March 12, 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.