Grundfos takes over South Korean pump manufacturer

13.03.2002

As from Jan. 1, 2002, the Grundfos pump manufacturing Group took over 60% of the shares in South Korean pump manufacturing company Chung Suk. The sales agreement states that Grundfos will take over the remaining 40% of the shares over a period of two years. This is the first non-European company purchase made by Grundfos so far.

The company will continue operation under the name of Chung Suk and Mr. Sung, former owner of the company, will continue as company President. In addition, he will be member of the new Board, headed by Grundfos Senior Vice President, Søren Sørensen.

With an annual production of 500,000 circulator pumps, the company employs some 80 staff. Annual turnover is approximately USD 10m. Manufactured in co-operation with a number of sub-suppliers, the pumps are primarily sold to local OEM customers, i.e. South Korean boiler manufacturers.

Last year Chung Suk manufactured close to half of the small circulator pumps sold in the South Korean market. With the purchase Grundfos aims to further strengthen the Group's position in the Asian market for small circulators in general, and in the South Korean market in particular.

Grundfos is planning to purchase other companies in Asia, in which region today the pump manufacturing Group generates a turnover of USD 140m out of a total Group turnover of USD 1.2 billion. Today the Grundfos Group includes production factories in Taiwan and China as well as an assembly factory in Japan.

About the Grundfos Group

With an annual production of 10 million pump units, Grundfos is one of the world's leading pump manufacturers. Circulator pumps (UP), submersible pumps (SP), and centrifugal pumps (CR) are the three major product groups. Today, Grundfos is the world's largest manufacturer of circulator pumps, covering approximately 50 per cent of the world market.

In addition to pumps, Grundfos manufactures electric motors for the pumps and has a considerable production of electric motors for separate merchandising. Furthermore, Grundfos develops and sells state-of-the-art electronics for controls for pumps and other systems.

Grundfos was established in 1945 by the late Poul Due Jensen. At first he gave his company the name of "Bjerringbro Pressestøberi og Maskinfabrik" (Bjerringbro Die-Casting and Machine Factory) and not until 1967, after several changes of names, did the company get its present name, GRUNDFOS.

Key figures 2000

- Net Turnover 9,522 mill. DKK (about MEUR 1,28)

- Operating Profit 895 (120)

- Profit before Tax 739 (99)

- Consolidated Profit after Tax 529 (71)

- Employees, Year-end 10,773

Source: Grundfos

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