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Geographical Decoupling
Geographical decoupling describes the isolation of countries due to political motivations. This makes it harder for companies to pursue cross-border economic activities. As a result, this increases the pressure on supply chains and organisational structures.
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Thinking globally, acting locally
Wilo pursues a systematic “region-for-region approach” in order to counteract the global risks and challenges of geographical decoupling. With a strategy of allowing as much decentralisation as possible and as much centralisation as necessary, the company is increasing its resilience and stability in the face of a crisis.
Major rivals
The most important geostrategic conflict in the world is the rivalry between China and the USA. The world’s major nations are pursuing policies of self-sufficiency and confrontation even while their economies are closely intertwined. A decoupling of these two key markets would trigger a domino effect that would lead to a significant loss in global prosperity.
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Primary production locations
Wilo is continuously increasing its degree of vertical integration, and hence its value added. The company currently has 15 primary production locations around the world, and further sites will be added in the coming years. This is enabling Wilo to secure its local production activities, get closer to its customers and ensure unbroken supply chains. New headquarters are being built in China, and another will follow in the USA in the medium term. In future, the Wilo Group will manage its global business from three headquarters: Germany, China and the USA.
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Combining our strengths
In Cedarburg near Chicago, Wilo has combined the business activities of the three subsidiaries Scot Pump, Weil Pump and Wilo USA at a single production and administrative site. Around 23,000 square metres in size, the “Cedarburg Campus” encompasses the production and administrative facilities as well as a research and development department, a training centre and warehouse and logistics facilities.
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Modern production
Wilo is constructing a new, state-of-the-art plant in Changzhou, China, that is scheduled for completion at the end of 2022. Around 650 people will work in production, administration, research and development at the site with an area of more than 30,000 square metres.
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Reliable, quick, efficient
Wilo has delivered seven IL pumps for the chip manufacturer Infineon’s new wafer plant in Dresden. They are part of the internal cooling water network that is required to produce the millimetre-thin wafers that are the essential basis for chip production. One of the reasons Wilo was awarded this important contract was its ability to supply the pumps in little more than half the usual delivery time.
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Technological Decoupling
A growing number of markets have different standards for products, systems and solutions. This is particularly true of smart and intelligent products that use and exchange data.
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Different markets, different standards
Wilo develops products, systems and solutions that are already compatible with a wide range of standards. Wilo is also decentralising not only its production and administration, but also its research and development departments. This will enable the company to respond even more quickly and flexibly in future so that it can serve its customers’ needs with optimal accuracy and master the challenges resulting from technological decoupling.
Clouds on the horizon
In the area of data-driven digital technologies, communicable standards are required in order for systems to interact across national borders. Isolation as a result of technological decoupling could lead to international companies needing to make additional adjustments
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Adaptable
Wilo adapts its products, solutions and services to reflect a wide range of different requirements. This helps to overcome the new virtual barriers of technological decoupling. Wilo pumps not only meet the respective regional standards, but are also capable of interacting with various cloud systems. One example is the Wilo-Live Assistant. The digital and mobile service is now used in more than 50 countries.
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Smooth thanks to WiloCare
Shanghai Pudong Airport began operations in 1999 and is now one of China’s biggest airports. In addition to the pump systems installed by Wilo, a WiloCare contract was concluded for the airport. The digital service package encompasses the realtime monitoring of different parameters. This helps to further optimise the operational reliability and lifespan of the systems.
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Financial Decoupling
Financial decoupling describes the separation of networks of global financial and capital markets as well as currency and operating payment systems. This can impair overall economic growth.
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A local partner
By making targeted investments, Wilo is laying the groundwork for participating in growth in the different markets around the world. Wilo is extremely well positioned for potential financial decoupling thanks to its extensive network of global and local financial partners.
Proficient, individual, trustworthy
When it comes to financing solutions for local project business, Wilo is increasingly working with experienced local partners who are familiar with the economic, legal and cultural conditions in the respective country in line with its region-for-region approach. These investments are supported by a well-positioned network of international banks and financing partners. The Wilo Group can rely on long-term global financing agreements. Local financing facilities adapted to the individual conditions are also available at the local subsidiaries.
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Investing in India
A new, state-of-the-art production and administrative building is currently being built in Kesurdi, India. The large-scale construction project is being realised with a local financing partner. With the investment, Wilo is strengthening its presence in the emerging billion-dollar market of India.
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Environmental Decoupling
Environmental decoupling describes the situation in which there are no standardised international regulations on sustainable action. To date, green deals have been concluded on a national or regional basis – but global challenges require global solutions.
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Extreme Weather,
clean solutions
Climate protection forms part of Wilo’s business model. Working with the precious resources of water and energy requires sustainable thinking and action. Wilo is systematically pursuing a global sustainability strategy. To achieve the goals it has set itself, Wilo supports local climate protection initiatives and national green deals.
Too dry – too wet
The consequences of climate change vary considerably from region to region, but the causes are the same – and they can only be combated with a global, cross-border approach. Effectively slowing climate change also means preventing environmental decoupling and turning climate protection into a competitive advantage.
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Pilot project
A pilot project to research the potential of hydrogen for sustainable energy supply is being constructed at the Wilopark. “Hydrogen technologies and systems have been defined as a value chain of strategic interest,” says Oliver Hermes. “Wilo services are therefore systemically relevant in this area, too. Our products and systems will make an essential contribution to the generation, distribution and use of climateneutral hydrogen in future.”
Climate-neutral headquarters
The construction of Wilo’s new headquarters in Dortmund is the biggest investment project in the company’s history. Thanks to a comprehensive sustainability concept, production at the Wilopark is already climate-neutral. Reflecting this, Wilo obtained TÜV certification as a “climate-neutral company in Dortmund”. In addition, the “Pioneer Cube” administrative building was awarded LEED Gold certification as well as Gold certification from the German Sustainable Building Council (DGNB).
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An outstanding success
Egypt is undertaking a once-in-a-century project whose scope is comparable to the construction of the Aswan Dam: the Toshka project. The world’s biggest pumping station is diverting millions of cubic meters of water every day in order to irrigate the desert and relieve the overpopulated Nile Valley. Wilo was awarded a contract to deliver 117 axially split case pumps with an output of between 200 and 450 kilowatts as part of construction phases 3 and 4. This major order represents an outstanding success for the Wilo subsidiary in Egypt, which was only founded in 2016.