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Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial
Team on 11 June 2004
Vacon is company of the year
Finnish company Vacon has been named recipient of Frost and Sullivan's 2004 Industry/ICE (Instrumentation and Controls and Engineering) Company of the Year Award.
Finnish company Vacon has been named recipient of Frost and Sullivan's 2004 Industry/ICE (Instrumentation and Controls and Engineering) Company of the Year Award The accolade recognises Vacon's unparalleled excellence in the global electric drives market
"Strong and improving financials, an innovative approach to market, a continued emphasis on technology leadership and a sole focus on being the best at inverter technology have all acted to support Vacon's rapid advance over the competition", notes Frost and Sullivan Research Manager Mik Sabiers.
Last year, sales registered a 15.2% rise to reach Eur 112.3 million, an increase in growth of over twice the level of the previous year.
In 2003, Vacon crossed the Eur 100.0 million mark, even as several manufacturers experienced declining sales.
The company also recorded a significant advance in operating profit, which climbed by 19.2% to Eur 11.8 million in 2003.
Apart from improvements in sales and operating profit, Vacon also reported increases in earnings per share, return on investment, R and D spending and augmented its workforce base.
Unlike its leading multinational competitors that offer a broad range of products and services, Vacon's focus on AC drives has demonstrated to customers its primary commitment to drive technology.
Moreover, as an independent supplier, Vacon has been able to concentrate on identifying and rapidly responding to customer demands and providing effective solutions.
The company has consistently sought to expand its regional operations and to strengthen its international presence.
In addition to the production sites in Finland, Vacon has set up 11 sales companies across Europe in the last decade.
With the establishment of a subsidiary (projected to commence operations in mid 2004) in China, Vacon aims to penetrate an exciting, new regional market.
A collaborative venture to produce Vacon NXL low-power frequency convertors is set to support Vacon's presence in the lucrative Chinese drives market.
Vacon has also focused strongly on its approach to market, targeting multiple channels as a key means to build an effective global presence.
For instance, the company has entered into several brand label agreements with leading suppliers in critical regions - a strategy that has allowed Vacon to rapidly entrench itself in areas where it is yet to establish a firm presence.
This strategy has been used to notable effect in North America where Vacon's partnership with brand label customers such as Eaton Electrical has helped it aggressively expand share.
Continued investment in product development has underlined Vacon's position as a technology leader.
"The company's four different product models of its well established NX product family, all utilising the same platform, have been designed to ensure Vacon meets all market demands in terms of covering the main supply voltages, a wide power range as well as the majority of application sectors", says Sabiers.
Bespoke products, tailored to meet specific customer requirements and applications, testify to Vacon's technological leadership.
Nearly two-thirds of Vacon's R and D budget is devoted to designing the software used in its products and customised applications.
At the same time, by adapting software to specific needs without changing the product's components, Vacon has been able to ensure that production is maintained at consistently high levels.
In recognition, therefore, of its unparalleled excellence in the global drives industry, Frost and Sullivan presents the 2004 Industry/ICE Company of the Year Award to Vacon.
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