LDW News 3 - Lloyd Dynamowerke GmbH

Kirloskar acquires majority interest in LDW Double-digit growth in 2007
Management expects substantial growth opportunities for both companies
Kirloskar Electric Company Limited (KEC), one
of India‘s leading manufacturers of electrical
and power equipment, has acquired a majority
interest in LDW, Bremen. Both companies
are expected to benefit significantly from the
acquisition.
KEC and LDW both provide customengineered
design solutions to their
customers, and the product lines complement
each other well. „By combining these products,
we will be able to offer a wider range of
products at very competitive prices“, the
companies announced.
LDW is expected to provide the impetus
for Kirloskar Electric‘s accelerated growth
in Europe, while KEC will open up the
Indian market for LDW products. Also, both
companies can rationalise procurement
2
Drilling ships powered by
LDW machines
Lloyd Dynamowerke have secured
an order to build six motors and the same
number of generators for a drilling ship
being constructed for the offshore oil
company Transocean Inc., Houston. Four
almost identical sets of machines have
already been delivered or are currently
being manufactured for Transocean ships.
The drilling ships are being built by
Daewoo Shipbuilding & Marine Engineering
Co. Ltd. (DSME) in Korea, the world‘s
third-largest shipyard. LDW‘s client in this
project is Siemens Oil & Gas, Norway,
which provides the completed drive
systems for the ships.
The AC asynchronous generators
from LDW feed the on-board electrical
system and provide an output of 8.125
MVA at 11 kV and 720 RPM. The AC
asynchronous motors power the thrusters
and allow the ships to maintain their
positions. They also serve as propulsion
motors, providing an output of 5.5 MW at
2x2 kV and 750 RPM.
LDW was able to secure this order
due to the high quality of its machines,
which is extremely important in the oil and
gas industries. The drilling ships‘ motors
will be equipped with special 6-phase
coils, guaranteeing very high redundancy
and providing the highest-possible protection
against production downtimes.
activities to achieve economies of scale and
therefore reduce costs.
Kirloskar acquired the shares from
German investment company CMP Fonds I
GmbH. CMP had owned the majority for two
years, providing capital to facilitate LDW‘s
growth and paving the way for a successful
business year 2007. KEC now expects to
continue this development. While LDW will be
integrated in its existing business structure,
the German company will be „managed,
operated and reported as a measurable
separate organisation“, KEC announced.
Berthold Groeneveld will keep his shares in
the company.
The number of employees in Bremen –
currently about 250 – is expected to remain
the same or increase.
LDW has increased its turnover and profit
substantially in 2007. Following two years
of stable turnovers at €35 million in 2005
and 2006, this figure rose to €49 million
in the past year. The result of operations
improved by several million euros and returned
to the profit zone. LDW‘s business
situation has stabilised and the foundation
for additional growth has been built.
One important reason for the positive
development is the growing number of
orders from the shipbuilding industry, especially
for the operation of drilling ships.
An increase in productivity and closer ties
to regional suppliers have also reinforced
the upward trend.
LDW management expects a lasting
positive trend and further significant
growth of turnovers in the next years.