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Building work starts on a US plant for Vacon

12 December, 2008

The Finnish drives-maker Vacon is building a new factory and offices in Pennsylvania, USA. The plant, due to be completed by the end of this year, will allow Vacon to expand its product portfolio in the US market and to cut delivery times to North American customers. The site will include product development and test laboratory facilities, and has room for further expansion.

“Vacon aims at continuous and profitable growth, and this is a major step in this direction in North America,” says Dan Isaksson, president of Vacon`s US subsidiary, Vacon Inc.

Vacon, boosted its presence in the US market in January 2008 when it bought the AC drives business of TB Wood’s. The company now has sales operations on every continent, and R&D and production on three continents.

♦ Vacon has downgraded its 2008 revenue growth forecast from 30% to 25%, following a lower-than-expected order intake in November. The company estimates that its operating profit will be just under 12%, slightly down on its previous forecast of 12.6%.

Vacon expects growth in the AC drive market to slow down in 2009. However, it is confident that the need to improve the energy efficiency of electric motor applications, and major investments in renewable energy production, will continue to propel the AC drive market and the company’s long-term goals are unchanged. Vacon aims to achieve annual revenues of €500m by 2012, by when it is aiming for an operating profit margin of 14% and a return on equity of more than 30%.

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