- Romania | 17 March 2019
Can you provide a comprehensive overview of Emerson and elaborate on Romania’s role within the larger company ecosystem?
Emerson is a global company based in the United States that was established in 1890, specializing in Automation Solutions. As the South East Europe sales executive for our Automation Solutions business, I am responsible for ensuring that industrial manufacturers, including the energy industry, can maximize production, optimize energy efficiency, and operating costs. Europe currently accounts for about 17% of our overall global sales. Emerson has made a series of strategic acquisitions over the past two years that have strengthened the European presence of both business segments. Our Automation Solutions sales office in Bucharest was opened in 1997, followed by a sales office in Zagreb, Croatia, and has since developed steadily to serve 12 countries in South East Europe. Our Bucharest office focuses on customers in Romania, Greece, Bulgaria, and Cyprus and generated a turnover of approximately EUR 37 million in 2018, with half of the value being generated by the Romanian market.
Emerson has the most comprehensive range of products available in the region among automation solutions providers, from sensors used for measurement of various process manufacturing parameters to process control and our Plantweb digital ecosystem. In Romania, we are the only company with all these capabilities under the same roof. Our engineering and manufacturing campus in Cluj, which was established in 2006, has become the company’s largest location in Europe, with 2,500 employees serving the whole of Europe.
Why did Emerson choose Romania as a hub for its Automation Solutions business in South East Europe?
Romania’s attractiveness to foreign investment and its position as an economic engine in South East Europe were among the factors that influenced our decision. We also recognized the vital role that the energy industry plays in our portfolio, and Romania has a domestic energy market with diversified capabilities ranging from exploration to production, refining, power generation, and distribution. At present, the energy sector accounts for approximately 80% of our non-export business in Romania. Additionally, Cluj has excellent universities, particularly for technical skills training, which has made talent available and led us to make long-term investments that have created a campus with 2,500 employees. However, compared to when Emerson first arrived in Romania, access to talent has become much more difficult due to the increasing number of technology companies operating in Romania, leading to a more competitive talent market.
Your company offers a comprehensive portfolio of products and caters to a wide range of customer types. What has been driving demand in recent years?
The refining segment used to account for most of the demand in Romania and South East Europe until two years ago, but the exploration and production areas have become increasingly active, with offshore activity being a significant driver. We have also noticed increased demand in the power generation area and are supplying technology solutions for greenfield power plants in Romania and Greece. Digitalization is the preferred technology choice, and we have noticed a high interest in the energy market, with our Plantweb digital ecosystem offering several benefits. We have also acquired technologies that can detect pipe corrosion and erosion without intrusion and securely send the information wirelessly. The software keeps track of corrosion/erosion levels and automatically sends an alarm to customers when pipes are at risk of leaks or losses, enabling easy intervention with minimal impact on other processes.
What are Emerson’s future plans in the region?
One of our goals is to grow our position in the markets where we are already present. While companies are open to trying out new solutions, we need to first prove the relevance of our technologies. Therefore, we have implemented a Try & Buy model, allowing customers to test our solutions and get a better sense of their usefulness.