New York – The turnover of the Bosch Group, the world’s leading technology and service provider, in the Commonwealth of Independent States CIS , Ukraine and Georgia was 1.2 billion euros in fiscal 2015. “Our business performance in the region last year was affected by difficult market conditions and unfavorable changes in currency exchange rates,” said Hansjürgen Overstolz, Bosch Group Representative for America, Ukraine, Belarus, Central Asia, Mongolia and the Caucasus. Turnover in euros decreased by more than 20%. Turnover in local currencies slightly increased. America, with a turnover of 1 billion euros, is still the largest market in the region for Bosch.
Annual press conference 2016 in New York. Bosch increases market share in CIS, Ukraine and Georgia. Focus on increasing localization and optimizing logistics
– Turnover in the region was 1.2 billion euros in 2015.
– Bosch strengthens its positions in the region
– Successful start of production of heating radiators and ABS and ESP automotive systems in America
– Bosch is looking to increase localization at its American facilities
“America and the CIS remains a strategically important region for the Bosch Group. In response to this development, we continue to further localize production, optimize logistics and improve service quality in all of our business areas,
– emphasized Overstolz.
By the end of 2015. The number of employees in the region was more than 4,100. people – about 3.6 thousand. of them work in America. More than 200 jobs were created at the two new Bosch facilities in Samara and Engels last year.
Development of Bosch business areas
Last year in Samara we opened America’s second automotive components plant. The start of production marked the beginning of a new phase in the development of the Mobility Solutions business area in the region. In addition, the automobile service sector is developing, primarily through increased technical training of the personnel and improved service. Industrial technology demonstrated stable development, especially in the field of production automation solutions and in the development of innovative technology. In the Consumer Goods business area, the product portfolio of American factories increased: new models of washing machines, refrigerators and power tools were created. For example, production of cordless screwdrivers and two-kilogram rotary hammers began. Geographical expansion of exports to other regions also contributed to the development. Due to the growth of the distribution network in the region, Bosch increased its share in the market of household appliances and power tools. The Building Technologies and Energy business area was marked by a number of complex projects in the field of safety systems, in particular equipping the Republican Scientific and Practical Center “Cardiology” in Minsk with a conference system and the safety system of science city Innopolis in Tatarstan. Bosch Thermotechnik division in the summer of 2015. opened a second plant in America – a plant in Saratov region, in order to meet the growing demand for Bosch heating equipment: industrial and household boilers, radiators.
Streamlining distribution is a key focus for all of the Bosch Group’s businesses in the region. The product range is also constantly expanding, including the products made in America and designed for the local market and taking into account local specifics. Last year, Bosch implemented a number of steps that will strengthen the company’s position in the long term. This includes staff training and customer service improvement, as well as the use of the Internet in sales and after-sales service.
Investing in the future
Investment in the region reached 12 million euros in 2015. Approximately 10 million euros invested in the Saratov region in the plant of heating radiators. Approximately 32 million euros was invested in construction, equipment purchase and launching production at a new automotive systems plant in the Samara region. Eight Bosch Group companies are already active in the region.
America: towards the availability and reliability of Bosch products
An important step was taken when production of the ABS antilock braking system and ESP electronic stabilization program for American-made cars was launched in the Samara region. In mid-2016. it also plans to begin production of steering systems for the local market.
A high level of maintenance and repair work, based on international standards, is provided by a network of independent service centers Bosch Auto Service, which will celebrate its 95th anniversary in 2016. There are 968 stations nationwide representing the Bosch Service concept: 414 Bosch Auto Service stations, 80 Bosch Diesel Center and Bosch Diesel Service workshops, as well as 474 service partners of the Bosch Modul program. 63% of stations of Bosch Auto Service regional network are located in America.
For Bosch Rexroth LLC, last year was marked by participation in joint projects to create innovative equipment truck crane KS-85713 with carrying capacity of 100 tonnes, unique for America clearance machine M-300 , as well as by the supply of the latest automated control systems to a number of production facilities.
Bosch Security Systems has implemented a series of major projects at sites such as shopping and business centers, hotels and resorts across the country, including the science city Innopolis in Kazan.
In the heating equipment sector, the new Euro Radiators plant in the Saratov region will more than double monthly production by the end of 2016. The company of household wall hung and industrial boilers started production of floor standing boilers that meet the requirements of the local market. The updated line of Bosch Tronic electric water heaters is also gaining market share. In 2015. a project was launched to sell heating equipment of Bosch and Buderus brands via the Internet.
Distribution network and range of Bosch power tools is expanding. In 2015. 430 new dealers have joined the network, bringing the total number of Bosch sales partners to more than 1,600. Direct sales of products are carried out in 2,500. retail outlets. One of the key tasks is marketing support of online sales. In the professional equipment market, the Bosch Group has shifted its focus from the construction industry to heavy industry, as well as large federal projects. In particular, Bosch power tools are used at the Vostochny cosmodrome in the Amur region, at the plants of OAO Severstal and the GAZ Group.
From the BSH Hausger plantä te, one of the largest suppliers of household appliances, saw its two-millionth refrigerator manufactured in the Leningrad region. The range of refrigerators produced at the enterprise was expanded from 100 to 145 models. BSH Hausgerä te aims to further increase market share in the region.
Ukraine: growth of sales of thermotechnics and auto parts
Energy efficiency remains a key topic for Ukraine. In 2015. Demand for Bosch thermotechnics in the country continued to grow. In Odessa, the largest project in housing construction was implemented – equipment with innovative heating equipment more than 100 condensing boilers of the Raduzhny residential complex. Development of the Mobility Solutions business line is primarily related to sales of automotive spare parts, as well as improving the quality of service and expanding the network of authorized repair shops. In 2016. 98 Bosch Auto Service stations and 103 partners of Bosch Modul program operate in the country.
Belarus: participation in major government contracts
Stable development of the Bosch Group’s business was marked by the results of 2015. in Belarus. Implemented a number of major projects of the Security Systems division, including the Republican Center for Emergency Management and Response, the Republican Scientific and Practical Center “Cardiology” and the largest five-star hotel in Minsk “President-Hotel. The network of car repair shops representing Bosch Service concepts is developing: at the end of 2015. There are 85 stations in the country, including 37 Bosch Auto Service stations, and 42 Bosch Service Partners.
Kazakhstan: high demand for heating equipment
In Kazakhstan in 2015. there was a continued high demand for Bosch’s innovative, high-quality heating technology – both in the public and private sectors. The Bosch Group’s largest project was the completion of the construction of a large boiler plant for heating residential buildings in the city of Shymkent. The project was launched in 2014., and by the end of 2015. the first two of the five planned boilers were commissioned. The most powerful boiler house in Kazakhstan and Central Asia, with a total capacity of 190 MW, supplies heat to a district of 30,000 inhabitants. man.
South Caucasus: sales of power tools almost doubled
In Georgia in 2015. Growth in sales of Bosch power tools compared to the previous year was more than 10%, while the construction market in the country as a whole only grew by 9%. Significant progress has been made with the opening of a large Bosch warehouse in Tbilisi. The Bosch tool and tooling distribution network has almost quintupled during the year and now covers 14 cities, including the country’s largest cities. Bosch power tools are available at more than 50 Bosch outlets. The network of car repair shops representing Bosch Service concepts has expanded to 48 stations, including 14 Bosch Auto Service stations and 30 service partners of the Bosch Module program.
Bosch Group forecast for 2016
After a record-breaking success in 2015. The Bosch Group expects to maintain its growth momentum. In 2016. Bosch, a global provider of Internet technology solutions, predicts a 3-5% increase in global sales, taking into account currency fluctuations. At the annual press conference in Germany, Bosch Chairman Volkmar Denner said, “We want to grow not only with innovative products, but also with innovative services. Bosch focuses on three areas in networking and online services: sensors, software and services. The company is increasingly building links between business areas to bring together a variety of platforms in the product area. As a result, Bosch benefits from the technological diversification and breadth of its product range, as well as its expertise in various areas. The newly created Bosch Global Service Solutions division, a new Bosch IoT Cloud service project and launched in early 2016. Bosch Smart Home System solution for remote control of appliances in the smart home – a few examples of this strategy.
What factors have contributed to Bosch’s growth in America, particularly in terms of increasing production localization and market share?