16 February 2022 – Ganz Transformers and Electric Rotating Machines Ltd. forecasts dynamic growth and consolidation of its market position in 2022. The company’s management aims to bring Hungary back to the global forefront of transformer manufacturing, with plans to achieve two and a half times last year’s €20 million turnover in 2022. Two domestic private equity funds will provide Ganz with the stable ownership and financial backing it needs to grow.
Ganz Transformers and Electric Rotating Machines Ltd., manufacturing transformers, high-power electric motors and generators, and providing high-voltage equipment services, has entered a new phase in the implementation of its business strategy.
Jan Prins, managing director of Ganz Transformers and Electric Rotating Machines Ltd. since August 2021 told the period 2020-2030 is called the decade of electricity, which offers extremely favorable conditions for the transformer industry with a potentially significant market boom. The industry expert thinks, the hard work of the past two years to restructure the organization payed-off. Ganz improved its production processes and made manufacturing more efficient, thus providing a solid basis for future growth.
Reorganization successfully completed
Founded in 2020, the Hungarian company successfully restarted production in the same year at the Tapioszele factory, which had been struggling with financing problems under its former Indian owner CG Electric and was returned to Hungarian ownership after more than 15 years. Since then, they have steadily increased production volumes and export activity, saving nearly 300 threatened jobs as one of the region’s largest employers.
Thanks to the success of the reorganization process, the company’s fundamentals have been increasingly strengthened over the last two years. The company is well on the way to regaining its former brand recognition and the trust of its partners and customers: in 2021, the firm achieved a turnover of €20 million, which it would increase two and a half times in 2022. Ganz Transformers and Electric Rotating Machines Ltd. is targeting a sales number of €50 million in turnover this year by developing a new digital product and increasing export volumes.
One of the main strategic objectives of Ganz Transformers and Electric Rotating Machines Ltd. is to boost export activities and strengthen the international recognition of the Ganz brand. In 2021, the Hungarian heavy machinery manufacturer has already achieved considerable success in increasing exports: last year, it exported custom-developed equipment to customers in Denmark, Romania, Spain, Belgium, France, Germany, the UK, Russia and Saudi Arabia.
Following the resumption of production, Ganz supplied products to, among others, Denmark’s third largest district heating supplier, Fjernvarme Fyn. Subsequently, the company delivered transformers worth more than €2 million to the Spanish renewable energy giant ACCIONA Energía.
Energy market’s sustainable turn offers unique business opportunities
The reorganization and restart of production and the sustainable turnaround of the energy market opens up a wealth of opportunities for the 140-year-old Ganz brand. Transformer manufacturing has changed little for decades, but renewable energy generation has brought new challenges to the industry, and Ganz’s environmentally friendly, ester-based transformers and digital monitoring solution could play a significant role in the green turnaround of the energy market.
Decades of steady growth in energy consumption and the use of renewable energy sources have made it inevitable to transform and improve the traditional electricity system. Smart grids, which have emerged over the last decades, offer an economical and sustainable digital solution to coordinate traditional electricity systems, weather-dependent power plants and time-varying consumption. Transformers for transforming the voltage levels of electricity and transferring energy are also essential components of these electricity grids.
Stable financial background
The successful reorganization and the favorable market environment have opened up the possibility for international expansion, primarily in Western Europe and the Middle East. New capital was needed to help bring these developments to market and to increase Ganz’s international export. To ensure this, two domestic private equity funds will enter the ownership circle: Status Property Zrt. gains 49%, while Prime Property Zrt. will acquire a 21% stake alongside Dr. Zsolt Barna, who currently owns 100% of the company. The transaction will ensure the growth of Ganz Transformers and Electric Rotating Machines Ltd., while maintaining 100% Hungarian ownership.
According to Jan Prins, Ganz is one of the biggest names in transformer manufacturing worldwide, renowned not only for its history, but also for the unique expertise of its employees. This year the company wants to build on traditional expertise and modern technology solutions to further strengthen the brand. Jan Prins said, the goal is still to become the most important international transformer supplier, offering customers unique industrial technology solutions. The business results of the past year confirms that GANZ is on the right track, added Jan Prins.
