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NIBE has reached an agreement to acquire 70% of the outstanding shares in Hemi Heating AB. NIBE has an option to acquire the remaining 30% of Hemi Heating´s outstanding shares at a later time.
Hemi Heating produces heating jackets, heating tents, heating cables, heater fans and several different temperature control options. Hemi Heating have a strong foothold in the science and research segment and have delivered to CERN, MAX4 and a number of universities. As most producers of heating jackets Hemi Heating also produces products for the semiconductor industry.
The company was founded in 1991, has 36 employees, a turnover of about MSEK 20 and a profit level around 15%. Hemi Heating has an 80% ownership in a Chinese company and 16 of the 36 employees are employed in the Chinese company. The local management owns the remaining 20% of the Chinese subsidiary.
Production takes place in Södertälje, Sweden and in Guiyang, China.
Hemi Heating will become part of NIBE Element and will legally be a subsidiary to Backer BHV. The current management/owners Henry and Kerstin Kvael will continue to run the company.
NIBE reports another successful year and shows a significant increase in both sales and profit in the company’s 2017 year-end report
“For NIBE, 2017 was a strong year and the intermediate target of achieving sales of 20 billion by 2020 now feels very close. As soon as we pass the 20 billion sales target, the next milestone will be 40 billion,” says Gerteric Lindquist, CEO of NIBE.
“The year was characterized by good demand, resulting in high production rates, continued high acquisition intensity, especially in North America, and several good signs that our product range based on intelligent, sustainable, fossil-free climate control solutions is highly appreciated.”
“All business areas are growing and taking a bigger share of their markets, thus strengthening their international presence.”
“We have a timely product programme and business philosophy. Our profitability is stable, we are well-prepared for further acquisitions and are geographically widespread, which creates stability. As always, there are many uncertainties in the outside world, but we are still cautiously positive on 2018,” says Lindquist.
The demand for renewable heating solutions for our homes continues to gather pace with an ever increasing number of homeowners exploring the options available to them.
In order to support this growth in demand, and to ensure all areas of the market are catered for, leading manufacturer NIBE has added a new smaller model to it extensive range which will support new build and smaller properties.
“It is important that we opened up the availability of our products to a wider range of homeowners and developers so that properties with a smaller heating loads are able to reap the benefits of renewable heating solutions too,” said Robin Adderley sales director NIBE Energy Systems. “Enabling more people to enjoy the benefits of such systems, both financially and environmentally, is a very positive step towards delivering more choice for homeowners as to how they provide heating and hot water for their homes.”
The F2040- 6kW joins the F2040 family of heat pumps which has been previously offered in 8, 12 and 16kW. The new, smaller heat pump offers the same product features as the established larger units such as compatibility with the VVM320 Indoor Module and SMO range of controllers. The F2040 is also a ideal size for complementing other energy sources for hybrid solutions and can be docked with an existing system such as an oil or gas boiler.
“Hybrid systems are becoming increasingly common applications for heat pumps, with the heat pump being incorporated into existing energy sources with great effect,” said Robin. “ It is an investment that brings considerable economic, energy and environmental benefits and one which we look forward to seeing more installations in the coming months and years.”
Like the larger models in the series, the NIBE F2040-6 heat pumps offer a high heating capacity from the inverter driven compressor and can operate down to -20°C ambient.
Despite delays to policies and changes within Government, for me 2017 demonstrated a growing consensus on climate change, sustainable energy and a commitment to a cleaner future. On the Global stage, the UN Climate Change Conference sent a common message that co-ordinated action is needed to get on track towards the Paris Climate Change Agreement despite Donald Trump’s withdrawal. In the UK, the political parties united on the need to address climate change, improve the efficiency of existing buildings and build more homes.
Renewables beat fossil fuels on a number of fronts throughout 2017. Over the year, a host of different renewable energy records were broken. This included the first full day since the Industrial Revolution without coal power, the most electricity produced from solar power, and the most wind power produced in a day. We have the fourth cleanest power system in Europe and our emissions from the power sector keep falling. To meet our carbon targets, the Committee on Climate Change has said we must also decarbonise our homes. It’s a tough nut to crack with many options still on the table but the uncertainty around how we decarbonise our homes should not be a reason for inaction.
The fifth carbon budget was agreed in June 2016, however the plan to achieve these targets got caught up in politics and as such was delayed, amended and redrafted as Ministers changed and departments merged. Throughout 2017, I saw multiple predictions, speculations and guestimates for its publication date and its content. Towards the end of the year, the Department for Business Energy and Industrial Strategy provided some stability and certainty for the industry by publishing its Clean Growth Strategy. The Strategy, which was discussed in my blog from October, signifies a clear shift in Government’s thinking and a commitment to sustainable growth and addressing climate change across the economy. The highlight for me was a commitment to phase out high carbon fossil fuels for off grid heating in the 2020s. This could signify the Kodak moment for fossil fuel heating.
The Committee on Climate Change recently assessed the Clean Growth Strategy. In the report, Lord Deben says that the Strategy “has changed the tone surrounding consideration of emissions reduction in the UK” and “recognised the essential contribution of the low carbon transition to the economy as a whole”. The Committee welcome its publication but stress that whilst some new policies were announced, detailed policies and measures to meet the targets are not set out and the gaps in meeting the carbon budgets remain. The committee calls for “urgent policy development”.
2018 therefore looks to be a year full of opportunities to develop new policies and shape the future landscape for renewables. For organisations involved in delivering clean, green energy to households and businesses, the Government’s commitments to phase out carbon intensive fossil fuel heating and ensure that homes are future-proofed are ones which stand out in particular. Whilst the commitment to phase out fossil fuels is clear, how the government plans to achieve it is not.
The Committee on Climate Change estimate that by 2030, 2.5 million heat pumps need to be installed in homes but to achieve this a clear focused strategy must be developed. They recommend that the Renewable Heat Incentive is urgently retargeted towards heat pumps to support this increase in installations. There are many options to support the transition to low carbon energy and over 2018, NIBE will continue to work with Government officials and industry professionals to bridge the gap between current policy and what is needed for us to meet out climate change targets.
The last year has proven that renewable energy can and will play a significant role in our future energy mix, however policy and clear commitments are needed to provide the certainty to grow in the market and further decarbonise our homes and buildings. This means that 2018 will be a busy one for the renewable energy sector and for Government as we strive to reduce our impact on the environment and build a more sustainable future. Despite the unprecedented global turbulence and political change, I feel positive moving into 2018. One way or another, the future ahead will be cleaner and greener even if the pathway alters slightly along the way.
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NIBE has reached an agreement to acquire 60% of the outstanding shares in BriskHeat Corporation. NIBE has also agreed to acquire the remaining 40% of BriskHeat´s outstanding shares at a later time. BriskHeat, of Columbus, Ohio, will become part of NIBE Element North America.
BriskHeat is the world´s largest cloth heating jacket manufacturer, providing flexible surface heating elements, controls and accessories for a variety of end markets, mainly for the semiconductor industry, but also for the composite, petrochemical, plastics and consumer product industries.
Founded in 1949, BriskHeat has about 650 employees, annual sales of $39 MUSD and an operating margin above 15%. BriskHeat will continue to run its operations and support its global customer base from its Columbus, Ohio and Vietnam production locations as well as from its sales and warehouse facilities in Taiwan, China and the Netherlands.
“BriskHeat represents another key step in our strategy to become the leading electric heating supplier worldwide; this time in the important and growing Semiconductor Industry, says Gerteric Lindquist, CEO of NIBE.
“Here BriskHeat has an important and growing global customer base with both the manufacturers of semiconductor equipment (OEMs) and the actual manufacturers of semiconductors themselves. BriskHeat´s presence in this and other end markets, combined with NIBE Element´s worldwide manufacturing footprint and engineering activities will provide for significant synergies and growth opportunities going forward”.
“It is also reassuring”, says Gerteric Lindquist, “that BriskHeat´s current management, headed by Mr. Domenic Federico, will continue to run the Company”.
BriskHeat will be consolidated into NIBE Element North America effective January 1, 2018.
The purchase price is not specified because the acquired business will only constitute a small part of the NIBE Group.