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Grundfos moves into hygienic pumps
JANUARY 2004 ISSN 1359-6128 www.worldpumps.com
NEWS
SULZER PUMPS TO AXE 240 JOBS Sulzer Pumps is to cut its workforce by 240 as part of a broad operational improvement program across the business. The company plans to move some existing production and product lines from higher cost locations such as North America and Finland to lower cost areas like Mexico and China. The program also deals with general operational improvement initiatives such as sourcing, lean manufacturing, product design and project execution. The changes mainly affect Sulzer Pumps operations outside of Switzerland. While a number of initiatives have already started, most of the measures will be implemented over the next two years. As a whole, the program affects about 390 of the 4600 jobs in the overall Sulzer Pumps organization. About 70 Sulzer Pumps positions were cut during 2003, while an estimated 80 jobs will be taken over by new owners or moved within the Sulzer organization. In a statement Sulzer said that the Sulzer Ltd management was committed to making Sulzer Pumps more successful and was convinced
that these measures would significantly improve the competitiveness of the pump division. The program will lead to exceptional charges of SFr23 million in 2003, but is expected to lift operating margins to 8% in 2006. Because of the exceptional charges incurred in 2003, the Sulzer core divisions as a whole will not be able to match their prior-year results, while the EBITA before exceptional items is expected to be above 2002’s level. Sulzer Pumps recently announced 2003 order intake at SFr951 million, up 1% on a year earlier (see News, page 16).
COMMENT Less than a year into his new role as Sulzer Pumps president, Ton Buechner has put a far-reaching improvement program in place. Moving production to lower-cost locations makes economic sense and should go some way towards boosting Sulzer Pumps’ competitiveness and profitability. ■
GRUNDFOS MOVES INTO HYGIENIC PUMPS The Grundfos Group has taken a 94% holding in the German pump manufacturing group Philipp Hilge GmbH. The Stiftung Berdelle-Hilge foundation holds the remaining 6%. Founded by Peter Hilge in 1862, Hilge specializes in hygienic pumps for brewery, dairy, food and pharmaceutical applications. With headquarters in Bodenheim, the company employs 200 people and has three manufacturing plants in Germany, France and Switzerland. Hilge also has smaller installation, service and distribution companies in the UK, Austria and India. Grundfos has plans to double Hilge’s 30 million annual turnover in just a few years. Hilge’s products will continue to be marketed under the Hilge brand name, while Rainer Pfeffer remains as general manager of Hilge and Grundfos’s executive vice president Søren Sørensen becomes chairman of the board of directors. Sørensen considers Hilge’s stainless steel pumps to be a valuable addition to the Grundfos Group’s own product range. “We highly respect the extensive know-how that Hilge has gained over time. Hilge has great expertise in flexible production and its pumps enjoy an extremely positive reputation. By adding
them to our extensive range of industrial pumps and digital dosing pumps, we are able to offer even more attractive solutions to the industries that must comply with particularly strong demands for hygiene,” said Sørensen. Former Hilge owner Hannelore Berdelle-Hilge said it had not been difficult for her to identify with Grundfos’s Be Responsible, Think Ahead, Innovate values. “Like Grundfos, Hilge has based its growth on treating its customers like partners - and on the unusually strong dedication, motivation and responsibility demonstrated by its employees. Both companies face the challenges of the future by developing creative and innovative solutions often in close collaboration with universities and research institutions - and always with respect for the needs of our customers,” said BerdelleHilge. Over recent years, Grundfos has acquired a number of smaller companies to enter new markets or to expand its product range including Finland’s Sarlin, Brazil’s Mark Peerless and Switzerland’s Arnold. According to Group president Jens Jørgen Madsen, Hilge will not be the last acquisition for Grundfos. “We will continue this process methodically. We are constantly on the look-out - both here from Bjerringbro, Denmark, and in our regions abroad,” said Madsen.
CONTENTS CALENDAR 12 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 FEATURE 10-11 IN BRIEF 13 MARKET PROSPECTS 2–4 NEWS 1,12,16 NPD 14 ORDERS 13 PEOPLE 13 STOCK WATCH 15 ISSN 1359-6128/04 © 2004 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
SULZER PUMPS TO AXE 240 JOBS Sulzer Pumps is to cut its workforce by 240 as part of a broad operational improvement program across the business. The company plans to move some existing production and product lines from higher cost locations such as North America and Finland to lower cost areas like Mexico and China. The program also deals with general operational improvement initiatives such as sourcing, lean manufacturing, product design and project execution. The changes mainly affect Sulzer Pumps operations outside of Switzerland. While a number of initiatives have already started, most of the measures will be implemented over the next two years. As a whole, the program affects about 390 of the 4600 jobs in the overall Sulzer Pumps organization. About 70 Sulzer Pumps positions were cut during 2003, while an estimated 80 jobs will be taken over by new owners or moved within the Sulzer organization. In a statement Sulzer said that the Sulzer Ltd management was committed to making Sulzer Pumps more successful and was convinced
that these measures would significantly improve the competitiveness of the pump division. The program will lead to exceptional charges of SFr23 million in 2003, but is expected to lift operating margins to 8% in 2006. Because of the exceptional charges incurred in 2003, the Sulzer core divisions as a whole will not be able to match their prior-year results, while the EBITA before exceptional items is expected to be above 2002’s level. Sulzer Pumps recently announced 2003 order intake at SFr951 million, up 1% on a year earlier (see News, page 16).
COMMENT Less than a year into his new role as Sulzer Pumps president, Ton Buechner has put a far-reaching improvement program in place. Moving production to lower-cost locations makes economic sense and should go some way towards boosting Sulzer Pumps’ competitiveness and profitability. ■
GRUNDFOS MOVES INTO HYGIENIC PUMPS The Grundfos Group has taken a 94% holding in the German pump manufacturing group Philipp Hilge GmbH. The Stiftung Berdelle-Hilge foundation holds the remaining 6%. Founded by Peter Hilge in 1862, Hilge specializes in hygienic pumps for brewery, dairy, food and pharmaceutical applications. With headquarters in Bodenheim, the company employs 200 people and has three manufacturing plants in Germany, France and Switzerland. Hilge also has smaller installation, service and distribution companies in the UK, Austria and India. Grundfos has plans to double Hilge’s 30 million annual turnover in just a few years. Hilge’s products will continue to be marketed under the Hilge brand name, while Rainer Pfeffer remains as general manager of Hilge and Grundfos’s executive vice president Søren Sørensen becomes chairman of the board of directors. Sørensen considers Hilge’s stainless steel pumps to be a valuable addition to the Grundfos Group’s own product range. “We highly respect the extensive know-how that Hilge has gained over time. Hilge has great expertise in flexible production and its pumps enjoy an extremely positive reputation. By adding
them to our extensive range of industrial pumps and digital dosing pumps, we are able to offer even more attractive solutions to the industries that must comply with particularly strong demands for hygiene,” said Sørensen. Former Hilge owner Hannelore Berdelle-Hilge said it had not been difficult for her to identify with Grundfos’s Be Responsible, Think Ahead, Innovate values. “Like Grundfos, Hilge has based its growth on treating its customers like partners - and on the unusually strong dedication, motivation and responsibility demonstrated by its employees. Both companies face the challenges of the future by developing creative and innovative solutions often in close collaboration with universities and research institutions - and always with respect for the needs of our customers,” said BerdelleHilge. Over recent years, Grundfos has acquired a number of smaller companies to enter new markets or to expand its product range including Finland’s Sarlin, Brazil’s Mark Peerless and Switzerland’s Arnold. According to Group president Jens Jørgen Madsen, Hilge will not be the last acquisition for Grundfos. “We will continue this process methodically. We are constantly on the look-out - both here from Bjerringbro, Denmark, and in our regions abroad,” said Madsen.
CONTENTS CALENDAR 12 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 FEATURE 10-11 IN BRIEF 13 MARKET PROSPECTS 2–4 NEWS 1,12,16 NPD 14 ORDERS 13 PEOPLE 13 STOCK WATCH 15 ISSN 1359-6128/04 © 2004 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.