international market strategy - brg · 2012. 8. 24. · the shares of enatec are owned by the dutch...

Australia Council to Ban Wood HeatersChina TOSHIBA to Enter the Chinese Air Conditioner MarketCzech Republic Update on Czech and Slovak CompaniesDenmark DANFOSS A/S: Half-year report 2007Estonia Gas Boilers Produce the Most Heat in Estonia in 2006Germany BOSCH to Cooperate with MTS, RINNAI and ENATECGermany DANFOSS Acquires German DMS Wasser-WärmetechnikSouth America China Air Conditioner Targets South AmericaSweden NIBE Industrier AB Announced Cost-cutting programmeUSA BOSCH Introduces Solar Thermal Systems to the U.S. MarketUSA LENNOX to Start Production in MexicoUSA MASCO Corporation Updates Earnings Guidance For Full-Year 2007

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Heating Newsletter October 07

International Market Strategy

International strategic market research and consultancy on building product and related markets

Europe NEW! Proposal on Renewable Heating Technologies Unveiled

Monthly Special

BRG Consult NewsletterHeating October 2007

Australia: Council to Ban Wood HeatersCOUNCILS are considering banning all wood-burning heaters in Sydney and large towns. The proposal will be discussed at next month's Local Government Association conference, following concerns about the environmental and health effects of wood smoke.

Penrith Mayor Pat Sheehy said some councils had already imposed restrictions in their areas, but a city-wide ban was the only way to eliminate emissions altogether.

At the conference, Penrith Council will propose banning new solid-fuel heaters across the Sydney metropolitan area and all other NSW urban centres.

The motion also calls for a government-funded buy-back scheme to reduce the number of solid-fuel heaters already operating in cities.

In Sydney, councils at Waverley, Pittwater and Holroyd are among those to have already restricted orbanned new wood heaters.

Source: Sunday Telegraph

China: TOSHIBA to Enter the Chinese Air Conditioner MarketTOSHIBA Corporation, a leading manufacturer of consumer products, plans to take a share in the Chinese air conditioner market.

The company exhibited its products, including household and commercial split and central air conditioners at an opening ceremony for its Shanghai sales company. The air conditioners, adoptingadvanced technologies, can make the room become cool in a short time and control temperature exactly.

Because of the growing consumption capability, there will be strong demand for air conditioners in China, particularly in some coastal cities.

In addition, the company's new residential products can be used as an independent air purifier to absorb and decompound smells of formaldehyde, acetaldehyde, and smoking, explained the executive.

Source: SinoCast

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Czech Republic: Update on Czech and Slovak CompaniesOverall for both Czech and Slovak Republics there has been a growing demand for high efficiency products, due to growing awareness of energy efficiency and increasing energy prices. It is estimatedthat sales of condensing boilers increased by 14% in the first half of 2007. On the other hand, the sales of fossil fuel boilers are expected to decline, mainly due to environmental tax reform coming intoforce from 1st January 2008.

Companies

The Czech manufacturer EKOEFEKT has launched its new automatic pellet boiler EKOEFEKT BIO 23 designed for family houses and small buildings. Financial support of up to 50% of the total price can be obtained from the State Environmental Fund.

The Slovak manufacturer ATTACK introduced its new wall hung condensing boiler ATTACK KZT withfluent modulation in the range of 7-25kw and pellet boiler ATTACK PELLET and PELLET S, destinedfor central heating.

Source: BRG Consult

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Denmark: DANFOSS A/S: Half-year report 2007"With regard to sales, the half-year result fully meets our expectations and it is particularly good to note the positive development on the Russian market. The underlying business still developed reasonably, but the increasing raw material prices put pressure on the profitability. Even though growth in the second half-year seems to be slightly lower, expectations are that we will reach the targets we set for 2007."

Jørgen M. Clausen, President and CEO, DANFOSS A/S

Highlights from the First Half of 2007

Net sales increased by 20% to DKK 10.9 billion from DKK 9.1 billion in the same period last year. Growth was 15%, when converted at last year’s level of exchange rates and adjusted for acquisitionsand divestments, compared to 11% in the same period the year before. Operating profit excl. other income and expenses increased by 20% to DKK 702 million from DKK 584 million, while the operating profit (EBIT) increased to DKK 712 million from DKK 672 million in the first half-year of 2006. Profit before tax was DKK 758 million against DKK 631 million in the same period last year.

The number of employees increased to 21,784 from 19,292 compared to the same time in 2006.

Expectations for 2007

DANFOSS retains its expectations for both net sales and profit for 2007, as was announced in connection with the publication of the 2006 accounts.

Consequently, the net sales are expected to be at the high end of the range DKK 21-22 billion. Compared to 2006, this will equal a growth of between 8% and 13%. The operating profit (EBIT) is expected to be between DKK 1.6 and 1.8 billion, of which acquired companies are expected to contribute with DKK 50 million. The full impact of the companies acquired in 2006 is not expected to show until the 2008 profits. The EBIT margin is expected to be around 8%.

Source: www.danfoss.com

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Estonia: Gas Boilers Produce the Most Heat in Estonia in 2006Gas boilers produced the most heat in Estonia last year, a total of 3,354 gigawatt hours, according to figures of the Statistical Office.

Wood-fueled boilers produced a total of 1,677 gigawatt-hours, oil fuelled boilers 745, peat-fuelled boilers 317 and light fuel oil boilers 286 gigawatt hours. In all 6,500 gigawatt-hours of thermal energywas produced in boilers in Estonia, 4% less than the previous year.

The number of gas boilers was the biggest - 1,329, followed by light fuel oil boilers - 994, wood boilers737 and of oil shale fuelled boilers 444. In all there were 3,909 boilers in operation throughout Estonia in 2006.

Source: Baltic Business Daily News

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Germany: BOSCH to Cooperate with MTS, RINNAI and ENATECFour leading manufacturers have signed an agreement for development cooperation to achieve breakthrough in combined heat and power generation in the domestic sector.

BOSCH THERMOTECHNIK, ENATEC MICRO-COGEN (Netherlands), MERLONI TERMOSANITARI(Italy) and RINNAI (Japan) plan to develop an electricity-generating heater based on Stirling technology. The four companies have signed a cooperation agreement to make this form of combined heat and power generation (CHP) marketable.

ENATEC MICRO-COGEN, RINNAI and INFINIA have already developed a Stirling module - based onthe INFINIA free piston Stirling design - that has been specifically adapted for use in small CHP-systems. This first-generation module will be produced by RINNAI.

Under the cooperation agreement BOSCH THERMOTECHNIK and MTS plan to install and test over1,000 gas-fired first-generation devices in the context of a Europe-wide field test between 2008 and 2010. This would be the world's largest Stirling technology field test conducted to date.

Based on the results of the field test, the four cooperation partners plan to develop a second generation gas-fired Stirling heater. RINNAI aims to launch a system specifically adapted to the Japanese market, while BOSCH THERMOTECHNIK and MTS will focus on adapting the overall system to the requirements of the European market. The second-generation Stirling heater is expected to be mass produced by RINNAI from 2011. The system would be marketed separately byBOSCH THERMOTECHNIK, MTS and RINNAI.

Stirling heaters generate electric energy and heat exactly where they are needed, so that no energy islost during transport. Thanks to the decentralised and highly efficient parallel generation of electricityand heat, Stirling heaters can achieve a high overall efficiency of over 90%.

Consisting of a Stirling engine, a burner, a fan, a heat cell and a gas valve, the electricity-generating Stirling heating system is very environmentally friendly as the heat released in the electricity generating process is almost entirely used for space and hot water heating.

About BOSCH THERMOTECHNIK

BBT THERMOTECHNIK GmbH represents the Thermotechnology Division of the BOSCH GROUP.Together with its subsidiaries, the company is a leading supplier of resource efficient heating productsand hot water solutions in Europe. In fiscal year 2006, the company generated sales of approx. €2.8billion (64% outside Germany) and employed approx. 12,900 people. BBT THERMOTECHNIK has strong international and regional brands and manufactures a diversified product range in 19 plants innine European and North American countries.

About ENATEC MICRO-COGEN

Founded in 1997, ENATEC MICRO-COGEN B.V. is leading in the development of robust micro CHPapplications based on free piston Stirling engines, system integration and connection to the electricitygrid. ENATEC owns various patents regarding the Stirling engine interface, the electronics for

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electricity grid connection and free piston applications. In this way, ENATEC makes a significant contribution to the commercial introduction and exploitation of this energy saving heating system of the future. The shares of ENATEC are owned by the Dutch energy company ENECO and the Energyresearch Centre of the Netherlands (or ECN - Energieonderzoek Centrum Nederland).

About INFINIA

INFINIA Corporation has successfully developed and marketed innovative Stirling engines and generators since 1985. INFINIA’s proven and reliable free-piston Stirling engine technology is at the core of the residential combined heat and power appliances to be commercialized by RINNAI in Japan and - based on ENATEC licences - by BOSCH THERMOTECHNIK and MTS in Europe. INFINIA’s mission is to improve the quality of life by changing how the world generates and uses energy.

About MERLONI TERMOSANITARI

The MTS Group is a leading international company in the heating and water heating sector. In 2006 the Group recorded sales totalling about €1.2 billion; 6.8 million pieces were manufactured in 23 production units located in 10 countries; it has 7,300 employees and 45 subsidiaries in 25 countries.The Group offers a complete range of products, systems and services mainly under the brands ARISTON, CHAFFOTEAUX & MAURY and ELCO. The Group demonstrates its commitment to energy efficiency issues through significant investments in renewable energies and the developmentof sophisticated energy saving products.

About RINNAI

RINNAI Corporation was established in 1920 and is Japan’s number one manufacturer of residential and commercial gas appliances for the efficient heating of water, air and food. Headquartered in Nagoya, Japan and with worldwide recognition as an industry leader, RINNAI has an extensive network of 23 sales offices and 16 production facilities, and maintains a broad international presenceon all continents.

Source: www.bbt-thermotechnik.de

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Germany: DANFOSS Acquires German DMS Wasser-WärmetechnikDANFOSS has entered into an agreement to take over the sales, marketing and technical support functions from DMS Wasser-Wärmetechnik GmbH, which is based in Hamburg, Germany.

DMS has 20 years’ experience in developing, producing and marketing anti-legionnaire solutions for domestic hot water with integrated thermal disinfection of the circulating water. The company employs 27 people with net sales of €10 million in 2006, mainly generated in the German market, withminor exports to Austria, Italy, and Switzerland. DMS’ current production facilities in Wismar, Germany, and Tatabanja in Hungary, are not covered by the agreement, but will remain suppliers to the business.

"With this agreement, we will strengthen our already very successful business within complete solutions for the domestic hot water market. Our ambition is to be a clear leader within this field and itis therefore vital for us to be at the forefront – where the market is developing, such as in anti-legionnaire solutions,” says Niels B. Christiansen, Danfoss’ Vice CEO.

DMS will be integrated into the DANFOSS District Heating business unit under the name Legiokill ™.The solutions will be mainly sold for use in large residential buildings, institutions, and hospitals. DANFOSS already markets a similar product range under the name of Thermoclean®, and the German-speaking countries in particular are currently showing an increasing interest.

"Health is an increased focus area when it comes to systems for indoor climate control and hot water.The spread of Legionnaire bacteria is a major issue and the bacteria are a comparatively serious threat to health. Since the solutions for fighting the bacteria are rather new, we see a large potential for development in this business area,” says Troels H. Petersen, Senior Vice President in DANFOSSDistrict Heating.

Source: KWD

South America: China Air Conditioner Targets South AmericaMore Chinese air conditioner manufacturers are entering the South American market, particularly, Brazil. During the FEBRAVA 2007, held in Sao Paulo from September 18 to 21, the booths of over 30Chinese companies were under the spotlight. Also called the Refrigeration, Air Conditioning, Ventilation, Heating and Air Treatment Fair, the exhibition is held every two years and in its fifteenth year attracted about 25,000 people and USD 100 million worth of contracts.

ZHUHAI GREE Corporation entered the Brazilian market in 1998 and set up a production base in Manaus, the capital of the State of Amazonas, in 2001. The company has invested more than USD 20 million in the base and currently takes an estimated 20% of the local air conditioner market. It produced many job opportunities for locals and brought advanced technologies there.

Source: SinoCast

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Sweden: NIBE Industrier AB Announced Cost-cutting programmeThe Swedish heating products manufacturer NIBE Industrier AB said on Thursday (20 September) that it will carry out an action programme to reduce stocks and cut costs at its manufacturing unit in Markaryd, Sweden. The programme includes job cuts affecting some 100 employees.

"The background to this is that prior to the 2007 financial year we made preparations to meet an increase in volumes in line with the substantial growth experienced over the past few years. It was our opinion that the market would continue to develop positively for all three of our business areas," said Gerteric Lindquist, CEO of NIBE Industrier.

"However, with just over three months of 2007 to go, we now believe that this year's increase in salesfor the NIBE Group will be less than previously estimated. This is a consequence of a notable weakening in demand in the overall heat pump market in Sweden and slower than anticipated growthin the heat pump market in Germany," Lindquist continued.

"This means that both our current rate of production and the levels of stocks in our warehouses are too high, both for heat pumps and wood-burning stoves. Consequently we must reduce our production rate over the remainder of the year. The fixed cost base must also be reduced to correspond better to the lower rate of growth," Lindquist concluded.

NIBE Industrier said that the aim of the programme is to reduce the fixed cost base at the Markaryd unit by SEK 50 million in 2008 compared to today's levels.

NIBE Industrier, headquartered in Markaryd, Sweden, manufactures heating systems and stoves. The group has 5,100 employees and reported net sales of SEK 4.96 billion in 2006. NIBE Industrier islisted on the OMX Nordic Exchange in Stockholm.

Source: NORDIC BUSINESS REPORT

USA: BOSCH Introduces Solar Thermal Systems to the U.S. MarketBOSCH Thermotechnology division today announced the addition of BOSCH and BUDERUS solar thermal water heating systems and components for both residential and commercial customers in theUSA. Final product certification for these solar thermal water heating systems is nearing completion and product will be offered by BOSCH Thermotechnology Corporation in early 2008.

Source: PR Newswire Europe

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USA: LENNOX to Start Production in MexicoLENNOX International Inc. has announced plans to open a new manufacturing operation in Saltillo, Mexico, under the name LII United Products.

The manufacturing lines responsible for LENNOX brand MERIT series air conditioners and heat pumps, as well as air handlers, will be shifted to Saltillo. The MERIT series is currently manufacturedin Marshalltown, Iowa, while the CB26 air handler is currently manufactured in Grenada, Miss.

The three-year project is expected to break ground in the second half of 2007, with initial production starting in the second quarter of 2008 and ramping up to full production by early 2010.

The Saltillo operation is anticipated to be 300,000 square feet and employ over 500 at full production.The projected capital commitment is approximately $45 million over three years and is expected to lead to cost reductions of over $13 million by 2009, increasing to over $20 million per annum by 2010.

"There is fierce competition for the growing business in the Sunbelt region," said Todd Bluedorn, LII chief executive officer. "Our MERIT series offering is our primary LENNOX brand product line servingthe Sunbelt market, and we must produce quality products at the lowest costs to compete in that market and grow our business. The Saltillo location offers significant manufacturing and logistics costadvantages to help us expand our capacity and flexibility to meet long-term demand and carry out ourSunbelt growth strategies."

The company's current plans are for its remaining LENNOX branded products, including all furnaces, its mid-tier ELITE series cooling products, and its premium line of Dave LENNOX Signature Collectionproducts, to continue to be manufactured at its Marshalltown facility.

"LII began in Marshalltown, and still has deep roots there," Bluedorn said. "The Marshalltown work force is a high-quality work force and will continue to be involved in the production of our more complex product lines.

"The markets in which we compete demand the highest quality products and the most effective distribution, at the lowest possible cost," he continued. "Moving forward, one of our top priorities will be to continually review all of our manufacturing and sourcing needs, finding opportunities to lower our costs and more effectively serve our customers."

Source: Snips

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USA: MASCO Corporation Updates Earnings Guidance For Full-Year 2007

MASCO Corporation has reduced its estimate for 2007 housing starts from approximately 1.4 million to approximately 1.35 million, resulting in the Company's expected fourth quarter sales being down mid-single digits compared to the fourth quarter of 2006.

Headquartered in Taylor, Michigan, Masco Corporation is one of the world's leading manufacturers ofhome improvement and building products as well as a leading provider of services that include the installation of building products.

Source: www.masco.com

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Monthly Special: NEW! Proposal on Renewable Heating Technologies Unveiled

BRG CONSULT is pleased to announce the launch of a new research programme which will study the European markets for new and renewable heating technologies.

The reports are due to be completed by the end of 2007 and cover the following countries:

Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, UK and Ukraine.

The primary aim of the programme is to provide essential up-to-date market information on some of the key alternative technologies - heat pumps, solar thermal systems and solid fuel boilers (including biomass boilers). The reports will be offered either as individual studies oras package options (also incorporating an interactive database service) including internationallycomparable data on:

- market sizes and trends and forecasts, by product sub-category

- market values and average prices

- market sizes by price segment

- main suppliers with market shares

- profiles of leading manufacturers/suppliers, including details of product rangesand distribution policies and practices (including, for example, OEM and private labelsupply arrangements)

- forecasts of key trends relating to all of the above topics.

Due to the timing of the research (Autumn/Winter 2007), the studies will adopt dual base years of 2006 and 2007. In summary terms, the reports will depict:

- historical trends from 1997-2006 and forecasts to 2011

- market share estimates for 2006

- forecast both of sales trends and market shares for 2007 based on year-to-date trends.

If you would like to subscribe to any reports or package options of this programme, an order form is attached to this newsletter. Please print off and return the completed 2 page order form as instructed(fax number +44 1227 766811).

For further information on this research programme or to request a copy of the detailed proposal which is available, please email [email protected] or alternatively call (+44) 1227 766 810.

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- air-to-air heat pumps

- gas heat pumps

Water heater heat pumps

Other heat pumps

- pressurised

- gravity/thermosyphon

type of circulation

Woodchip

Pellets

output category

- < 15 kW

- 15-25 kW

by:

- 25-35 kW

- >35 kW

- water heating only

- combined

- drainback

Storage tanks (pieces)

by:

type of installation

type of system

- individual housing

- collective housing

Other biomass

Solar Thermal Collectors

Vacuum

Unglazed

Solar thermal collectors by area (m2)

Flat plate

Solid Fuel Boilers (including Biomass)

Solid fuel boilers

Fossil fuel & universal

Logwood/bifuel

- vertical bore hole

- other (ground water, lake, stream)

Outside air-to-water

Exhaust air

Heat Pumps

Geothermal

Heat pumps: hydronic space heating

- horizontal

Scope of Research on New and Renewable Heating Technologies

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Country Heat Pumps Solar Thermal Solid Fuel / Biomass

Price per Report

France

UK

Germany

Italy

Spain

Portugal

Netherlands

Belgium

Austria

Switzerland

Ireland

Greece

Denmark

Norway

Sweden

Finland

Poland

Czech Republic

Slovakia

Hungary

Estonia

Latvia

Lithuania

Russia

Ukraine

Romania

Bulgaria

Slovenia

Croatia

Turkey

Package Options: 18 Countries 15 Countries 21 Countries

Per Technology: € 16,200 € 13,500 € 18,900

Full Package of Country Reports + 30 Country Overview Database

* all prices are exclusive of VAT

Please denote required report(s) or package option(s) with a 'X'

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€ 1,400

€ 27,000Full Programme

Delivery:PDF copy only: free Hard Copy - €15 per report

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international market strategy - brg · 2012. 8. 24. · the shares of enatec are owned by the dutch...

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