Invest KOREA

An Integral Part of the Process

Through consistent growth, Endress+Hauser Korea shows that process engineering is always in the background

If you’ve ever wondered what makes your water okay to drink, or, say, your frozen food safely prepared, wonder no more.

Be it for a refinery or a brewery, Endress+ Hauser provides measuring instruments and automation solutions that make industrial processes safe, efficient and environmentally friendly. It offers process solutions for flow, level, pressure, analysis, temperature and recording and digital communications.

Closer to home, Endress+Hauser Korea Co., Ltd. supplies process automation solutions from Endress+Hauser’s global production centers across a wide range of industries, from food to shipbuilding. And yes, it provides the instruments that make sure your frozen dumplings were prepared in compliance with food processing standards, and that the turbidity of your water is no higher than 1.0 NTU.

With a presence in 42 countries, the Switzerland-based Endress+Hauser began doing business in Korea in the 1970s with a domestic sales representative. Korea’s shipbuilding industry was emerging as a strategic industry at the time and EPCs were growing. Considering the growth engines of Korea’s export-oriented industries and well-structured markets for the food & beverage, power, oil & gas, chemical, water/wastewater treatment and other industries, Endress+Hauser wholly invested in Endress+Hauser Korea in 1997. Today, in addition to its Seoul headquarters, it has branches in Busan, Ulsan, Yeosu and Daesan.

“Korea is one of the very, very strong countries, an industry-based strong country,” said Ie Seob Kim, the CEO of Endress+Hauser Korea. “So [Endress+Hauser] could see a lot of potential in Korea.”

Endress+Hauser Korea succeeded with an initial focus on EPCs and the marine business, boasting strong performance in both markets and growing sales at a CAGR of 25 percent in the last five years. As part of its strategic plan, the company has expanded its scope to the food and pharmaceutical industries, in which the global Endress+Hauser has the number one market share, the power and energy industries and original equipment manufacturers (OEM). The next step is to focus on the solution business and value added service.

In 2011, Endress+Hauser Korea recorded 68 percent growth in their OEM business, 124 percent in food & beverages and 290 percent in the power industry, according to Kim. Main customers include export and project business partners, with major shipbuilding companies and EPCs accounting for 30-35 percent of total business.

So far this year, the company has seen increasing sales in desalination plants, the pharmaceutical industry and EPCs. Since 2005, it has sustained a growth rate of about 30 percent annually and ranks 13th in sales volume among Endress+Hauser’s 43 international sales centers and 57 representative centers.

Kim attributes this consistent growth to effective mid- and long-term strategies and motivated, loyal colleagues. He also points to a corporate philosophy and principles that maintain consistency and fairness.

“We work just like a family,” Kim said of his 86-person staff.

The interior of Endress+Hauser Korea’s new Yeouido headquarters, to which the staff moved in April from their previous Gangseo-gu location, attests to this. In addition to brightly lit corridors and inviting leisure spaces, private discussion rooms named Praise Room and Harmony Room foster team spirit and greater productivity.

As for Endress+Hauser Korea’s future, the short-term plan is to increase sustainability in power & energy, food & beverage and OEM businesses. The mid-term target is more than 100 billion Korean won ($87.6 million) in sales by 2015. For the long-term, Kim emphasizes nurturing highly qualified employees who can help Endress+Hauser Korea’s growth.

“I think this is the core competency of a company or nation,” he said.