PUMPS FOR ALL PURPOSES

ENERGY EFFICIENCY: Grundfos makes pumps for heating and cooling plants, oil burners and gas boilers, pumps for wastewater disposal and industrial pumps. In fact, half of all circulation pumps in Europe are from Grundfos.

“Every new product from Grundfos must be more energy efficient than its predecessor, so all Grundfos products are unique,” says CEO Søren Sørensen, who heads sales and marketing for the group. “Product uniqueness is something in which Denmark, as an industrial nation, generally leads the way,” he says, “We constantly aim to be innovative, so that our pumps have minimal environmental impact. It’s a win-win-win situation, because we can sell more, consumers have lower power costs, and the environment becomes less burdened.”

Turbo-growth
One of Grundfos’ most important collaboration countries is Russia, which the company considers a turbo-growth area. The entire Eastern European region grew by 30% in 2006 compared to the year before. Grundfos generated revenues in the region of EUR 300 million in 2006, and forecasts revenues for 2007 at EUR 350 million, with Russia alone accounting for EUR 100 million, corresponding to 50% growth. By 2010 revenues in the region are forecast to exceed EUR 500 million, and more than EUR 200 million in Russia alone. Today Grundfos employs approximately 2,000 people in eastern Europe of whom 300 are in Russia. The largest production unit outside Denmark is in Hungary, where production for the entire Grundfos group is carried out.

Grundfos has made two major investments in Russia: establishing its own sales company, and in 2005 opening a new factory, which both produces and distributes to the Russian market.

In China, which is also a large growth market, Grundfos has established both a factory and a sales company, employing a total of 800 people. Annual growth is 25% and 2006 revenues were approximately USD 100 million. Grundfos primarily sells pumps to the industrial sector, particularly the construction and waste water management industries. As in Russia, Grundfos employs directors with local language and cultural understanding.

http://www.grundfos.com

Great American potential North America has great potential for pump manufacturer Grundfos, which has a presence in Mexico, USA and Canada. The group is building a new factory in Mexico, which is slated for completion mid-2007. It has also established a large sales company in Kansas and a factory in California. In 2006 Grundfos acquired the American pump factory Paco. “We have moved elements of our development activities to the USA and are investing in the extension of our sales and marketing competences,” says Søren Sørensen of Grundfos. “Today we have only 8-10% of the US market, so for us the growth potential is considerable. If we hold to our strategy, I am convinced we can double our market share and increase our sales from the current USD 250 million to a level above USD 500 million by 2010.”

 

Pumps of the future In 2005, world leading pump manufacturer Grundfos introduced a new range of energy saving pumps rated "A" according to the EU energy labelling system. In 2006 alone the new pumps saved European consumers approximately 400 mill. kW.      "It is an upgrading of our circulationpump programme," says head of sales and marketing Jan Warrer. "We have scrutinised every single component of our pumps in order to improve their energy  efficiency. Our new pumps can save up to 80% more energy."