 million pump units, 11 000 employees, and 58 companies in 43 countries. Group turnover in 2001 reached DKr10.2 billion. The Danish pump company was forced to cut 275 jobs late last year in an effort to tackle overproduction within the group (see Pump Industry Analyst, December 2001). A further round of job cuts was announced in the first quarter of 2002 in order to contain costs (see Pump Industry Analyst, May 2002).
CONTENTS NEWS 1,11,12,13,16 MARKET PROSPECTS 2-4 COMPANY PROFILE 5-6 COMPANY WATCH 7-9 PEOPLE 10 ORDERS 10 IN BRIEF 11,12,13 E-BUSINESS 12 DIVIDENDS 13 NPD 14 ECONOMIC REVIEW 14 DIARY 15 ISSN 1359-6128/02/$22.00 © 2002 Elsevier Science Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
NEWS
EBARA EXPANDS PUMP PRODUCTION IN CHINA Ebara Corp is set to increase production of general-purpose pumps in China. A report in the Nikkei Business Daily says that the Japanese pump company will start full-scale production of pumps at its Taiwanese manufacturing plant in Jiangsu Province later this summer. The plant is expected to produce ¥300 million worth of pumps in fiscal 2003, which will be exported to Japan and Southeast Asia. According to the Nikkei Business Daily, Ebara is also planning to build an integrated production facility for general-purpose pumps in Beijing by the end of 2003, outsourcing some operations to local manufacturers. Ebara reported a consolidated net loss of ¥17.9 billion for the fiscal year ended 31 March 2002, compared with a year-earlier profit of ¥2.6 billion (see Pump Industry Analyst, June 2002). Group sales were down 6% to ¥562.6 billion, while operating profit fell 75% to ¥3.5 billion. For the year ending March 2003, Ebara is predicting a ¥3 billion net profit on sales of ¥580 billion.
• Meanwhile Dalian, a coastal city in northeast China’s Liaoning Province, is looking for overseas investors for its Pump Industry Park. Situated at the Dalian Digital and DNA Port, the park will cover an area of 200 000 square metres. Dalian Danai Pump Co Ltd, Dalian Sulzer Pumps and Compressor Co Ltd, Dalian Burgmann Co Ltd and Dalian Hermetic Pump Co Ltd have already signed up. Joint venture projects with Lewa Pump and Mono Pumps are reported to be under negotiation. For further information, contact Liu Jiangjun, Tel: +86 411 3695174, Fax: +86 411 3629816.
COMMENT China offers enormous potential both as a pump market and pump manufacturing base. As the country continues to open up to foreign investors, international pump companies are moving in or strengthening their existing operations. Where Ebara leads, others will surely follow. ■
GRUNDFOS APPOINTS NEW CEO AND PRESIDENT Grundfos CEO and group president Niels Due Jensen is planning to retire at the end of this year. Due Jensen, who turns 60 next spring, will be succeeded from 1 January 2003 by executive vice president Jens Jørgen Madsen. Fifty-two year old Madsen, who has an MBA from Denmark’s Aarhus Business School, joined Grundfos in 1975 as a systems consultant, later becoming a systems manager. In 1985 Madsen was appointed vice president for finances and since 1991 he has been group executive vice president and a member of the Grundfos group management, responsible for group finances, group IT, corporate planning and group marketing. In 1996 Madsen’s area of responsibility was expanded to include Grundfos Finance A/S, the group’s internal bank. Since 1985, Madsen has been chairman of a number of Grundfos companies, including the German sales company, the Eastern European sales region and the Italian companies DAB Pumps and Leader Pump Group. He has also been actively involved in Grundfos’s acquisition strategy from the primary stages of negotiations to the post-acquisition process.
Due Jensen is expected to succeed Lars Kolind as chairman of the board of Grundfos Management A/S at the annual shareholders’ meeting scheduled for April 2003, as well as taking on the role of group chairman. Along with his wife Minna, Due Jensen will continue to work as a Grundfos ambassador around the world, meeting employees and strengthening the group’s corporate culture. In addition, from the start of 2003, Due Jensen will become chairman of Grundfos’s research and technology committee. Due Jensen was generous in his praise of Madsen. He said the new Grundfos CEO was selected because of his qualities as a leader and that he knows how to listen to customers as well as employees and that he thinks strategically and acts accordingly. In his new position Madsen will be responsible for a corporation with an annual production of 10 million pump units, 11 000 employees, and 58 companies in 43 countries. Group turnover in 2001 reached DKr10.2 billion. The Danish pump company was forced to cut 275 jobs late last year in an effort to tackle overproduction within the group (see Pump Industry Analyst, December 2001). A further round of job cuts was announced in the first quarter of 2002 in order to contain costs (see Pump Industry Analyst, May 2002).
CONTENTS NEWS 1,11,12,13,16 MARKET PROSPECTS 2-4 COMPANY PROFILE 5-6 COMPANY WATCH 7-9 PEOPLE 10 ORDERS 10 IN BRIEF 11,12,13 E-BUSINESS 12 DIVIDENDS 13 NPD 14 ECONOMIC REVIEW 14 DIARY 15 ISSN 1359-6128/02/$22.00 © 2002 Elsevier Science Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.