Vaillant Group founds new subsidiaries in Eastern Europe

• Companies founded in Russia and Ukraine
• Expansion of organisational and sales structure
• Eastern Europe region posts two-digit growth rates

Remscheid, 15 August 2006 

Vaillant Group has founded subsidiaries in Russia and Ukraine. The new companies are to meet the strongly growing demand in the two countries for energy-efficient heating technology products and systems. "Vaillant Group is on an expansion course in Eastern Europe," said Vaillant Group joint Managing Directors Claes Göransson and Dr Michel Brosset. "The region is already amongst the most important markets for us. In 2005 we increased our sales there by more than 16 per cent compared with the previous year. We expect an improvement of similar magnitude in the current financial year." With the new companies, Vaillant Group is on the one hand building up its customer service and sales networks in Russia and Ukraine, and on the other strengthening its pre- and after-sales operations in the two markets.

Vaillant Group continuing on growth course in Eastern Europe

Due to its high growth rates Eastern Europe is becoming ever more important for Vaillant Group. In 2005 the company, as one of the worldwide market and technology leaders in its industry, increased its sales in this region from €198 million (2004) to about €230 million. That is almost 13 per cent of the group's overall sales. The business in Ukraine and Russia, with sales growth of 67 per cent (Ukraine) and 33 per cent (Russia), also contributed to this successful development. Among the other extremely dynamically growing Eastern European markets of the Remscheid-based heating and air-conditioning technology specialist are the Balkan states of Croatia, Serbia, Bosnia-Herzegovina and Slovenia. The company last financial year increased its sales in those countries by 17 per cent, and by 24 per cent in Turkey. Vaillant Group already has wholly-owned subsidiaries in these countries. The demand in Eastern Europe is above all for wall-hung boilers powered by natural gas. With more than 1.5 million appliances sold in 2005, Vaillant Group is the European and world market leader in this product segment.

Headquartered in Remscheid, Germany, Vaillant Group is an internationally successful group that focuses on heating and air-conditioning technology. As one of the world's market and technology leaders, the company develops and produces tailor-made products, systems and services for domestic comfort. In 2005, Vaillant Group, which has been family-owned since its founding in 1874, achieved sales totaling €1.8 billion with about 8,600 employees.

Contact
Dr Jens Wichtermann
Head of Corporate Communications
Vaillant Group
D-42850 Remscheid
Phone: +49 2191 18-2754
Fax: +49 2191 18-2895
Mobile: +49 175 2951810
jens.wichtermann@vaillant.de
www.vaillant-group.com