Grundfos on route to success

Grundfos enters a million dollar deal with Cummins Inc. - the world's largest producer of diesel engines

Danish company Grundfos has just signed a contract with US company Cummins Inc., to supply pumps to be installed into diesel cars. Cummins Inc. is the world's largest producer of diesel engines.

Since 2002, Grundfos has been working on a method to make exhaust from diesel engines more environmentally friendly. The end result is a dosage-pump that releases specific amounts of urea to the diesel exhaust resulting in a reduction of nitrogen compound, which is dangerous for people's health and the environment.

The method has been developed in co-operation between several Danish companies. The technique, now ready for the world, is 100 percent Danish.

'We are now reaping the benefits of five years of hard work,' said Jens Lübeck Johansen, manager of the New Business department, who describes the deal as a commercial breakthrough for Grundfos.

According to Grundfos, the business potential is enormous. EU regulations require that the amount of nitrogen compound from diesel exhausts be decreased by 30 percent by 1 October. Starting in 2009, the amount of nitrogen oxides in exhausts must be reduced by a further 49 percent.

The first pumps from Grundfos will be used for diesel truck engines. About one million of these trucks are produced annually. The next step could include producing pumps for private diesel cars. According to Johansen, private car manufacturers are showing interest for the Grundfos method. Annual production of diesel cars is worth some DKK 30 million.

'In five years, we expect to be in a very good position on the market,' said Johansen. He also estimates that the only competitor on the environmentally friendly horizon is German company Bosch.

Daily newspaper Jyllands-Posten estimated the deal between Grundfos and Cummins Inc. to be worth a three-figure, multi-million sum.

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