| 16/05/2003 - Siemens Builds up Strength in Process Automation |
Siemens is continuing its activities for international expansion in process automation. As a result Siemens Automation and Drives (A&D) and Danfoss A/S, Nordborg, Denmark, have signed an agreement on May 12, 2003 about the acquisition of the Flow Division of Danfoss by Siemens Automation & Drives.
According to Anton S. Huber, member of the A&D Group Executive Management, the greatest potential for growth for A&D lies in process automation. Around a quarter of today's requirement for process instrumentation are flow meters: "With the acquisition of the Danfoss Flow Division, we consistently continue to expand our process automation sector. The Danfoss flow rate meters perfectly complement our process instrumentation and close an important product and technology gap in our portfolio. We are also considerably improving our market access to important customers and regions. The enhanced product portfolio improves our competitive position considerably and we will become an even more attractive partner for our customers".
Jørgen M. Clausen, President and CEO of Danfoss, comments: "This step is intended to place the innovative Danfoss flow measurement technology in a leading market position and will allow Danfoss to concentrate on its core businesses in the future."
The Danfoss Flow Division, a leading manufacturer of electronic flow measurement devices for liquids and gases, achieved annual sales of around 60 million euros in 2002, employs 450 people and has a worldwide sales organization as well as two manufacturing sites - at the company headquarters in Nordborg and in Stonehouse, UK. The product portfolio comprises products involving flow-measuring systems with magnetic-inductive, Coriolis and ultrasound measurement features.
The agreement is designed to combine the flow activities of Siemens and the Danfoss Flow Division into a new A&D business unit, Siemens Flow Instruments, with its headquarters in Nordborg, which will be responsible worldwide for development, production and marketing.
"Our Flow Division has achieved good results in the last few years with its magnetic, Coriolis and ultrasound products and has grown considerably," says Clausen. According to Clausen, customers are tending towards the direction of single source; they want to purchase their entire field instrumentation from a single supplier. He sees better opportunities for the Danfoss Flow Division with a complete systems provider such as Siemens. "I am convinced that Siemens will further improve our flow business, will make jobs even more secure and open up new career prospects for our employees," he adds.
According to Huber, Siemens needs a wide range of field devices in orderto be able to offer its customers optimum solutions: "Field devices are becoming more and more powerful due to integrated processors and they communicate via digital field buses with the control system. Process systems are thus further optimized, their efficiency is increased and maintenance costs are lowered. Field devices are an important element of our Totally Integrated Automation strategy. We can provide our customers with automation solutions comprising optimally tuned products and components from a single source."
Background information:
To reinforce its process automation activities, Siemens A&D acquired themost experienced gas chromatograph manufacturer Applied Automation (USA) in mid-1999, parts of the flow meter technology supplier Turbo-Werk Messetechnik, Cologne, in late 1999, and at the beginning of 2000, what is now Siemens Milltronics Process Instruments (Canada), the market leader in ultrasonic level measurement technology. The purchase of what is now Siemens Moore Process Automation (USA) at the start of 2000, with its process measurement equipment and control system solutions, also enhanced A&D's North American presence. By acquiring majority shares in Axiva at the end of 2000, A&D strengthened its know-how in the chemical and pharmaceutical process industry sectors. At the beginning of 2001, the Swedish company AltOptronic was acquired, a leading supplier of laser spectrometry products.
Danfoss, headquartered in Nordborg, is Denmark's largest industrial Group In 2002, the Danfoss Group had net sales of EUR2.008 billion and 16,972 employees in more than 100 companies around the world. Danfoss is an international Group and belongs to the leaders in research, development and production of mechanical and electronic components for several industrial branches. Danfoss offers mechanical and electronic components worldwide for Refrigeration & Air conditioning, Heating & Water and Motion Controls.
The Siemens Automation and Drives Group (A&D), Nuremberg/Erlangen, Germany, is the leading manufacturer in this field worldwide. Products supplied by A&D include standard products for the manufacturing and process industries and for the electrical installation industry as well as system solutions, for example for machine tools, and solutions for whole industries such as the automation of entire automobile factories or chemical plants. Supplementing this range of products and services, A&D also offers software for linking production and management (horizontal and vertical IT integration) and for optimizing production processes. A&D employs 51,200 people worldwide and in fiscal year 2002 (to September 30) earned an operational profit of EUR723 million on sales of EUR8.6 billion and orders of EUR8.7 billion.
For general press enquiries and corporate information:
Ian Bowman: Marketing Manager
Siemens Automation & Drives:
Tel: 0161 446 6378
www.siemens-industry.co.uk
ian.bowman@siemens.com |
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