SYSTEMAIR AB

SYSTEMAIR AB

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Company Overview
Systemair AB, with registered business establishment located in Skinnskatteberg, Sweden, is a private international company that is principally engaged in the manufacturing and wholesale trading of non-domestic cooling and ventilation equipments. The company was founded under the name Kanalflдkt in 1974.
The company is known as one of the pioneers in manufacturing circular duct fans or centrifugal-in-line tube fans. The company offers full range of various industrial fans that includes ventilation products, such as roof fans, axial fans, circular and rectangular duct fans, explosion proof fans, air handling units, heat recovery units, air terminal devices such as supply and exhaust diffusers and volume control, ventilation accessories and heating products.
The company’s business has active international operations in Portugal and Bulgaria, as well as production plants in Sweden, Denmark, Norway, Germany, Canada, Lithuania, Latvia, Austria, Belgium, China, the Netherlands, Czech Republic, Estonia, Finland, Poland, Russia, Hong Kong, Hungary, India, Ireland, United Arab Emirates, Turkey, Spain and South Africa and Slovenia.
The company aims to produce even more quiet, efficient and reliable fans and at the same time friendly to the environment.
Business Summary
Systemair AB is engaged in the development, production and marketing of ventilation products. The products are marketed under the Systemair, Frico, VEAB and Fantech brands. Systemair represents mainly in-house ventilation products, such as fans, air terminal devices and air handling units; Frico focuses on air curtains, radiant heaters, fan heaters and convectors; VEAB is engaged in the development, manufacturing and marketing of heating products for ventilation installations, fan heaters and air dehumidifiers, and Fantech offers duct fans, various ventilation products and air handling units for residentials on the North American market.
Description and history
Systemair AB is a company engaged in the development, production and marketing of ventilation products. Its brand portfolio includes Systemair, representing mainly in-house ventilation products, such as fans, air terminal devices and air handling units; Frico, focused on air curtains, radiant heaters, fan heaters and convectors; VEAB, engaged in developing, manufacturing and marketing heating products for ventilation installations, fan heaters and dehumidifiers, and Fantech, offering duct fans, various in-house ventilation products and air handling units for the North American market.

The Company is primarily operational on the growth markets, with a focus on the Central and Eastern Europe including Russia. It has two central warehouses and 10 manufacturing plants located in Sweden, Denmark, Norway, Germany, Lithuania, Slovenia, Slovakia, Spain and Canada.

Systemair AB is headquartered in Skinnskatteberg, Sweden.

History
Systemair was founded in 1974 on initiative by Gerald Engstrцm together with two colleagues under the name L.H.G. Kanalflдkt AB. The business was based on a product idea, the circular duct fan, which simplifies the installation of fans in ventilation systems. Production started in small scale in Skinnskatteberg. Right from the start, export sales exceeded 50 percent of total sales, due to successful marketing activities in Norway. The product range was gradually expanded to include rectangular duct fans and export sales to other European markets were initiated.

1970s and 1980s
Systemair’s international expansion process began by the establishment of a sales company in Finland. During the 1980s, the expansion continued with an acquisition in Denmark. Systemair also started exporting to the United States in 1981 through the company RB Kanalflakt in Sarasota, Florida, which was founded by a sales agent. The Norwegian sales company Jolin was acquired towards the end of the 1980s.

1990s
1990-1997
The company became much larger in 1992, when Frico International was acquired. Frico was listed on the Stockholm Stock Exchange at the time. With this acquisition, fan heaters and air curtains were added to the product range. During the latter part of the 1990s, the distribution strategy was changed following a decision to sell through wholly-owned subsidiaries instead of using a combination of in-house and external sales organisations. A representation office was opened in Moscow in 1997. In 1995, Systemair acquired Environment Air in Canada, a producer of heat exchangers and also a customer. The company took over a production unit in Bouctouche, Canada, in 1996, mainly used for the production of duct fans and heat exchangers for residential ventilation for the North American market. In 1997, the company acquired SCIE Systemair, the sales agent in France, and the name later became the name of the whole Group.

1998/1999
During the financial year 1998/1999, Systemair acquired Europair in Sцdertдlje, a developer and seller of air terminal divices and iris dampers. In the same year, Systemair acquired the German company LTI Lьftungstechnik in Windischbuch, Germany, including production facilities and subsidiaries in Poland, England and Singapore. This company became a key production unit and distribution centre in Systemair’s logistics system. The company produces and markets ventilation equipment both for the domestic market and for export markets. Systemair also acquired the French company Sertim, a producer of radiant heaters.

1999/2000
A sales company in Estonia, including a subsidiary in Latvia, was acquired. In the same year, a representation office was opened in Shanghai.

2000s
2000/2001
In 2000/2001, a new distribution centre was built in Skinnskatteberg, considerably improving distribution capabilities. In addition, a significant investment in production machinery was made in Skinnskatteberg, increasing the capacity in punching, nibbling and sheet metal forming. Through the acquisition of Danvent in Denmark, the product offering was broadened to include air handling units for large buildings. Systemair acquired 75 percent of the sales company UAB Alitas in Lithuania and established a wholly-owned sales company in Turkey.

2001/2002
Systemair acquired VEAB Heat Tech in Hдssleholm, a leading producer of duct heaters and fan heaters, as well as the air handling unit producer Auranor Aggregater in Eidsvoll, Norway. Other acquisitions included an Austrian sales company and Phoenix Components in the UK, producing and selling air curtains under the Shearflow brand name. New sales companies were set up in Hong Kong, Hungary and Ireland.

2002/2003
Systemair acquired the sales company Meidijk Ventilatietechniek in the Netherlands. In Skinnskatteberg, Systemair acquired premises comprising approximately 26 000 mІ on 75 acres of land. Systemair’s new development centre in Skinnskatteberg was opened. The centre has an AMCA accredited laboratory for measuring airflow, efficiency, electrical safety and acoustic values.

2003/2004
In 2004, the British company Fans & Spares was acquired. Fans & Spares is a distributor of fans and ventilation products with nine branches in the UK and over 50 years of experience in the industry. The German air curtain producer Gelu and the Swiss distributor Antlia were acquired. In Belgium, a sales company was started and in Norway, a new warehouse was built in Eidsvoll.

2004/2005
The company established new sales companies in South Africa, Romania and the Netherlands. Pyrox, with production facilities in Tysnдs in Norway, was sold. In the spring of 2005, Systemair established a production plant in Ukmergй in Lithuania that took over the production of residential heat recovery units from Systemair’s production unit in Norway.

2005/2006
In November 2005, the company Marvent in Slovenia, specialised in high temperature fans for smoke and heat ventilation, was acquired. In December, the sales company Multiventilacao in Portugal was aquired, specialised in marketing ventilation and cooling products. Systemair also started a sales office in the United Arab Emirates and Spain, in addition to opening a representation office in India. The President of Systemair, Mr. Gerald Engstrцm, was named Entrepreneur of the Year in Sweden by Ernst & Young.

2006/2007
In August 2006, Systemair opened a representation office in China, this time in Beijing. In September, the Austrian sales company Altexa was acquired. During 2007 Systemair acquired the assets in Matthew & Yates in Great Britain, a leading manufacturer of axial fans and the Slovakian company Imos, a manufacturer of air terminal devices.

2007/2008
Systemair was awarded The Major Export Award. The Award was presented by His Majesty, King Carl XVI Gustaf of Sweden.
Each year a Swedish company that in recent years has demonstrated great success in its export is awarded the Major Export Award by the Swedish Trade Council. Systemair was elected best export company in May 2007, as the Company’s export activities has demonstrated steady growth in several markets combined with good profitability.
The jury’s motivation:
“The management for Systemair has persistently and with own resources created an international group based on the entrepreneurial idea of the circular duct fan. With production and development in Skinnskatteberg as basis for operations Systemair has continuously created a group with production in seven countries and own sales companies and exports to a very large number of countries, all this in a highly competitive industry.”In June 2007 Systemair acquired the assets of the Spanish company Koolclima with marketing and manufacturing of air handling units.

On October 12 2007 Systemair was listed on The OMX Nordic Exchange in Stoclholm, Midcap list.

In November we established a sales company in Australia, under the name Matthews&Yates and a software company in India, Systemair Software.
In February 2008 we acquired the Italian ventilation company Climaproduct.

2008/2009
In May we acquired Megcool Industries (products for tunnel and garage ventilation)
in Malaysia.
In May we alcquired the assets in Emerson Ventilation Products (an American producer of fans and ventilation material) from the American company Emerson.
On 27 August Systemair had the first Annual General Meeting as a listed company.

2009/2010
In May we acquired the shares in the ventilation company EnergoPlus in Slovenia, market leader within products for ventilation and air conditioning. the company changed name to Systemair EnergoPlus.

I October we acquired the Dehumidification Division from the Canadian company W.C. Woods. The business is moved to Systemair’s subsidiary Fantech in Canada.

During 2009-10 Systemair opened sales officies in India – in Pune, Bangalore, Kolcata and New Delhi.

In November Systemair acquired the Indian ventilation company Ravistar with approx. 200 employees and head office in Noida outside New Delhi, sales office in Bangalore and production units in Noida and Hyderabad .The acquisition includes the right to use the Ravistar trademark.

Founded under the name Kanalflдkt

Business Line
Manufacturing and wholesale trading of non-domestic cooling and ventilation equipments
Subsidiary
ANIMAC AB
Advisor
ERNST & YOUNG AB
IPO date
10/12/2007
US SIC Code
3585
Company Address
Industrivagen 3

City province or state postal code
739 30, SKINNSKATTEBERG
Phone: +46 0222-44000
Fax: +46 0222-44099
Country address: SWEDEN
Website url: www.systemair.se