Expanded presence in world’s fast-growing markets
The “BRIC” countries refer to the fast-growing economies in Brazil, Russia, India and China. The combined populations of these four countries comprises almost half of the world’s population and their economic growth has, in recent years, exceeded the global average.
COUNTRY
MARKET IN FOCUS
SHARE OF GROUP ORDER INTAKE
PERCENTAGE INCREASE IN ORDER INTAKE 2008
BRAZIL
Presence: Since 1959. 130 employees in sales, service and manufacturing. Network of agents and distributors to ensure that the company’s products and services reach potential customers.
Order intake 2008: SEK 972 (825) million. Brazil has considerable natural resources. Consequently, it is only logical to expect the Process Technology Division to account for most of the order intake. There is a substantial installed base, offering major potential for continuing favorable growth in the aftermarket.
Brazil continues to invest in bioethanol
The ethanol program in Brazil commenced in conjunction with the 1970s oil crisis. Today, Brazil is the world’s second-largest producer of ethanol and the largest exporter. Output has grown to 24 billion liters annually.
Currently, there are about 400 distilleries in Brazil, a figure that is expected to increase to almost 500 in the coming few years. Alfa Laval has worked closely with the country’s ethanol industry since its inception in the 1970s and is currently its largest supplier of heat exchangers and separators.
RUSSIA
Presence: Since 1903. Approximately 300 employees in sales, service and manufacturing. Production is conducted outside Moscow. Alfa Laval has 15 regional sales offices ranging from Murmansk to Vladivostok.
Order intake 2008: SEK 1,008 (1,010) million. The Process Technology Division accounts for the greatest share.
Russian refineries in need of modernization
Russia is the world’s second-largest producer of oil. Between 1997 and 2007, the output of the country’s more than 30 refineries increased 60 percent to 491 million tons.
Its facilities are outdated, however, and in significant need of both modernization and greater efficiency, in order to meet growing demand. Five oil companies, all customers of Alfa Laval, account for approximately 80 percent of all production.
Russia extends across 11 time zones and large portions of the country are in cold weather climates. District heating is therefore an important alternative. Some 70 percent of the population lives in housing connected to district heating – systems that are obsolete and very inefficient. In recent years, Alfa Laval has delivered heat exchangers for upgrading and modernization projects.
INDIA
Presence: Since 1937. Alfa Laval hold a 77-percent interest in a company listed on the Mumbai Exchange. Alfa Laval also has two wholly owned subsidiaries that manufacture and sell heat exchangers, among other products. Approximately 1,200 employees in sales, service and manufacturing in Pune. Alfa Laval has widespread coverage, with 17 sales offices located throughout the country.
Order intake 2008: SEK 1,213 (1,050) million. The Process Technology Division accounts for the greater share.
Indian food industry experiencing high demand
In India, between 60 and 70 percent of the labour force is engaged in agriculture. Every year, large quantities of agricultural products are cultivated, although only 2 percent is processed to create products such as juices, vegetable oils and beer. At the same time, the percentage of the population consuming processed foods is increasing. By 2025, it is estimated that 500 million people in India will be demanding processed foods – just as many as the entire population of the EU. In order to meet this demand, the food processing industry will need to make significant investments in capacity increases. Alfa Laval is currently the largest supplier of technical processing products and solutions to the Indian food processing industry.
CHINA
Presence: Since 1984. Approximately 860 employees in sales, service and manufacturing. Three wholly owned production plants for the manufacture of products in all three technology areas.
Order intake 2008: SEK 3,009 (3,225) million.
China – a growing player in the shipbuilding industry
Several of Alfa Laval’s traditional markets are important in China as well. Energy-related projects, investments in purification facilities and the expansion of infrastructure requiring cooling and heating are all sectors in focus.
The marine market is also very important. In 2000, China accounted for 11 percent of global shipbuilding. By 2010, it is estimated that the market share will have increased to 33 percent, which would make the country the world’s largest shipbuilding nation, measured in number of vessels. Alfa Laval has partnered with the shipbuilding industry since the 1960s and all of the country’s largest shipyards are customers.