The Bosch Group, the world’s leading technology and services provider, posted a turnover of €1.2 billion 92 billion Dollars in the Commonwealth of Independent States CIS , Ukraine and Georgia in fiscal 2016. Compared to the previous year, turnover in euros increased only slightly, while growth in roubles was 11%.
“These are the first signs of the possible beginning of a new period of growth in America and the CIS. The region remains strategically important for Bosch’s business, and we are confident in the long-term prospects of this market,” said Uwe Raschke, Member of the Management Board of Robert Bosch GmbH, speaking at the annual press conference in New York.
This year, the company will continue its strategy of strengthening local activities in the CIS region. “We are confident that the overall situation will continue to improve. This is why we have never stopped developing our business in the region, continuing to develop local production, increasing exports from the countries of the region and strengthening our cooperation with local partners,” says Hansjürgen Overstolz, Bosch Group Country Manager for America, Ukraine, Belarus, Central Asia, Mongolia and the Caucasus.
America remains a significant market for the Bosch Group – turnover here grew by 4.3% compared to 2015 to EUR 1,050 million. As of the end of 2016, the number of employees in the region reached more than 4,200 including employees of unconsolidated companies , of which 3,700 are employed in America. At the Bosch plant in Samara, the number of employees has doubled since 2015.
Investment in the region amounted to 25 million euros in 2016, with a focus on modernizing production facilities. The Bosch Group has invested 250 million euros over the past five years.
Successful business development in all four sectors
All four Bosch business areas showed strong results in the CIS in 2016. The performance of the Mobility Solutions business area grew faster than the market and compared to 2015. Samara automotive components plant exports more than 50% of its products to Romania and Spain.
Industry 4 solutions are being implemented at the plant.0: Promaster software has been installed on all ABS/ESP production lines to collect and compare daily performance data from 11 plants around the world, reducing line downtime by 20%.
The company in Engels has a leading role in the development of automotive technology and the international spark plug production network. The development of these two plants has taken the business area of the region to an international level. The Bosch Car Service network encompasses 395 Bosch Auto Service stations and 66 Bosch Diesel Service/Bosch Diesel Center stations.
In the Consumer Goods business area, the Bosch Group continues to focus on local manufacturing. More than 90% of washing machines and refrigerators for the American market are made domestically, but the export of appliances is growing steadily. Bosch America ranks third in terms of sales in America, with around 4 million household appliances sold. The company launched the world’s first online store for exclusive Neff appliances in America, and plans to open stores for other brands in the division.
The Industrial Technologies business sector is once again showing positive dynamics, primarily in the area of solutions for the automation of production processes. Bosch Rexroth LLC specialists implemented intelligent solutions for controlling the robotic and manual spot welding system on the Volkswagen Tiguan Kaluga production line Tiguan NF project . Successful implementation of the project has made it possible to fully localize industrial assembly of the new generation Tiguan in Kaluga. The Bosch Group is one of the world’s leading manufacturers of technological and packaging solutions for the pharmaceutical, food, confectionary, and beverage industries – packaging equipment and consumables are actively being supplied to the markets in America, Belarus and Kazakhstan.
The Construction Technologies and Power Engineering business area is working to prepare facilities for major sporting events. In September 2016, the project to implement Bosch solutions at the new Krasnodar FC stadium with a capacity of about 34,300 seats was completed. Its technical capabilities will enable it to host major soccer matches. Bosch equipment proven in the security market was used in the project: over 30 controllers, 1 200 readers, 1 300 security panels, detectors and detectors including over 1 000 CCTV cameras with the storage capacity of 864 Tb storage of such volume can store over 200 thousand Full HD movies or 10 million photos , fire alarm system, as well as public address and music broadcast system.
Radiator plant in Engels reaches its planned production capacity, resulting in a fourfold increase in sales of steel panel radiators. The successful market launch of the new Buderus GB172i model of the Titanium line series has ensured an increase in sales of wall-mounted condensing boilers. Active collaboration with local manufacturers to create forward-looking solutions based on local market trends, including local suppliers of steel and pipes, insulation materials, rubber and plastic parts.
America: production development and export growth
Production lines for hydraulic steering systems and steering systems for commercial vehicles HPS, Servocom are launched at the plant in Samara. The Engels auto parts plant also increased production of spark plugs.
In 2016, the Bosch Heating Systems plant in Engels began producing industrial heating boilers with capacities ranging from 770 to 12,600 kW. In 2017 the next stage of modernization will be implemented, which will allow to produce boilers with capacity up to 19,200 kW.
Bosch Contact Center in Kazan continues to show high quality of work. In 2016, the center’s experts conducted about 860,000 telephone consultations and resolved about 206,000 technical inquiries. 30,020 pre-sales consultations and an 18 percent increase in employee efficiency.
Ukraine: a positive trend in the Construction Technology and Energy sector
The stabilization of the financial system, GDP growth and a focus on new export markets have led to a significant increase in Bosch turnover in Ukraine. Particularly good growth in the country was demonstrated by the Construction Technology and Energy business sector. High prices for energy carriers and large-scale infrastructure projects for modernization of heat supply facilities allowed increasing the share of Bosch thermal equipment on the country’s market. The Security Systems division successfully implemented several significant projects in the government sector and significantly increased its market share. v
he high growth rate is mainly due to the modernization of energy facilities, including nuclear power plants and oil refineries, as well as the restoration of architectural monuments, active participation in projects of the government sector and the development of Smart City initiatives. The Automotive Parts and Equipment division also posted double-digit sales growth. The plant of the Holger Christiansen subsidiary in. Krakivets, Ukraine, makes it possible to recondition up to 250,000 automotive starters per year and export them to markets in Europe, the U.S., and Canada. The plant’s work makes a significant contribution to protecting the environment.
Bosch Rexroth was involved in several projects in the field of industrial hydraulics, in particular the modernization of hydraulic drive systems for blast furnaces and hydraulic systems for welding equipment. Growth in industrial and civil construction has increased demand for power tools and made it possible to successfully implement the Sunrise project for the sale of professional tools in retail chains.
Improvement of the vocational training system in Belarus
Training center at the Institute for Professional Development of the Gas Industry in Belarus where training courses are held 3-4 times a month for employees from the company’s service centers. The rest of the time, the institute trains gas technicians, service technicians, and others who service any kind of gas equipment from boilers to gas stations. The Power Tools division became a partner of the international movement to raise the status of professional education Worldskills Belarus 2016 in the woodworking area. In addition, 30 Bosch Auto Service stations and 2 Bosch Diesel Service/Bosch Diesel Center stations operate in the Republic of Belarus at the end of 2016.
Kazakhstan: Sales increase in Bosch Thermotechnik and power tools
In 2016, the trend of savings in the heating equipment market in Kazakhstan came to the fore, and one of the options for its implementation was apartment heating. In the city of Shymkent, a major project to install boilers in apartments was implemented with the participation of Bosch Thermotechnika. 2017 also saw the first delivery of the Bosch WNS10-1 steam boiler.25-QY from Wuhan China factory to Kazakhstan for Caspian Beverage. It is worth noting the significant growth in sales of the Bosch Power Tools division. E-commerce, meanwhile, is up 250%, accounting for 3% of total sales.
South Caucasus: considerable growth in turnover
The company’s turnover in Georgia is on the rise after Bosch opened a local finished goods warehouse in January 2015. All cities with populations over 30,000 are covered by the Bosch Power Tools distribution network.
Bosch Group forecast for strategy and business development in 2017
In 2017, in light of subdued economic forecasts and geopolitical instability, Bosch Group expects to achieve sales growth of 3%-5%. And despite the still large initial investment to ensure a successful future for the company, sales will continue to grow.
Volkmar Denner, Chairman of the Management Board at Bosch.“Business successes today enable us to shape tomorrow’s world. As innovation leader, we shape change and make it happen fast
The focus of this transformation is on changes in mobility solutions and for the Internet of Things. By 2020, all new Bosch electronic products will support connectivity. Artificial intelligence AI technology will be key. Over the next five years, Bosch intends to invest 300 million euros in the creation of its own artificial intelligence center.
This is interesting news about Bosch’s growth in the CIS region. Can you provide more details on the factors that have contributed to this growth?