Displaying items by tag: Vacon

Vacon Plc's Annual General Meeting (AGM) was held in Vaasa today, 27 March 2012. The AGM adopted the proposal by the Board of Directors to pay a dividend of EUR 0.90 per share i.e. appr. MEUR 13.7 in total. The record day for the dividend payment is 30 March 2012. The dividend will be paid on 11 April 2012.

The financial statement of Vacon Plc for the fiscal year 2011 was approved and the members of the Board of Directors as well as the CEO were discharged from liability for said fiscal year 2011.

The number of members of the Board of Directors was confirmed to be seven. Pekka Ahlqvist, Jari Eklund, Jan Inborr, Juha Kytölä, Panu Routila, Mika Vehviläinen and Riitta Viitala were re-elected as members of the Board of Directors.

The AGM resolved to pay the members of the Board of Directors a basic fee of EUR 1,250 a month and an additional fee of maximum EUR 2,500 a month. The additional fee is determined based on the development of the company's turnover and operating profit for the fiscal year 2012. It was resolved that the Chairman of the Board of Directors shall be paid twice the basic fee and twice the additional fee paid to the members of the Board of Directors. In addition, the compensation for attendance at the meetings of the Board of Directors' permanent committees was result to be EUR 500 per meeting. The travel expenses of the members of the Board of Directors are compensated in accordance with the company's Travel Policy.

The number of auditors was confirmed to be one. PricewaterhouseCoopers Oy was elected as the company's auditor with Markku Katajisto as the principal auditor.

The AGM adopted the proposals of the Board of Directors to authorize the Board of Directors to resolve to repurchase shares in the company and to decide on share issuance. The proposals of the Board of Directors regarding said authorizations were reported in the stock exchange release of 17 February 2012.

All decisions adopted at the AGM were made unanimously unless otherwise stated in the minutes of the meeting.

After the AGM, the Board of Directors at its organization meeting elected Jan Inborr as Chairman and Mika Vehviläinen as Vice Chairman of the Board. Jan Inborr, Mika Vehviläinen and Riitta Viitala were elected as members of the Board's Remuneration and Nomination Committee. Jan Inborr was appointed as Chairman of said committee. At the same meeting, the Board of Directors decided to establish an Audit Committee. The members of the Audit Committee are Panu Routila (Chairman), Jari Eklund and Juha Kytölä.

The global AC drive manufacturer Vacon announces the renewal of its entire Vacon NXP premium product range. The update involves improvements to both the air-cooled and liquid-cooled units in the complete power range from 0.55 kW to 5,300 kW. The Vacon NXP will maintain its strong position in Vacon's product portfolio and in the highly competitive AC drives market.

"The Vacon NXP is a high-performance product range, and with this update we have further improved its performance, robustness and reliability," reports Heikki Hiltunen, Executive Vice President. "As a dedicated AC drives company, we are committed to pioneering trends in product design and provide innovative solutions for demanding industry applications and high power ranges." 

"At the end of 2011, we introduced a new compact AC drive product family for OEM customers. With this new Vacon NXP update we are refreshing one of our most popular AC drives range in the premium range. We have done our homework and are focused on providing customers with the drive solutions they are asking for," Hiltunen continues.

One of the most significant improvements concerns the control circuit boards, which have been significantly redesigned and conformally coated. Certain critical components have been replaced in order to increase their temperature sustainability. However, the range of functionality and compatibility of the circuit boards remain unchanged.

Varnished cards and option boards, which are provided as standard in the power modules above 72 A, improve protection against dust and moisture. Performance and durability have also been enhanced via improved cooling channels for optimal cooling and experience-based optimization of protection limits. In the air-cooled Vacon NXP, new fans improve the reliability of the drive, thus ensuring a longer lifetime. Thanks to the new cooling concept, fan efficiency has been improved by more than 50%.

In the liquid-cooled high-power modules, new options, such as an integrated brake chopper, have been implemented to minimize cabinet size and cost.

"The processor in the control card has also been changed, boosting calculation power by 15%. This benefits especially OEM customers who make their own software for applications," says Kurt Hofman, Product Marketing Director, Liquid Cooled Drives.

The Enhanced Vacon NXP range has been tested extensively, and HALT* (Highly Accelerated Life Test) tests have been carried out to assure excellent product performance.

Global AC drives manufacturer Vacon expands its factory operations in India. A new factory has recently been taken into use in Bangalore. The factory occupies a total area of 2,500 square meters.

Vacon's subsidiary in India was established in 2006, and is headquartered in Chennai with local sales offices around the country. The new factory focuses on designing and manufacturing Vacon's AC drive solutions for customers. The plant also has an after-sales service center.

"Vacon has been growing fast in India. This new factory will improve our competitive edge in the local markets as the AC drive solutions provided by our factory are in demand among our customers. In India, there is a considerable level of awareness of the benefits the AC drives can bring," says Shailendra Salvi, the Managing Director for Vacon's subsidiary in India.

"The new factory will considerably improve our possibilities to meet our customers' needs. The Indian AC drives market is huge, but at the same time, the competition is fierce. Vacon's personnel in India have done a great job, and the new factory opens new opportunities," concludes Mr Salvi.

The global AC drives manufacturer Vacon has appointed Tomas Duba the Managing Director for the company's sales offices in the Czech Republic and Slovakia.

"During the past few years, Vacon has expanded its operations in the Czech Republic and Slovakia, and there is a lot of potential for growth. Tomas Duba has a solid background in the AC drives business as well as in the sales and management positions. He will play an important role as we continue to grow in the region," says Matti Vekkeli, Regional General Manager for Vacon's operations in EMEA.

Tomas Duba will be responsible for operations throughout the Czech Republic and Slovakia which include sales, marketing and after-market services. Vacon's Czech and Slovak operations are headquartered in Prague, and Vacon has several systems integrators, OEM clients and distributors in the two countries.

Most recently, Mr Duba held the position of the Managing Director in the Czech and Slovak subsidiary of FlexLink Systems, a worldwide leading manufacturer of flexible chain conveyors.

The former Managing Director of Vacon's subsidiary in the Czech Republic stepped aside from his position on 27 February 2012.

Vacon Plc has completed the statutory personnel negotiations on 15 February 2012 concerning the company's white-collar personnel in Finland.

The invitation to the personnel negotiations was given to Vacon's white-collar employee representatives on 12 December 2011, and the negotiations started on 19 December 2011.

The need for personnel reduction in Finland operations was estimated at 60 persons at most. Possible temporary lay-offs and part-time work were estimated to affect not more than approximately 400 white-collar employees of the company. As a result of the negotiations, the need for personnel reduction was specified at 19 persons. 13 fixed-term employment contracts will not be extended. In addition to the personnel reductions, the number of Vacon's white-collar personnel in Finland operations will be reduced by 13 persons altogether with voluntary arrangements.

In the negotiations an agreement was also reached on an option for temporary lay-offs for a total of 20 working days which can be realized during April-December of 2012 as well as on an option for temporary lay-offs for a maximum of 10 working days during the first quarter of 2013.

Furthermore, savings equal to over 10 man-years have been identified in Vacon's global operations, and these savings will be realized during the first half of 2012.

In the background of the need for the alignment are economic and production related reasons as well as the re-organization of Vacon's operations. The aforementioned measures aim to ensure the company's competitiveness as well as developing and launching new products to the market.

In Finland, Vacon employs altogether some 750 people in Vaasa, Tampere and Vantaa.

The global AC drives manufacturer Vacon Plc and European Batteries Oy, a Finland-based lithium-ion-iron-phosphate (LFP) battery systems manufacturer, have agreed on cooperation in the field of technology that combines the use of battery systems and AC drives in the same electrical system.

The two companies share the view that the field of energy production will be more and more fragmented in the future. In consequence, due to varied grid quality requirements, the use of battery systems will become an increasingly attractive option in energy production facilities. In addition, traditional power transmission systems will be supported, or even replaced, by fully electrical systems which allow energy to be stored e.g. in expandable battery systems.

The wide competence and experience of both companies, exchange of technical knowhow, common understanding of the challenges and boundaries of the technology create a solid foundation for a cooperation that aims at applying the two different technologies to conserving electrical energy and converting it into use in practical applications. This cooperation will bring immediate benefits to the mutual customers of Vacon and European Batteries.

As a result of the cooperation between Vacon Plc and CEI (China National Electric Apparatus Institute Co), CEI has received the Golden Sun Certificate approved by the China National Quality Certification Center (CQC) for their 200 kW solar inverter on 15 December 2011. This major milestone in the cooperation between CEI and Vacon will allow CEI to participate in the bidding for the Golden Sun solar program run by the Chinese government.

The Chinese government aims to install 15 gigawatts of new solar capacity by 2015. To be included in the list of potential suppliers for the Golden Sun program, solar inverter manufacturers are required to have Golden Sun certification for their products.

The cooperation between Vacon and CEI combines Vacon's inverter technology know-how with CEI's system-level product packaging capabilities and power generation know-how. This results in a very high-quality solar photovoltaic (PV) inverter product that meets the requirements of the Chinese market.

"I am convinced that this cooperation will provide both companies with great opportunities in the fast-growing Chinese solar PV market. The Chinese government's commitment to increasing the production of energy from renewable sources is a good example in the fight against climate change," says Olli Tevä, Marketing Director, Renewable Energy at Vacon Plc.

China National Electric Apparatus Institute Co (CEI) was established in 1958, under the management of China National Machinery Industry Corporation (SINOMACH).

Vacon Plc is reshaping its Executive Management Team and re-allocating responsibilities. The main objectives of the changes are to streamline the Group's management model, clarify the reporting hierarchy within the global organization, and raise efficiency.

In the new model for allocating responsibility, Vacon's operations are divided into three main areas, namely Market Operations, Product Operations and Support Functions. Market Operations include sales, marketing, product marketing and customer and maintenance services. Product Operations comprise research, product development and product management, as well as production, materials sourcing, logistics and product support. Support Functions include human resources, finance and legal, ICT, corporate communications and investor relations. Vacon will reorganize its global operations during the first quarter of 2012 to bring them in line with the new allocation of responsibilities within the Executive Management Team.

As from 5 January 2012, the members of the Vacon Executive Management Team are: President and CEO Vesa Laisi; Heikki Hiltunen, Executive Vice President, Market Operations; Jukka Kasi, Executive Vice President, Product Operations; Tuula Hautamäki, Senior Vice President, Human Resources;  and Eriikka Söderström, Chief Financial Officer. President and CEO Vesa Laisi is chairman of the Executive Management Team and the secretary is Sebastian Linko, Director, Corporate Communications and Investor Relations. Heikki Hiltunen is deputy to the president and CEO.

- "It is time for Vacon to take the next step in developing its global presence. We are renewing our organization to bring it in line with the company's strategy. Our goal is to build an organization that is clear and coherent and with which we can achieve our targets for 2014", says President and CEO Vesa Laisi.

Jari Koskinen (Vice President, Global Production Operations) and Timo Kasi (Vice President, R&D), who were previously members of the Executive Management Team, continue in the company's service, working in Product Operations, headed up by Jukka Kasi, and remain in charge of their own areas of responsibility during the transition phase.Jari Koskinen will be on study leave to write his doctoral thesis as from 1 March 2012.

Vacon has been sentenced to pay compensation in the court case in China. Vacon was accused of importing components with the wrong customs tariff classification.

The court ordered Vacon to pay compensation totalling EUR 5.5 million which consists of unpaid customs duties as well as the penalty. In the opinion of the court, the correct customs tariff for the components in question was 8 per cent, and not 10 per cent as demanded by the prosecutor.

The compensation will have a net impact of some EUR 2 million on Vacon's financial result in 2011, and Vacon made a provision for this on 12 December 2011. Vacon made a provision of EUR 3.2 million already in the 2010 financial statements in respect of the court case in China. The compensation does not affect Vacon's guidelines for its financial result in 2011 updated on December 12.

"It has always been and will always be Vacon's explicit policy in its global operations to comply with both local and international legislation, rules and regulations. We are pleased that the court ruled in Vacon's favour concerning the customs tariff on the components, that it should be 8 per cent and not the 10 per cent demanded by the prosecutor. We are also happy that the matter has been brought to a conclusion, and we do not intend to appeal against the ruling," says Vacon CEO Vesa Laisi.

The court also imposed prison sentences of 10 and 12 years on two former employees of Vacon's company in China. These private individuals may appeal against their sentences.

Vacon first published a statement about the investigation by the Chinese customs authorities on 19 March 2010. The Chinese prosecuting authority decided to raise charges on 7 January 2011.

Vacon is starting negotiations with its white-collar personnel working in the Vacon Group's parent company Vacon Plc in Finland as part of a large global cost-savings plan in the Group. During the years 2012-2013, the Group aims to achieve annual savings equal to 60 man-years in its parent company and 10 man-years in the Vacon subsidiaries. The invitation to the negotiations in the parent company was given to Vacon's white-collar employee representatives yesterday, 12 December 2011.

The negotiations affect approximately 420 white-collar employees in the Vacon Group's parent company in Finland. The negotiations will deal with and aim to agree on measures which can be used to adjust business operations to the market situation. The goal is to find the cost-saving measures which ensure the company's competitiveness as well as developing and launching new products to the market. In addition to improving efficiency in operations, among the measures to be initially considered are reductions in definite-duration office personnel, voluntary leave of absence, working part-time, exchanging holiday pay for time off, outsourcings, temporary lay-offs and personnel reductions. At the same time, Vacon will consider the re-organization of its global operations.

The need for personnel reduction is estimated at 60 persons at most. Any temporary lay-offs and part-time work are estimated to affect not more than approximately 400 white-collar employees of the company.

In the background of the need for the alignment are economic and production related reasons as well as the possible re-organization of Vacon's operations. The need for the alignment is caused by the declined order intake and the poor predictability of market prospects in the future. Vacon's financial position has deteriorated in the second half of 2011 and the company reduced its guidance for the year 2011 on 12 December 2011. The demand for Vacon's wind power products started to decline already in June 2011, and it has not shown any sign of recovery. Additionally, during the fourth quarter of the year, the demand for motor control products has also weakened.

"The reason for the weakened demand is in the prolongation and escalation of the European finance crisis. At the moment, it is particularly difficult to estimate how the markets will develop. Therefore, we will have to act now and ensure that we will survive with our feet dry if the crisis still deepens and drags on. This is the only way we can make sure that we are prepared when the market picks up," concludes Vesa Laisi, Vacon's President and CEO.

In Finland, Vacon employs altogether some 750 people in Vaasa, Tampere and Vantaa. The company will inform of the results of the negotiations after they are completed.