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LG Electronics moves into the water treatment sector
filtration
industryANALYST ISSN 1365-6937 September 2010
www.filtrationindustryanalyst.com
LG Electronics moves into the water treatment sector
S
outh Korean consumer electronics giant LG Electronics has announced plans to enter the water treatment business. LG will invest more than US$400 million over the next ten years in water treatment with the goal of generating US$7 billion in revenue from the sector by 2020 and becoming a top 10 global water treatment company. The US$400 million investment will be used to acquire technology and to build up research and development (R&D) in the water treatment field. LG will concentrate its R&D efforts on developing an advanced membrane filtration system, hiring membrane filtration experts and process engineers. The company will also look towards partnerships and mergers and acquisitions in an effort to grow quickly in the sector. LG says it will begin with industrial water treatment and expand into sewage and drinking water treatment. Longer term the company plans to move into water treatment engi-
Company Profile Rino
7
neering and procurement as well as operation and maintenance across the municipal sector. “The global water crisis isn’t going to go away by itself – governments, citizens and corporations will all have to work closely together,” said Young-ha Lee, president and CEO of the LG Electronics Home Appliance Co. “The water business has been growing by an annual rate of 15% so there’s an incentive for companies to invest in finding solutions, but beyond the business, I think this is one problem where LG’s experience and commitment to finding sustainable solutions will be a huge advantage.”
SPX
8
Company Watch Gamma
9
For further information, visit www.lg.com
In Brief
COMMENT LG Electronics’ strategic move into the water treatment business will bring more balance to the group’s portfolio and should reduce its dependency on the highly competitive consumer electronics sector. ■
GLV brands water businesses as Ovivo
G
LV Inc has merged its water businesses under one global brand name – Ovivo. The Ovivo brand, built around the Latin word for life, is the result of a nine-month review following GLV’s acquisition of Christ Water Technology last year. Heritage brands now under Ovivo include AJM Environmental Services, Brackett Green, Caird & Rayner Clark, Copa, Christ Water Technology, Aqua Engineering, Goema, H2 Oil&Gas, Kennicott, UT&S, Eimco Water Technologies, Enviroquip, Jones + Attwood, E Tomkinson & Co, Aquator, Tepro and Innoterv. “Our consolidation strategy is in response to three key market drivers,” explained Richard Verreault, GLV’s president and
Contents
chief operating officer. “Firstly, we want to position ourselves to take full advantage of the growth opportunities which are widely renowned within the water industry. Secondly, we recognise the trend towards the industry globalisation and it demands that we pool our expertise and resources to ensure our broad portfolio of technologies and know-how is available in all the countries we choose to serve around the world. Thirdly, by consolidating our businesses into one brand, we aim to challenge the status quo imposed by the top players in the market.” For further information, visit www.ovivowater.com and www.glv.com
Indutrade
9
Kaydon
10
Lydall
10
MFRI
11
Pentair
11
Diary
15
Exchange Rates
16
Financial Calendar
14 3,4,6
New Product Developments
14
News LG Electronics moves into the water treatment sector
1
GLV brands water businesses as Ovivo
1
Duoyuan Global Water initiates independent review of accounting standards 2 Clark-Reliance acquires Oil Filtration Systems
2
Merck Millipore opens new technology centre in Brazil
2
DESMI to sell DESMI Ocean Guard ballast water treatment systems
3
Dutch business school launches Executive MBA in Water Management 3 Solid gains in first half revenues and orders at ItN Nanovation
4
Voltea completes E3.6 million financing round 4 Eriez buys Hydroflow Filtration Systems 16 Alfa Laval makes SEK5027mn cash offer for Munters 16 Opinion Nor any drop
5–6
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
ISSN 1365-6937/10 © 2010 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.
industryANALYST ISSN 1365-6937 September 2010
www.filtrationindustryanalyst.com
LG Electronics moves into the water treatment sector
S
outh Korean consumer electronics giant LG Electronics has announced plans to enter the water treatment business. LG will invest more than US$400 million over the next ten years in water treatment with the goal of generating US$7 billion in revenue from the sector by 2020 and becoming a top 10 global water treatment company. The US$400 million investment will be used to acquire technology and to build up research and development (R&D) in the water treatment field. LG will concentrate its R&D efforts on developing an advanced membrane filtration system, hiring membrane filtration experts and process engineers. The company will also look towards partnerships and mergers and acquisitions in an effort to grow quickly in the sector. LG says it will begin with industrial water treatment and expand into sewage and drinking water treatment. Longer term the company plans to move into water treatment engi-
Company Profile Rino
7
neering and procurement as well as operation and maintenance across the municipal sector. “The global water crisis isn’t going to go away by itself – governments, citizens and corporations will all have to work closely together,” said Young-ha Lee, president and CEO of the LG Electronics Home Appliance Co. “The water business has been growing by an annual rate of 15% so there’s an incentive for companies to invest in finding solutions, but beyond the business, I think this is one problem where LG’s experience and commitment to finding sustainable solutions will be a huge advantage.”
SPX
8
Company Watch Gamma
9
For further information, visit www.lg.com
In Brief
COMMENT LG Electronics’ strategic move into the water treatment business will bring more balance to the group’s portfolio and should reduce its dependency on the highly competitive consumer electronics sector. ■
GLV brands water businesses as Ovivo
G
LV Inc has merged its water businesses under one global brand name – Ovivo. The Ovivo brand, built around the Latin word for life, is the result of a nine-month review following GLV’s acquisition of Christ Water Technology last year. Heritage brands now under Ovivo include AJM Environmental Services, Brackett Green, Caird & Rayner Clark, Copa, Christ Water Technology, Aqua Engineering, Goema, H2 Oil&Gas, Kennicott, UT&S, Eimco Water Technologies, Enviroquip, Jones + Attwood, E Tomkinson & Co, Aquator, Tepro and Innoterv. “Our consolidation strategy is in response to three key market drivers,” explained Richard Verreault, GLV’s president and
Contents
chief operating officer. “Firstly, we want to position ourselves to take full advantage of the growth opportunities which are widely renowned within the water industry. Secondly, we recognise the trend towards the industry globalisation and it demands that we pool our expertise and resources to ensure our broad portfolio of technologies and know-how is available in all the countries we choose to serve around the world. Thirdly, by consolidating our businesses into one brand, we aim to challenge the status quo imposed by the top players in the market.” For further information, visit www.ovivowater.com and www.glv.com
Indutrade
9
Kaydon
10
Lydall
10
MFRI
11
Pentair
11
Diary
15
Exchange Rates
16
Financial Calendar
14 3,4,6
New Product Developments
14
News LG Electronics moves into the water treatment sector
1
GLV brands water businesses as Ovivo
1
Duoyuan Global Water initiates independent review of accounting standards 2 Clark-Reliance acquires Oil Filtration Systems
2
Merck Millipore opens new technology centre in Brazil
2
DESMI to sell DESMI Ocean Guard ballast water treatment systems
3
Dutch business school launches Executive MBA in Water Management 3 Solid gains in first half revenues and orders at ItN Nanovation
4
Voltea completes E3.6 million financing round 4 Eriez buys Hydroflow Filtration Systems 16 Alfa Laval makes SEK5027mn cash offer for Munters 16 Opinion Nor any drop
5–6
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
ISSN 1365-6937/10 © 2010 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.