regional focus – czech republic

0262 1762/05 © 2005 Elsevier Ltd. All rights reserved WORLD PUMPS June 200520

The expansion of theEuropean Union to 25countries has been

instrumental in removingbarriers to trade and created theworld’s largest single marketwith all countries working to thesame rules. Many of theaccession countries are fromEastern Europe and it is here thatmany business opportunities areopening as single marketstandards are enforced.

For pump manufacturers anddistributors, the good news isthat these countries have alreadybegun reforming theireconomies and growth isexpected to continue at a fasterrate than the EU average forseveral years to come.Furthermore, these countries arenow starting to benefit from EUaid allocated for thedevelopment of the

environmental and industrialinfrastructures (Figure 1).

Jan Dolezil, managing director ofAxFlow s.r.o. in the CzechRepublic capital, Prague, isideally placed to talk about theopportunities that are emergingand to provide advice andguidance to would be exportersto former Eastern Bloc countries.As a distributor of pumpsmanufactured by such companiesas Bredel, Warren Rupp, Viking,Johnson Pump UK, Mono andWatson Marlow, AxFlow Grouphas a substantial base, not just inthe Czech Republic but in manyother parts of Eastern Europe.

AxFlow Group established a basein the Czech Republic in 1997 andin 2003 extended its operationsto include pump distribution inSlovenia and Croatia. TheCompany has also had a presencein Poland since 1998 and inHungary since1999, therebygiving it access to markets in allthe current EU accessioncountries and to those that arecurrently planning to apply forEU membership.

Pump manufacturing has been along-established industry in theCzech Republic, with Sigmahistorically having a majorpresence predominantly in theproduction of centrifugal andpiston pumps. In more recenttime this company has facedcompetition for these types ofpumps from manufacturers ofrotary lobe pumps, gear pumpsand progressive cavity pumps(Figure 2). The indigenousmanufacturing base in the CzechRepublic has suffered throughlack of investment in productdevelopment, questionablequality, delivery and lack of fieldsupport and flexibility. However,pumps prices have been low dueto cheap production costs and

for local manufacturers, the salesfocus has been very much on thehome market for light industrialand water applications.

In comparison to other EUcountries, the accession countriesfrom the East have substantialground to make up in terms ofrebuilding and building up theirtechnologies and industries. Inthe experience of AxFlow s.r.o.industries that are requiring newpump technology include food(Figure 3), cosmetics,pharmaceuticals, ceramics andbuilding materials. In addition,there is a growing demand frompublic utilities that have aresponsibility to bring theenvironmental infrastructure upthe same standards as other EUmember countries.

Over the past 15 years manycompanies have invested intechnology in order to surviveand there is a definite trendtowards automated production.Whilst certain countries can nolonger be described as cheap,prices for pumping equipmentare subjected to detailedexamination and comparedagainst the quality of theproduct. Of course, there are stilla great many medium and smallsized privately owned companiesin all areas of industry that willlook for the cheapest pumpsavailable.

The quality of the pump is highon the agenda and companieswant the best value for moneythat they can negotiate.Manufacturers’ names count forlittle; it is the level of quality andback up that is more important.Whilst smaller companies willstipulate a low cost unit, they toocan be persuaded to invest alittle more cash by the guaranteeof ongoing supplier technicalsupport particularly where the

Regional focus – Czech Republic

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Figure 1. Bredelpumps are used atdifferent drinkingwater treatmentplants throughoutthe Czech republicfor dosing limeslurry.

In the first of two articles looking at new European Union countries Jan Dolezil of AxFlows.r.o. Prague discusses the market for pump manufacturers in Eastern Europe. Whileopportunities are abundant gaining access to markets and then securing long term businesstakes planning and investment.

WORLD PUMPS June 2005 www.worldpumps.com 21

pump is a critical part of theirbusiness (Figure 4).

For pump distributors to besuccessful in gaining entry intothe enlarged EU, their employeesneed to be fluent in the languageof the country and be fullyconversant with the customer’sapplication. Because the cost ofinvesting in an imported pumpcan be conceived as being high,the salesman must have a goodtechnical knowledge of how todesign a solution for the problemthat exists. Merely selling from a

catalogue or price list will not besufficient to win business. Asseveral indigenous pumpmanufacturers have found theircost, reactive selling is a recipe fordisaster.

As a considerable proportion ofpumps used by industries in thesecountries are now imported inorder that the users comply withEU legislation, competitionbetween distributors is fierce.Contracts are more aboutmeeting delivery deadlines,quality and support than actual

brand names. As AxFlow s.r.o. hasdemonstrated, having people onthe ground that are prepared togo out and meet with customerson a regular basis, provide aready supply of spare parts andbe available when problems arisewill secure new and repeatbusiness, as well as cement longterm working relationships andproduct confidence.

Because of the levels ofinvestment that are now beingmade in the accession countriesas a result of EU grants and adesire to catch up with the rest ofEurope, there are manyopportunities for pumpmanufacturers around the worldto take advantage of thiseconomic growth. Having asuperior brand is not the simplesolution to accessing thesemarkets. The solution is to have astrong distribution network thatis staffed by qualified engineerscapable of backing up thepromises that they make toensure that plant downtime isminimised and that pumpperformance meets thecustomer’s expectations. ■

CONTACTAxflow Holding ABPO Box 5174SE-102 StockholmSwedenTel: +46-8-453 7700Email: axflow@axflow.comwww.axflow.com

s p e c i a l f o c u s 1 C z e c h R e p u b l i c

Figure 3. Waner G10X pumps operating at 1450 rpm and at pressuresup to 30 bar are used in spraying oil in the production of sausageskins.

Figure 4. Within the pharmaceutical industry Watson-Marlow 604U/R pumps areemployed in the sanitary filtration of high clean water.

Figure 2. Two Mono SE32MS1R5 pumps running at 165rpm and at 600l/h are used forfilling bottles with white and brown Nugeta chocolate.