Alfa Laval

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Alfa Laval AB
Type Publicly traded Aktiebolag
Traded as OMXALFA
Industry Manufacturing, engineering and service
Founded 1883[1]
Headquarters Lund, Sweden
Key people Lars Renström (President and CEO), Anders Narvinger (Chairman)
Revenue SEK 28.652 billion (2011)[2]
Operating income SEK 4.691 billion (2011)[2]
Profit SEK 3.251 billion (2011)[2]
Total assets SEK 34.503 billion (2011)[2]
Total equity SEK 19.359 billion (2011)[2]
Employees 16,050 (end 2012)
Website www.alfalaval.com
An Alfa Laval centrifuge used in olive oil production in Greece

Alfa Laval AB is a Swedish company, founded in 1883 by Gustaf de Laval and Oscar Lamm.[1] The company, which started in the separation of solutions, now deals in the production of specialized products and solutions for heavy industry. The products are used to heat, cool, separate and transport such products as oil, water, chemicals, beverages, foodstuffs, starch and pharmaceuticals.

Alfa Laval is headquartered in Lund, Sweden and has subsidiary companies in over 35 countries around the world, including South Africa, Denmark, Italy, India, Japan, China, Netherlands, and the United States. In 2012, Alfa Laval had a global workforce of 16,419 employees and revenue of $4,520.96 million.[3] Alfa Laval is a heavy industry company that focuses on the large-scale operations, such as the Marine, Energy, and Food industries. As well as selling equipment, Alfa Laval contracts out to provide individual solutions to the demands of heavy industry, in the form of "Orders".

Advert from 1899

Alfa Laval in the Maritime Industry[edit]

Alfa Laval is known in the Maritime Industry as producer of maritime equipment. Alfa Laval manufactures valves, pumps, heat exchangers, evaporators, distillers, oil separators, filters, and all other hardware vital to the operation of the a ship’s engine room. As of 2011, Alfa Laval consolidated its Marine, Off-shore, and Diesel divisions into one, Marine & Diesel, division in an effort to simplify logistics and administration of its marine wing.[4]

Alfa Laval introduced PureBallast in 2006, which is the world's first commercially sold water treatment system for the Maritime Industry. It also is the first chemical-free solution to ballast water treatment. It works by filtering the water inside the ballasts tanks though an enhanced AOT (Advanced Oxidation Technology) process. The process of PureBallast creates free radicals that destroy the membrane of biological contaminates, such as plankton. Alfa Laval has updated its PureBallast system to Pure Ballast 3.0 that adheres to the new IMO (International Maritime Organization) regulations.[5] South Korea, the largest ship building nation in the world, has placed orders for the new ballast system.[6]

History[edit]

The company was founded as AB Separator and in 1938 produce its first heat exchanger. The current name Alfa Laval was introduced in 1963. Between 1991 and 2000 Alfa Laval was a part of the Tetra Pak Group. In 1991, Alfa Laval Agri, a company producing dairy farming equipment, was split from Alfa Laval. When Alfa Laval was sold, Alfa Laval Agri remained a part of the Tetra Pak group and was renamed DeLaval, after the company's founder.

Alfa Laval now divides its operations between equipment (capital sales) and process technology (contracts with longer duration).

Recently, Alfa Laval has been working towards the consolidation of its manufacturing of boilers. By 2014, Alfa Laval should have all its manufacturing of boilers located in Qingdao, China. The boiler manufacturing plant in Hai Phong, Vietnam will be shut down this year (2013).[7]

As of 2012, Alfa Laval has a total of 32 manufacturing facilities: 15 of which are located in Europe, 9 in Asia, 6 in the United States, and 2 in Latin America.[7]

In 1983, Alfa Laval entered the biotechnology industry by offering separators that can isolate genetic samples.[8]

Midsummer 2008 there was a theft at the facility at Lund where 80 metric ton of titan were stolen using two trailers who drove to Poland.

International operations[edit]

An Alfa Laval cream separator.

Manufacturing at Alfa Laval is carried out in several countries including Sweden, India, China, the UK, and USA.

Canada[edit]

In Canada, Alfa Laval has had a presence for over 100 years, previously as D-Laval, which would provide such services to farmers as assisting them in the storage of their milk and providing cream separators. Alfa Laval is headquartered in Toronto and in 2009 opened a service centre in Edmonton, Alberta. In late 2010, staff in the Canadian operations numbered 74.

United States[edit]

Alfa Laval has been present in the United States of America for more than 120 years - marketing and supplying a broad range of heat exchangers, separators, decanters, pumps, valves and fittings to customers in a wide range of market segments. The brand is known for such products as Tri-Clover, Contherm, Sharples, Merco, Standard Refrigeration, Ketema and Champ. There are 710 employees in the US - with 15 locations including Richmond, VA; Warminster, PA; Kenosha, WI; Sacramento, CA; Melrose Park, IL; Carter Lake, IA and Sarasota, FL - as well as an International distribution center in Indianapolis, IN. There are seven service and repair centers. Heat exchangers, fluid handling equipment and centrifuges are manufactured in the USA.[9]

Alfa Laval’s major competitors[edit]

There are two major competitors to Alfa Laval that offer equipment and solutions for heavy industry: Doosan Heavy Industries & Construction based in South Korea, and Harbin Power Equipment based in China.

As of 2012, Doosan leads the industry with 8,654.85 million dollars in global sales. Although Doosan only has 6,871 employees, (compared to Alfa Laval’s 16,419 employees), it has a strong international presence, especially in the rapidly developing Middle East.[10][11] Doosan competes with Alfa Laval in nearly every sector, - coal boilers, gas turbines, steam generators, heat exchangers, etc. South Korea is the ship building capital of the world and its government protects Doosan with stimulus funds and legislation.[12]

Alfa Laval is the second leader with 4,520.96 million dollars in global sales.[10] Western Europe and the United States continue to be Alfa Laval main customers. The two Asian companies, Doosan and Harbin, present a huge challenge to Alfa Laval and its growth in the Asian market.[13] Alfa Laval’s products tend to be more expensive than its foreign counterparts. However, third party suppliers, such as ShipServ.com, rate Alfa Laval products higher than all others.

Harbin is the largest of the three competitors with 20,106 employees, however, trails behind with 4,121.19 million dollars in global sales.[14] The Chinese economy is slowing, and attempts to expand sales to Africa and South America has not been as successful as the General Manager of Harbin, Wu Weizhang has hoped.[15] In 2011, Harbin went private with the help of the China Development Bank Corporation, allowing the senior leadership team to focus on global competitiveness rather than the liquid asset of corporate shares. Harbin competes with Alfa Laval in the production of industrial rotary motors and other equipment required of the energy industry.[16]

References[edit]

  1. ^ a b Wohlert, Claus (1993). "Bnet article on Alfa Laval AB". International Directory of Company Histories. 
  2. ^ a b c d e "Annual Results 2010". Alfa Laval. Retrieved 8 February 2011. 
  3. ^ Dow Jones, Alfa Laval AB company profile (2013). Retrieved May 6, 2013, from Factiva database.
  4. ^ R. Reidy. (November 2011). Alfa Laval unveils new three division structure. Pump Industry Analyst, Volume 2011, Issue 11, Pages 13-13 Retrieved from http://ac.els-cdn.com/S1359612811704694/1-s2.0-S1359612811704694-main.pdf?_tid=256c1730-ab0b-11e2-814b-00000aab0f26&acdnat=1366607693_055bfc0391a83df0dcebe501f59d77cf
  5. ^ Mercatormedia. (2013, April 10). Alfa laval launches pureballast 3.0. Retrieved from http://www.motorship.com/news101/industry-news/alfa-laval-launches-pureballast-3.0
  6. ^ Anonymous (2010). “South korea shipyards order alfa laval PureBallast”. Professional Services Close - Up, Retrieved from http://search.proquest.com/docview/818442263?accountid=10353
  7. ^ a b IStockAnalyst. (2013, February 07). Alfa laval consolidates manufacturing of boilers in asia. Retrieved from http://www.istockanalyst.com/business/news/6276310/alfa-laval-consolidates-manufacturing-of-boilers-in-asia
  8. ^ Anonymous (1983, Sep 19). Alfa-laval: Updating its knowhow for the biotechnology era. Business Week, , 80-80. Retrieved from http://search.proquest.com/docview/236649473?accountid=10353
  9. ^ "USA webpage". Alfalaval.us. Retrieved 2012-10-15. 
  10. ^ a b Dow Jones, Alfa Laval AB company profile(2013). Retrieved May 6, 2013, from Factiva database
  11. ^ Dow Jones, Doosan Heavy Industries & Construction company profile(2013). Retrieved May 6, 2013, from Factiva database
  12. ^ (April 16, 2013 Tuesday ). “Doosan Heavy Industries & Construction - Q3 2013”. Business Monitor International. South Korea Infrastructure Report, Retrieved from LexisNexis Database.
  13. ^ Alfa Laval. (2012). Fourth Quarter and Full Year 2012 Report and Summery. Retrieved from http://feed.ne.cision.com/wpyfs/00/00/00/00/00/1D/72/0D/wkr0006.pdf
  14. ^ Dow Jones, Harbin Electric company profile(2013). Retrieved May 6, 2013, from Factiva database
  15. ^ Yu, Sophie. (August 21, 2012 Tuesday ). Harbin Electric orders strong despite bleakness; Higher gross profit margin and trading gains help first-half net earnings climb 21.4 per cent. South China Morning Post, Retrieved from LexisNexis database
  16. ^ Bulkeley, Andrew (June 20, 2011 Monday ). Harbin Electric unveils CEO-led buyout. Daily Deal/The Deal, Retrieved from LexisNexis database