Applications Official Statistics
EU-15 EU-25 2006 compared to
5.6 Selected 11 Member States analysis
A detailed investigation in the GAS was carried out for countries that are of special interest due to their size or particularities of the supply side. The four big Member States, Germany, France Italy and the United Kingdom have been selected. The Netherlands turned out to be the sixth biggest country as measured by the production of GA. Denmark is an important supplier of intermediary goods, such as pumps, actuators etc. and hosts the headquarters of two global players in this market. Additionally it was decided to analyse the situation of the GAS in the new Member States in detail. By their size Poland and the Czech Republic have to be considered. Slovenia was selected because it hosts the biggest manufacturer of domestic appliances of the new Member States and has a long- standing experience in the distribution of its products in Western markets. Slovakia was the last country to be selected. Statistical analysis revealed that the GAS is of outstanding importance for Slovakia. This sector has the highest share of the GDP among all Member States. The country has become a powerhouse for the manufacturing of GA.
5.6.1 Czech Republic
The Czech GA sector has shown rapid growth from 1995 till 2007, at 14.1 percent growth per year in absolute terms, and 10.7 percent growth per year in real terms. Growth rates were strong during the 1995-2001 period (8.9 percent per year in real terms), and even higher during the 2001-2007 period (12.5 percent per year in real terms). The Czech Republic is the eleventh biggest producer in real terms accountable for 1.2 percent of total EU the market production. The GAS-M production share of the GDP increased to 0.18 percent in 2007. The Czech GAS-M employment is 31 thousand.
The demand for GAS-M has increased since 2001. In terms of demand, the Czech Republic is not a major player however. The Czech Republic has a small trade surplus, and is export specialised in GAS.
5.6.2 Denmark
The Danish GA sector has shown slow growth between 1995 and 2007, at 4.3 percent growth per year in absolute terms, and 0.6 percent growth per year in real terms. Total production declined between 1995 and 2001 (-0.1 percent per year in real terms), and saw some growth during the 2001-2007 period (1.4 percent per year in real terms). Denmark is the tenth largest producer in real terms at 1.7 percent of EU market production. The GAS-M production share of the GDP increased to 0.12 percent in 2007. The Danish GAS-M employment is 11 thousand.
Market trends and companies’ behaviour
The demand for GAS-M has increased since 1995. However, in terms of total GA demand, Denmark is only a minor country. The country has a small trade surplus, but is not export specialised in GAS. However, two important companies with global
manufacturing and distribution networks are located in Denmark. They have specialized in standardized parts and components for the assemblage of GA. Quality and state of technology is among the most advanced. The companies’ behaviour is typical for the Danish economy. There are several other manufacturers in this small, high wage country that are global players in specific market segments. High tech, standardized products and efficient production processes enable these companies to stay in an internationally contested market.
Manufacturers of HVAC
Danfoss is a family-owned, globally active company. It runs about 70 factories in 25 countries. The company is well-known for its thermostats, but it manufactures a broad range of fittings for appliances among them GA, such as heat exchangers, ball valves, pressure and flow controllers, safety valves and electronic controls. In 2007, the net turnover was DKK 27,127 million.
With an annual production of 10 million pump units, Grundfos is one of the world’s leading pump manufacturers, covering approximately 50 per cent of the world market for these pumps. In addition to pumps, Grundfos manufactures electric motors for the pumps and has a considerable production of electric motors for separate marketing. Furthermore, Grundfos develops and sells state-of-the-art electronics for pump controls and pump systems. The Grundfos Group is represented by 58 companies in 43 countries. In addition, Grundfos products are marketed by distributors in a large number of countries. Grundfos was established in 1945 by the late Poul Due Jensen. The Poul Due Jensen Foundation was established as a self-governing institution in 1975. Today, the foundation owns about 85 per cent and the founder’s family the remaining 15 per cent of shares in Grundfos Holding AG. The aim of the foundation is to consolidate and expand the economic basis of the Grundfos Group. The capital and the profits of the foundation are to be utilised solely for the aim of the foundation that is the profits are to be re-invested in the Grundfos companies. Grundfos Holding AG is the majority shareholder in all
Grundfos companies. There are approx. 18,000 employees worldwide of which 5,000 work in Denmark. In 2007 the net turnover was DKK 16,814 million.
5.6.3 France
Overview of the French GAS
The French GA sector has shown steady growth from 1995 till 2007, at 8.8 percent growth per year in absolute terms, and 7.6 percent growth per year in real terms. The growth mainly took place during the 1995-2001 period (13.5 percent per year in real terms), and stagnated during the 2001-2007 period. At 14.4 percent of EU market
production, France is the fourth largest producer in the EU. The GAS-M production share of the GDP has increased in France, to 0.08 percent in 2007. France’s GAS-M
employment is 81 thousand. Demand for GA has increased sine 1995. France is now the third biggest EU market and has a trade surplus, but is not particularly specialised in GA
Market trends and companies’ behaviour
Regarding the stock of gas boilers, 3 millions are from 1996-2000, 2.5 millions from 2001-2005, 2 millions from 1991-1995, and half a million from before 1990. Boilers operating with low temperatures were introduced from the year 2000 onwards,
condensation boilers from 2004 onwards and the combination of condensation boiler and solar thermal from 2006 onwards. The market for heat pumps is also developing.
Condensation boilers are currently a common choice for new installations. Three main factors affected the developments of these technologies: efforts from European manufacturers to expand into the French market; tax rebate (credit) schemes from the years 2004/2005; and building regulation, for new buildings (RT 2000, RT 2005 and the forthcoming RT 2012) and for existing buildings (RT 2007). Micro-cogeneration units are expected to be marketed in the near future.
Most gas appliances manufacturers are SMEs. There are only a few large companies in this field. Manufacturers of large diffusion appliances (domestic cookers, leisure appliances, boilers and water-heaters) are mostly trying to cover most of the European market with a large product offer even if some manufacturers might have particular market approaches with specific products. Small manufacturers of specific gas appliances (professional cookers, leisure appliances etc.) may often have a limited market (national or limited to bordering countries) and are generally focused on a limited set of products. Parts and components of gas appliances come from the domestic and EU-15 markets. In addition, sourcing for commercial and domestic water heaters and boilers include the candidate countries (Croatia, Former Yugoslav Republic of Macedonia and Turkey). Sourcing for domestic cooking and heaters as well as leisure appliances also include the new Member States (EU-12). Furthermore, the sourcing area also includes non-EU countries for domestic heaters, leisure appliances (Asia) and professional cooking (Asia, USA). Sourcing strategies are mainly based on labour costs, which have led to a shift of manufacturing to Eastern Europe, as well as lower quality and safety levels, according to the stakeholders.
Manufacturers of HVAC
De Dietrich Thermique, leader on the condensation boiler market, offers a wide range of space heating solutions, based on fossil fuels, solar and heat pumps. The company has a total of 2, 000 employees (in France and abroad) and a turnover of over €400 millions. De Dietrich Thermique has five production sites, of which one is located in The Netherlands (condensation boilers). In 2004, De Dietrich Thermique and Remeha joined forces with the ambition to become one of the top five European heating manufacturers. The group sold over 250, 000 boilers in 2007, of which two thirds were condensation boilers. The group is present in over 50 countries and has either a sale or representation office in Germany, Poland, Spain, Ukraine, China and Russia.
The company Saunier Duval which is over 100 years old and is now a brand of the Vaillant Group, is the number in the French heating and hot water appliances market. Its French production site supplies around 400, 000 wall boilers and 65, 000 water heaters per year. The company started to be active on the international market in the 1970s,
English group