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Ebara forms Chinese JV to manufacture large pumps
PUMP INDUSTRY ANALYST
NEWS
GRUNDFOS OPENS RUSSIAN FACTORY TO SERVE BOOMING PUMP MARKET Grundfos has invested DKr100 million in a new 10 000 sq m pump manufacturing facility outside Moscow. The plant, located in Istra, 60 km west of Moscow, will produce CR pumps and booster systems for the Russian market. Grundfos experienced an impressive 40% increase in sales in the Russian market in 2004, bringing group turnover in Russia to more than DKr400 million. “We expect this extremely positive trend to continue. For some time, our distribution channels have struggled to keep up with market demands. But during 2004, we have invested in building internal sales competencies and targeted external sales and distribution channels to ensure professional service to our customers,” explained Grundfos group president Jens Jørgen Madsen. “At the same time, we would like to show that we appreciate the great interest in our products
by ensuring optimum ability to supply to our customers. That is why we have invested in production facilities, storeroom and a distribution centre and why we have made sure to have plenty of room to expand production capacity in Russia in the future.” The Istra facility will be headed up by Victor Dementiev, general manager of Grundfos Russia, and by Galina Biryukova, director of Grundfos Manufacturing Russia. Initially, this Russian factory will assemble and test components from other Grundfos production facilities located in Europe. However, Grundfos has plans to find local Russian suppliers who can take part in the supply chain. Grundfos first entered the then Russian market in 1962, opening an agent’s office in the country in 1992. By 1998, Grundfos had opened its own sales company in Moscow. Today the group has 18 offices throughout the country employing about 160
people. Grundfos also has 87 service facilities in 55 cities throughout Russia. For Grundfos, the most important products in the Russian market are currently its Alpha+, UPS, CR, SP and Sololift ranges. Grundfos is investing heavily in production facilities in growth markets. This new Russian factory, together with factory openings in China (30 000 m2), India (5000 m2) and Hungary (10 000 m2), will see Grundfos open 55 000 m2 of new production space this year alone (see Pump Industry Analyst, April 2005).
COMMENT The booming Russian economy and the huge demand for the replacement and renovation of existing pump plants lie behind Grundfos’s decision to invest in a Russian pump production facility. While Russia is currently one of the fastest growing markets for Grundfos, the Russian market still offers huge potential for Grundfos’s energy-efficient pumps. Globalization holds no fears for Grundfos as the company invests in overseas production. With further new factories in China, India and Hungary, Grundfos is boldly going after global growth. ■
JUNE 2005 ISSN 1359-6128 www.worldpumps.com
EBARA FORMS CHINESE JV TO MANUFACTURE LARGE PUMPS Ebara Corp is reported to be setting up a joint venture in China later this year to manufacture large high-pressure pumps. Ebara Boshan Pump Co, located in Shandong Province, will be 51% owned by Ebara and 49% by the Chinese pump manufacturer Shandong Boshan Pump Science and Technology Co (SBPST). According to a report in The Nihon Keizai Shimbun, the new firm is planning to build a plant that will come onstream in August 2006. The joint venture is aiming for sales of ¥3 billion during its first year and ¥10 billion by fiscal 2010. The pumps manufactured at the new plant will be targeted at power stations, petrochemical plants and other facilities in China and in export markets. SBPST is located in the Shandong Peninsula. Established in 1929, the company employs about 2400 people. The product range includes irrigation pumps, field booster-feed pumps, crude oil line pumps, boiler feed pumps and automatic water supply systems. ISO 9001 certified, SBPST exports more than US$20 million worth of pumps to 68 countries.
CONTENTS CALENDAR 13 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 IN BRIEF 10,11,12,13 MARKET PROSPECTS 2–4 MARKET REPORT 11 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15 ISSN 1359-6128/05 © 2005 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier 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
GRUNDFOS OPENS RUSSIAN FACTORY TO SERVE BOOMING PUMP MARKET Grundfos has invested DKr100 million in a new 10 000 sq m pump manufacturing facility outside Moscow. The plant, located in Istra, 60 km west of Moscow, will produce CR pumps and booster systems for the Russian market. Grundfos experienced an impressive 40% increase in sales in the Russian market in 2004, bringing group turnover in Russia to more than DKr400 million. “We expect this extremely positive trend to continue. For some time, our distribution channels have struggled to keep up with market demands. But during 2004, we have invested in building internal sales competencies and targeted external sales and distribution channels to ensure professional service to our customers,” explained Grundfos group president Jens Jørgen Madsen. “At the same time, we would like to show that we appreciate the great interest in our products
by ensuring optimum ability to supply to our customers. That is why we have invested in production facilities, storeroom and a distribution centre and why we have made sure to have plenty of room to expand production capacity in Russia in the future.” The Istra facility will be headed up by Victor Dementiev, general manager of Grundfos Russia, and by Galina Biryukova, director of Grundfos Manufacturing Russia. Initially, this Russian factory will assemble and test components from other Grundfos production facilities located in Europe. However, Grundfos has plans to find local Russian suppliers who can take part in the supply chain. Grundfos first entered the then Russian market in 1962, opening an agent’s office in the country in 1992. By 1998, Grundfos had opened its own sales company in Moscow. Today the group has 18 offices throughout the country employing about 160
people. Grundfos also has 87 service facilities in 55 cities throughout Russia. For Grundfos, the most important products in the Russian market are currently its Alpha+, UPS, CR, SP and Sololift ranges. Grundfos is investing heavily in production facilities in growth markets. This new Russian factory, together with factory openings in China (30 000 m2), India (5000 m2) and Hungary (10 000 m2), will see Grundfos open 55 000 m2 of new production space this year alone (see Pump Industry Analyst, April 2005).
COMMENT The booming Russian economy and the huge demand for the replacement and renovation of existing pump plants lie behind Grundfos’s decision to invest in a Russian pump production facility. While Russia is currently one of the fastest growing markets for Grundfos, the Russian market still offers huge potential for Grundfos’s energy-efficient pumps. Globalization holds no fears for Grundfos as the company invests in overseas production. With further new factories in China, India and Hungary, Grundfos is boldly going after global growth. ■
JUNE 2005 ISSN 1359-6128 www.worldpumps.com
EBARA FORMS CHINESE JV TO MANUFACTURE LARGE PUMPS Ebara Corp is reported to be setting up a joint venture in China later this year to manufacture large high-pressure pumps. Ebara Boshan Pump Co, located in Shandong Province, will be 51% owned by Ebara and 49% by the Chinese pump manufacturer Shandong Boshan Pump Science and Technology Co (SBPST). According to a report in The Nihon Keizai Shimbun, the new firm is planning to build a plant that will come onstream in August 2006. The joint venture is aiming for sales of ¥3 billion during its first year and ¥10 billion by fiscal 2010. The pumps manufactured at the new plant will be targeted at power stations, petrochemical plants and other facilities in China and in export markets. SBPST is located in the Shandong Peninsula. Established in 1929, the company employs about 2400 people. The product range includes irrigation pumps, field booster-feed pumps, crude oil line pumps, boiler feed pumps and automatic water supply systems. ISO 9001 certified, SBPST exports more than US$20 million worth of pumps to 68 countries.
CONTENTS CALENDAR 13 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 IN BRIEF 10,11,12,13 MARKET PROSPECTS 2–4 MARKET REPORT 11 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15 ISSN 1359-6128/05 © 2005 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier 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.