Viessmann Inaugurates Production Plant for Industrial Boilers in Russia

Heating manufacturer invests around € 22 million in the Lipetsk special economic area

Lipetsk/Allendorf (Eder), June 14, 2017. Viessmann, one of the internationally leading manufacturers of heating, industrial and refrigeration systems, today inaugurated its new production plant for industrial boilers in the Russian city of Lipetsk, about 460 kilometers south of Moscow. Prof. Dr. Martin Viessmann, president of the company’s board of directors, and a number of high-caliber political and economic representatives participated in the event. Prof. Dr. Viessmann said in front of more than 150 guests: “Construction of this plant is a milestone in Viessmann’s commitment to the Russian heating market. It symbolizes, so to speak, the great importance we attach to the country not only as a business market, but also as a production location.” The entrepreneur noted that Viessmann has been active in the Russian market for almost 20 years and that it sells its products through six sales offices spread across the country.

Construction planning and implementation faster than ambitious schedule

The decision to serve the Russian market with industrial boilers from production there was taken in the Summer of 2015. Construction started already in November, and after receiving the operating permit in January of the current year, the first marketable boilers were produced in March. This means that the ambitious schedule was not only met, but was significantly shortened – unbureaucratic cooperation with the special economic zone Lipetsk under the leadership of director general Ivan Koshelev also contributed to this outcome.

Strong demand and broad mix of customers

The company invested a total of about € 22 million and thereby created up to 140 jobs in Lipetsk. Jobs are established in parallel with ramping up production; more than 50 employees are already working for the company. Principal customers for the industrial boilers are municipalities and government facilities, as well as operators of local and district heating networks. Buyers also include industrial customers, such as in the oil and gas industry, as well as chemical and pharmaceutical manufacturers or food producers. The planned products are existing designs for the hot water boiler Vitomax with an output of 7 MW for now; these designs have already been certified and approved for the Russian market.

Logical step: production on site

Production on site allows Viessmann to meet the great need for heat generators that are reliable and of high technical quality, especially in the municipal and housing industry. Energy-efficient modernization of industrial facilities with modern hot water and steam boilers is another sector. Since the Russian market has been supplied with products from Germany for about two decades – even during the economic crisis in 2008 and the exchange rate crisis of 2014 – using a new production location in Russia to create the conditions for manufacturing products there that are customized for local market requirements is a logical and necessary step.

Creation of efficient and environmentally friendly technolog

By using its own production plant, Viessmann will win new customers and thereby also increase sales in this market. The company will manufacture in Russia and for Russia high-quality, efficient and environmentally friendly technology. Proximity to customers is ensured by production in the special economic zone Lipetsk. This creates more flexibility, speed in supplying customers, as well as better after sales service. By construction a new plant, Viesmann has become a domestic manufacturer.

Lipetsk is the ideal location

The Russian market was carefully analyzed with regard to producing there, several potential locations were evaluated, and the decision was taken for the Lipetsk special economic zone. The location has a convenient geographic position, proximity to customers and steel suppliers, and skilled personnel. The necessary infrastructure exists in the special economic zone.

The Viessmann Group

Viessmann Group is one of the leading international manufacturers of heating, industrial and refrigeration systems. This family enterprise, founded in 1917, employs 12,000 people, and the group’s revenues amount to € 2.25 billion. 54 percent of turnover is generated abroad. As a family enterprise, Viessmann places particular value on doing business responsibly and for the long term; sustainability is already firmly anchored as one of its corporate principles. The complete offer from Viessmann includes individualized solutions with efficient systems and capacities from 1 to 120,000 kilowatts for all areas of application and all fuel sources.

June 2017

Pictorial material