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26 27<br />
market-oriented products have resulted in gratifying market penetration and growing brand<br />
awareness. More intense marketing efforts have also had a positive impact on business in<br />
France and Italy.<br />
Further milestones are the division’s entry into the Hungarian and Romanian mar-<br />
kets, assuring it a foothold in two young, emerging economies. In China the central govern-<br />
ment is currently introducing more stringent financing requirements in an effort to prevent<br />
the construction sector from overheating. This has significantly slowed growth in residential<br />
construction, which has also had an impact on the division’s business there. The division has<br />
further expanded its sales organisation in China to enable it to participate in the future<br />
growth of this market.<br />
Innovations from the<br />
division in in 2005 met<br />
with gratifying and<br />
widespread approval.<br />
Innovation a major source of impetus<br />
Regardless of swings in the economy, AFG Arbonia-Forster-Holding AG is systematically<br />
geared to the needs and requirements of its customers. Innovations introduced by the Heat-<br />
ing Technology and Sanitary Equipment Division in 2005 met with gratifying and widespread<br />
approval. In particular, the patented principle underlying the new Therm X2 flat radiator,<br />
which saves energy while at the same time offering greater comfort, illustrates the division’s<br />
ability to spot market opportunities early on and exploit them capably and expertly.<br />
In surface heating, the division took its full-range strategy a step further by enter-<br />
ing the wall heating and surface cooling segments. And last year the Heating Technology and<br />
Sanitary Equipment Division once again demonstrated its design expertise in impressive fash-<br />
ion: Its new Bagnotherm and Credo II bathroom radiator lines and its Toca and Toca XP<br />
shower stall ranges were not only praised in the highest terms by customers, but also received<br />
the red dot design award 2005 from the renowned Design Zentrum Nordrhein-Westfalen<br />
(Sachsen) in one of the biggest design competitions in the world. In<br />
2005, the division underscored its innovation leadership in shower stalls<br />
with KermiEXTRA, a concept that sets a milestone in terms of individu-<br />
alised shower design by enabling solutions that even the most flexible<br />
standard range cannot achieve (for example spacious walk-in showers).<br />
The trade gave these innovations a very positive reception. The division’s<br />
prestigious stand at the ISH (the international trade fair for bathroom,<br />
building, energy and air-conditioning technology) in Frankfurt was an<br />
impressive reminder of the outstanding market position of the Arbonia and Kermi brands,<br />
and attracted above-average numbers of visitors.<br />
The division also received very gratifying feedback from a survey of tradespeople<br />
on shower screens conducted by trade magazine markt intern. Kermi was given top marks<br />
for product mix, product quality, handling of complaints, supply of replacement parts and<br />
assembly technology/ease of assembly. This put Kermi at the top of the overall rankings once<br />
again.
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