Wilo aims to be top pump maker in Asia

Wilo Pumps Ltd., a company jointly invested by Germany's Wilo Group and Korea's LG Group, manufactures both commercial and industrial pumps and exports them to other Asian countries.

"Wilo aims to become a top leader among Asia's pump manufacturers," said Woo Taek-ki, president and chief executive officer of Wilo Pump, in an interview with the Korea Herald. On the basis of Wilo Group's accumulated technology and global network, and LG's product management skills, Wilo plans to expand its market throughout the world, he said. The company recorded 100 billion won in revenue last year and plans to achieve 120 billion in sales and a 12 percent rise in ordinary profit this year. Producing about 1.5 million industrial pumps, 2 million commercial pumps and over 1 million motors for pumps, the company exports about 20 percent of its total output. Wilo produces its products at factories in Gimhae, Korea and Jinan in China, and plans to establish another branch office in Indonesia this July. From its Chinese branch alone, the firm calculates its turnover at $1.5 million with a growth rate of over 50 percent.

Making use of Wilo Group's diverse network around the world, the company also recently closed a 5 million-Euro, three-year contract with Russia, with the first delivery slated for the end of this month. Other countries like Brazil, Bulgaria and Greece are Wilo's next destinations, according to Woo. Previously working at LG Group's pump division, Woo became the president of Wilo in December 2000, when Wilo Group and LG jointly invested in the division to create an independent company. LG currently owns 19.9 percent of the company's stake, Wilo Group 60 percent and Germany's DEG Bank, 20 percent.

Currently occupying the top spot in the domestic pump manufacturing market, Wilo Korea now plans to become one of the top five companies in countries such as Indonesia and Vietnam. The company previously won installation projects at two national-flag buildings, the Sangam World Cup stadium in Seoul and the Asia Europe Meeting (ASEM) tower in southern Seoul, proving its supremacy in the domestic pump market. "Although the market for pumps is small on the whole, the demand is constantly increasing especially with decreasing water supply across the world," Woo said.

The company also sees high replacement demand from original purchasers. Usually lasting five to seven years from initial instalment, over 50 percent of the revenue derived from commercial pumps and 20 percent from industrial pumps come from replacement orders. The company, other than concentrating on producing high-quality pumps, also strives to create eco-friendly products by manufacturing green-energy pumps and recycling many of them.

"We announced our eco-friendly policy in 2000 and received a quality in manufacturing certification (QM) from the International Standardization Organization (ISO) in October last year," Woo said. With the pump market becoming larger and more diverse, Wilo also plans to develop exclusive designs for its pumps, Woo added. In line with the goal of achieving greater global recognition, Woo emphasized the necessity of finding and training internationally competitive workers. The company has opened four language courses in English and Chinese for its employees, he said.

"In order for Korea to become an international state, we have to learn to get used to the non-boundary phenomenon all around the world," Woo said. Woo said that sometimes the high brand power of Wilo backfires in Korea. "We still face some discrimination from conservative circles for manufacturing products under a foreign name," he said. "It is left to us to prove that no matter where the capital comes from, it is Koreans who produce, develop, and pay due taxes," Woo said.

About WILO
Since 1928 WILO has been developing and manufacturing innovative pumps and pumping systems for technical building services, industry and systems construction. The core product line consists mainly of circulation pumps for HVAC applications, as well as pumps and pumping systems for water supply, rainwater utilization, pressure boosting, and dirt and waste water removal.
Sales and customer service are handled worldwide with great expertise by their own employees. WILO products can be purchased through local HVAC and plumbing specialists.

The Wilo Group with its 2,772 employees had over 432 mil. EUR in sales in the year 2000, and is among the largest pump manufacturers in the world.