Endress+Hauser International Holding and Neles Automation announced the intention to form an alliance for joint technology and sales activities. These new activities will employ approximately 100 persons.
The two companies intend to sign a global sales agreement for worldwide project deliveries. A new joint venture company will be established for the sales and services of both companies' field system solutions in Finland. Mr Rainer Korko will be heading this company. Similar joint venture companies may be established also in other markets.
A joint technology unit will be established for the development of new technologies and advanced field system solutions. Their focus will be to use fieldbus and communication technologies to integrate a wide range of products. Lifecycle management systems will provide substantial savings in cost of ownership. Both companies already have a strong position in the process measurement and automation business and expect that the alliance will extend their scope of deliveries significantly.
"This alliance will allow our customers to benefit from the combined strengths of Neles Automation and Endress+Hauser, giving them more powerful integrated field solutions today and in the future. The paradigm shift in technology due to fieldbus makes our alliance a natural fit resulting in improved process performance and lower total lifecycle costs to our customers worldwide," said Klaus Endress, the CEO of Endress+Hauser.
"Our customers are increasingly asking for total field system solutions. This alliance will help us both to better serve our customers and develop technologies for the future. The alliance will also benefit from the synergies with other business areas of the Metso Corporation," said Arto Aaltonen, President of Neles Automation.
The alliance will need the approval of the competition authorities.
The Endress+Hauser group, founded in 1953 by Georg H. Endress and Ludwig Hauser and today wholly-owned by the Endress family, belongs to the top group of suppliers of measurement instruments and automation solutions for process engineering worldwide (chemical and petrochemical industry, pharmaceuticals, foods, water and wastewater, paper, energy, oil and gas) as well as high-quality printed circuit boards. Today, the group comprises 20 production companies in eight countries, 36 wholly-owned sales and service companies in 31 countries as well as seven administrative companies. It is controlled by a holding company located at Reinach, Switzerland. In 1999, Endress+Hauser's net sales were CHF 1080 million (EUR 675 million). The company employs 5711 people at the end of 1999. In industrial measurement of level, flow, pressure, tank level and temperature as well as in industrial liquid analysis the group is either the market leader or is one of the top five suppliers worldwide. Skilled sales and services are dependably provided in every country of the world.
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