High investments in the EU
Viessmann buyer Carrier promises “hyper growth”
06/13/2023 11:36 am
The heat pump deal between the German family company Viessmann and the US group Carrier is fueling new concerns about the future of Germany as a business location. A few months after the takeover, carrier boss Gitlin promises “significant investments”.
After the sale of the Hessian heat pump manufacturer Viessmann to the US group Carrier Global, one particular concern arose: What consequences will the deal have for the attractiveness of Germany as a business location? Although Carrier had to take out a loan of eight billion euros in order to buy the Viessmann heating division, Carrier boss David Gitlin now assures in an interview with the “Handelsblatt”: “We will make significant investments in the EU.” For his company, which has been merged with the Viessmann division, he promises “hyper growth” – “growth as far as the eye can see”.
Gitlin assured the newspaper that they want to grow in the high single digits each year. And that regardless of what happens in the global economy. “Once the takeover is complete, Viessmann’s air-conditioning solutions business will be our biggest growth area,” the newspaper quoted the Carrier boss as saying.
However, the US group is not currently planning an additional production company for heat pumps in Europe. The company wants to expand existing locations. “We have the Viessmann production sites in Europe, as well as the Carrier and Toshiba sites. We are excellently positioned,” says Gitlin.
Although Viessmann products play a key role in the energy revolution, the sale did not come as a surprise, according to experts. “The sale of Viessmann is an attempt to avoid ruinous competition in the coming years,” said Martin Schulte, partner at the management consultancy Oliver Wyman, in an interview with ntv.de shortly after the deal was announced.
In his estimation, it is foreseeable that the supply of heat pumps in Europe will more than double in the next 12 to 18 months and prices will therefore fall significantly. According to Schulte, the company’s withdrawal also means: “In German households, the energy transition could be influenced by foreign manufacturers and brands in the next few years.”
At the end of April, Viessmann announced that the air conditioning division would be sold to the US group Carrier Global for twelve billion euros. The air conditioning manufacturer based in Florida is thus also taking over the heat pump business of the Hessian family company. The merger would create “a global champion for intelligent climate and energy solutions,” it said at the time.