Heat pumps have excellent growth prospects internationally. An average annual market growth of 10 per cent is anticipated in the next few years for this particularly energy-efficient and environment-friendly technology. The takeover of IVT Industrier AB from Tranås (Sweden) will secure improved access to the market for electric heat pumps for Bosch Thermotechnik. The acquisition is subject to approval by the relevant anti-trust authorities.

Strong partner

IVT (Industriell Värme Teknik) has been in business for more than 30 years. In 2003 the company with its workforce of some 300 staff achieved sales of 81 million euros. IVT is the market leader for electric heat pumps in Sweden where heat pumps are the system of choice: two out of every three consumers opt for this technology when changing their heating system. But IVT is also one of the leading suppliers across Europe, with the widest range of electric heat pumps of any company.

There are IVT products available to use heat from surface soil, bedrock, groundwater, outside air and exhaust air. This means that solutions tailored to all types of houses and buildings can be supplied. Joachim Berner, chairman of the Management Board of Bosch, outlines why this merger is good for the company: “The acquisition of IVT will enable us to strengthen our position in an important market for the future. IVT is the ideal partner with whom to further expand our leading position in the field of modern heating technology solutions.”

It is true that IVT has a high level of engineering expertise which is recognised within the industry. For example, the IVT Greenline, which uses the available heat in surface soil, bedrock and groundwater, was rated the best heat pump in Northern Europe in the 1990s by the Swedish energy agency Nutek (now known as STEM).

Benefits all round

The integration of IVT into Bosch Thermotechnik offers clear benefits for future business. As part of the largest manufacturer of heating products in Europe IVT will gain access to an established international sales network. This access is vital in a market in which squeezing-out and concentration are the order of the day. Fierce competition means that a certain corporate size is essential for sustained success. However, size is not an end in itself. Rather, it is a question of exploiting the opportunities offered by this size.
One things is certain: in the medium and long terms new technologies for efficient energy use, for example the heat pump, will offer significantly better chances of growth than the increasingly saturated classic sectors. Bosch Thermotechnik intends concentrating more on these new technologies in future.

IVT’s products will reach global markets via Bosch Thermotechnik´s distribution channels. This, in turn, ought to be reflected by a rise in unit sales figures.

The two IVT manufacturing sites in Tranås and Katrineholm are to be retained, and IVT will remain the centre of excellence for heat pumps. The company will continue to be led by Johnny Wärnelöv and his management team. The company’s legal status will also remain unchanged.

IVT staff information day on 10 November 2004

Once the decision on the acquisition of IVT by Bosch Thermotechnik had been made, information meetings for all the staff were held at the two IVT sites in Tranås and Katrineholm. In the morning all the staff received written notification of the merger and an invitation to a staff meeting in the afternoon. Bosch and IVT also issued a press release in the morning. Local politicians were also received and given information on the merger in the Tranås plant.

The staff meetings in Tranås and Katrineholm were very well attended. First of all, the staff found out a little more about the Bosch Group and Bosch Thermotechnik. Bosch Thermotechnik’s in-house image film also went down particularly well. IVT and Bosch Thermotechnik managers then went into detail on the reasons for and benefits of the merger. In the ensuing discussion questions from the workforce were answered in detail by the managers.