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06/06/2013

06/06/2013

By Claus Brun

EVP, Sales & Marketing, Europe

LOGSTOR in Germany

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

LOGSTOR identity

LOGSTOR is

• the world’s leading manufacturer of pre‐insulated pipes

for energy efficient transportation of gases and liquids for district

energy - district heating and cooling, solar, marine and industrial

purposes - and oil and gas.

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Sales

Production

Joint venture

Cooperation

• 10 plants in Europe, 2 in Asia

• 15 Sales units

• Distributors in more than 30 countries

• More than 5,000 km pre-insulated pipes every year

• More than 175,000 km LOGSTOR pipe supplied to date

• Headquarters in Denmark

• 1,200 employees

• Annual turnover > 250 MEUR

• The World’s largest producer of high-

quality pre-insulated pipe systems for

temperatures ranging from –200 to

250°C

The LOGSTOR Group

Facts & figures

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

LOGSTOR in Germany

History

• 1970 – 1993 distributor

• 1994 sales subsidiary

• 1995 acquisition of German

Panisovit

• 1999 Merger of Løgstør Rør and

Tarco

• 2005 Merger of Løgstør Rør and

ALSTOM Power Flowsystems.

New name LOGSTOR

• 2006/2007 acquisition of

distributors

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LOGSTOR in Germany

LOGSTOR Deutschland GmbH

• Headquarters in Handewitt near

Flensburg.

• Local functions: Sales, back

office, technical support,

warehouse, service and

administration

• Offices in Oberhausen, Rostock

and Denkendorf

• 58 employees in total (20 in

service)

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Handewitt

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

Market and competition

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• Sale to energy distributors (district heating plants)

• Sale through contractors

• Maket size approx. 160 million Euros

• LOGSTOR market share approx. 25-30%

• Tough price competition

• High service level

• High delivery performance standards

• High quality standards

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Market

Competition

Technical support before,

during and after installation

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

Get a good start in Germany

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• Think carefully about how you enter the market

• Distributors/agents can be difficult to manage

• Direct sales is an option

• Direct local representation may well be the optimum choice

• Start with the most attractive region

• Segments – not all customers have the same attractiveness

• Always check the creditworthiness of the customer

• Clarify technical specifications and standards

• Deliver on time – do not make promises you cannot keep

• Study the conditions of the tender/contract carefully

• Always written agreements

Type of representation

Germany is a big market

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

Organisation and management

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• Small scale start and then build up the organisation

• Relatively low salaries and wages

• Be thorough when you hire

• Be aware of cultural differences

• Employees have faith in authorities

• Ask the employees what they think

• Involve key employees in decisions

• Reward initiative and extraordinary results

• Follow up and check

Organisation

Management

LOGSTOR in Germany – our experience

Agenda

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• Presentation of LOGSTOR

• Organisation and management

CLB

• Market and competition

• Get a good start

• LOGSTOR in Germany

• Conclusion

Conclusion

Germany – the largest economy in Europe

• Analyse the potential and the competitive

situation

• Determine targets and strategy

• Choose the best type of representation

• Build up the business in steps

• Make sure your product and service level

match the needs of the market

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Before you start

LOGSTOR in Germany

Questions

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Thank you for your attention