Siemens buying Danfoss' flow division

Erlangen, Germany; Nordborg, Denmark—To continue its expansion into the international process automation field, Siemens Automation and Drives (A&D) and Danfoss A/S agreed May 12 that Siemens will acquire Danfoss' flow division.

05/20/2003


Erlangen, Germany; Nordborg, Denmark— To continue its expansion into the international process automation field, Siemens Automation and Drives (A&D) and Danfoss A/S agreed May 12 that Siemens will acquire Danfoss' flow division. The firms say their agreement is designed to combine the flow activities of Siemens and Danfoss' flow division into a new A&D business unit, Siemens Flow Instruments, which will be located in Nordborg and will be responsible worldwide for development, production and marketing.

Anton Huber, a member of Siemens A&D's group executive management, says this acquisition was needed because the greatest potential growth for A&D lies in process automation. For example, flowmeters make up about 25% of the total demand for process instrumentation equipment. 'With the acquisition of Danfoss' flow division, we consistently continue to expand our process automation sector. Danfoss' flow rate meters perfectly complement our process instrumentation, and close an important product and technology gap in our portfolio. We're 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."

Jorgen Clausen, Danfoss' president and CEO, adds that, "This step is intended to place Danfoss' innovative flow measurement technology in a leading market position, and will allow Danfoss to concentrate on its core businesses in the future."

A leading manufacturer of electronic flow measurement devices for liquids and gases, Danfloss' flow division employs 450 people, and achieved annual sales of approximately ?60 million in 2002. The division's product portfolio includes flow-measuring systems with magnetic-inductive, Coriolis and ultrasound measurement features.

"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. Because customers want to purchase all their field instrumentation from one supplier, Clausen 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 will open up new career prospects for our employees," he adds.

Huber adds that Siemens also bought the flow division because it needs a wide range of field devices 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 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."

Siemens' previous moves to reinforce its process automation activities have included its acquisitions of:

  • U.S.-based gas chromatograph manufacturer Applied Automation in mid-1999;

  • parts of flowmeter technology supplier Turbo-Werk Messetechnik (Cologne, Germany) in late 1999;

  • what is now Canada-based Siemens Milltronics Process Instruments at the beginning of 2000;

  • what is now U.S.-based Siemens Moore Process Automation at the start of 2000;

  • majority shares in Axiva at the end of 2000; and

  • Sweden-based AltOptronic at the beginning of 2001.

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com





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