Cardo to Merge the ABS and PUMPEX Brands

26.05.2004

Cardo Pump has decided to change its sales organisation within the pump division. The plan is to concentrate marketing activities on one sales channel and one brand. Sales resources will be moved ...

Cardo to Merge the ABS and PUMPEX Brands

Peter Aru, head of Cardo Pump since January 2004 (photo: Cardo AB)

closer to the customers in a new regionally operating, world-wide organisation. A new sales unit with focus on customers in the pulp and paper industry will be established.

Cardo Pump is one of Europe’s largest manufacturers of pumps, mixers, aerators, compressors and control and monitoring equipment for water and wastewater, industry and building services. Today, products are sold through two parallel organisations under the brands ABS and Pumpex.

“The cost savings and the higher efficiency we get by taking away multiple processes and clearer prioritise selected customer segments, are necessary to improve our competitiveness. By operating through one sales channel to the market, concentrate on one brand and move out sales resources closer to the customer, we create better opportunities for long-term positive growth and profitability”, says Peter Aru, head of the Pump field since January 2004.

ABS and Pumpex merge

In the past years, Cardo Pump has increased the internal efficiency by rationalising a number of areas, resulting in improved profitability. Decisions have also been taken on concentrating the pump manufacture in Sweden.

“We now take another step with the purpose of creating better possibilities for increased organic growth, says Peter Aru. “To improve our competitiveness we concentrate our activities to one sales channel, which means that the sales organisations we have today for ABS and Pumpex will be merged in all countries with parallel organisations. In Sweden, the new common unit for wastewater sales will be based in Stockholm.”

All marketing will be under the brand name ABS.

"The focus on ABS as brand is in line with our direction to offer complete solutions and packages which optimises our customers’ processes", continues Peter Aru.

New regional organisation

In the process of forming an even more customer and market-oriented company, a new geographically oriented organisation will be implemented.

“With a new regional organisation we move sales resources out and responsibility closer to the customer. The new regions will cover both, the subsidiaries and the distributors we currently have in each area, Aru continues.

This means that current organisations for distributor sales, ABS International and Pumpex International, will be split up and responsibility will be moved to the respective geographical region.

Establishing a key account company

As complement to the water and wastewater segment, representing the majority of Cardo Pump’s sales, the group has a long tradition as pump supplier to the pulp and paper industry.

“The pulp and paper business consists mainly of large global units operating in the international market. To become even more efficient and further improve the communication with these customers, we establish a key account company which will focus entirely on this customer group. The new company will have its base in Gothenburg, Sweden.”

Negotiations with the parties involved in the changes that are now initiated have begun. The aim is to have the new strategy implemented by autumn 2004.

About Cardo Pump

Cardo Pump, a business area within the Cardo group, has around 2.200 employees and a turnover 2003 of ca 2.9 billion SEK. The group is present in about 100 countries with around 40 subsidiaries.

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