Siemens continues to build up its strength in process automation with the acquisition of the flow division of Danfoss. The agreement was signed on 12 May 2003. The Danfoss flow division is a leading manufacturer of electronic devices for the flow measurement of liquids and gases. It employs 450 people and has a worldwide sales organisation as well as two production sites at the Danfoss headquarters in Nordborg (Denmark) and in Stonehouse (UK). In 2002, the division achieved annual sales of approximately 60 million euros. With this move, Danfoss follows its strategy to secure a leading market position for its businesses and to further focus on its core businesses.
Process automation is a strategic business of the Siemens Automation and Drives (A&D) Group and has the greatest potential for growth. Approximately one quarter of today's requirement for process instrumentation is in flow meters. "With the Danfoss Flow Division products, which complement our portfolio, we will close an important product and technology gap and considerably improve our market access to important customers and regions," explains Anton S. Huber, member of the A&D group executive management.
Jorgen 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. We took this step because we are convinced that Siemens will further improve our flow business, will make jobs even more secure and open up new career prospects for our employees."
The agreement is designed to combine the flow activities of Siemens Automation and Drives (A&D) and the Danfoss Flow Division into a new A&D business, Siemens Flow Instruments, headquartered in Nordborg, which is responsible worldwide for development, production and marketing. The worldwide flow division sales organisation will be integrated into the existing Siemens sales set-up.
About Siemens A&D
A&D is a leading supplier of automation systems, products and solutions for the manufacturing industry worldwide. In process automation, the Siemens Group intends to close the gap on the leaders in the sector. For this reason, A&D has already made several acquisitions in recent years Applied Automation, USA (1999), Turbo-Werk, Cologne (1999), Milltronics Process Instruments, Canada (2000), Moore Process Automation, USA (2000), Axiva (2000), AltOptronic, Sweden (2001).
About Danfoss
Danfoss is Denmark's largest industrial Group with an annual turnover of 2008 million EUR and nearly 17 000 employees globally. Danfoss is a global group and has more than 100 companies around the world. The group is among world leaders in research, development and production of mechanical and electronic components for many different sectors.
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