Grundfos establishes new company in Romania - continues rapid growth in E. Europe
For the past few years, one of Grundfos' main areas of growth has been Eastern Europe. With growth rates around 20% -- 40-50% in Russia -- and a total turnover of approx. US$325.5 million, Grundfos investments in this region now include opening a sales company Jan. 1 in Romania...
BJERRINGBRO, Denmark, Jan. 17, 2006 -- For the past few years, one of Grundfos' main areas of growth has been Eastern Europe. With growth rates around 20% -- 40-50% in Russia -- and a total turnover of approx. DKK 2 billion [US$325.5 million], Grundfos invests unabatedly in this region, e.g. by now opening a sales company in Romania on Jan. 1.
Executive Vice President Soren O. Sorensen, responsible for the Eastern European region, says: "Over a five-year period, Eastern Europe will become one of the Grundfos Group's most significant sales regions, in terms of both turnover and earnings. Naturally, this requires a number of investments. With the Group's latest addition in Romania, we are well on the way to realising our strategic objective for the region, and the development certainly does not end here. Kazakhstan and Bulgary, for instance, are among the countries destined for upcoming company establishments."
Currently, the Group has 1,500 employees in Eastern Europe, and the coming years will see a further development of Grundfos' growth strategy for the region. In addition to the existing sales companies in Poland, Russia, the Czech Republic, Hungary and the Ukraine, a number of new companies will be set up in the coming years to make up the core of the Group's sales and marketing strategies.
The new company in Romania is expected to reach a 2006 turnover of approx. DKK 80 million [US$12.98 million], as well as to double this amount in four to five years. Romanian Catalin Soldan will be Managing Director.
During the past years, Romania has improved its economic as well as political stability, and, consequently, increased its purchasing power. This has resulted in higher living standards as well as increased household needs. Furthermore, the country is expected to improve its connection with the EU in the near future.
These relations, along with an acknowledged need for renovating the Romanian supply sector, represent a huge potential for the sale of pumps for heating, water supply and waste water purposes. Thus, Romania is an especially interesting market for pumps -- especially in the district heating sector -- and with this establishment, Grundfos expects to attain a considerable share of future infrastructural investments in the country.
With its near 14,000 employees, the Grundfos Group (www.grundfos.com) develops, manufactures and sells pumps, and the company is represented in 41 countries through its own sales companies. In 2005, our turnover reaches DKK 13 billion [US$2.11 billion].
[US$1 = DKK 6.16]
In other Grundfos news, see:
-- "Grundfos agrees to buy American pump manufacturer"
-- "Grundfos buys South African pump manufacturer"
-- "Grundfos invests heavily in Turkey"