Production - Group Policy

The main objective of the production companies is - in co-operation with the Group sales and marketing organization - to supply Grundfos customers worldwide with high-quality pumps and pumping systems.

Grundfos’ production is organized in a global network of equal and co-operating production units. Each individual production unit should be big enough to enable rational production, but not so big that it becomes too difficult to maintain a high level of customer focus and good co-operation between management and employees.

Grundfos will decide the geographical location of the production units on the basis of commercial considerations including efficient and prompt customer service, security of supplies, marketing, production costs, local social conditions and the availability of qualified labour.

The Group will use efficient and integrated production systems and thus ensure that Production achieves a high level of delivery service in the form of competitive times of delivery, high flexibility and the fulfilling of agreed times of delivery.

Production shall participate actively with its own employees and competencies in the development and introduction of new products. Production shall furthermore identify new production technologies and further develop existing production technologies. In performing these tasks, Production shall consider energy conservation, consumption of resources and the environmental impact just as important as the setting of targets for the improvement of profitability, logistics and quality.

The manufacture of Grundfos products shall primarily take place within the Group. This means that the Group will manufacture products and components containing technologies which are strategic for Grundfos whereas the manufacture of other components may be outsourced to competitive sub-suppliers. The decision to outsource can only be made in co-operation with Group Production and the internal supplier.

Grundfos will use the most rational production methods with due regard to customer service, environment and profitability.

Efficient quality management will ensure that the quality specifications are met.

Everywhere, Grundfos will endeavour to protect the environment, primarily by using environmentally friendly and energyconserving processes and through preventive environmental management, and secondarily by taking protective measures.

All production units shall have a good working environment based on the involvement of the individual employees. The aim is a high level of employee satisfaction and commitment as well as high total quality in products, services and internal business processes.

Standard production equipment must be purchased from external suppliers whereas Grundfos’ know-how will be used for the development and manufacture of purpose-built machinery and equipment.

Before investing in additional production capacity, Grundfos will make sure that existing production capacity is fully utilized taking reliability and flexibility of supplies as well as stock levels into consideration.

All production buildings and plants must be maintained to a high standard of safety and appearance, and they must - as a minimum - comply with local legislation. Preventive maintenance of the production equipment shall ensure that it is operational at any time.

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