The regeneration of Russia’s ageing housing and new property developments have helped boost the market share of Danfoss’ Industrial Automation unit in the country. The market for Industrial Automation products is currently estimated to be around Euro 35-40 million in an area that, in general, is growing between 15-20 percent a year.

The increased activity in the housing and property market is also reflected in other industry segments. All major industrial business areas are present in Russia: shipyards, engine manufacturers, air compressor manufacturers, harvesters, bulldozers and dump truck producers. The country is also one of the largest producers of oil, gas, forestry products and minerals and these primary industries are in the process of modernising.

The renowned quality of Danfoss products makes them an obvious choice for use in the modernisation process. However, striking a balance between quality and price is an important consideration for many Russian manufacturers. As prosperity grows, quality is becoming an increasingly important factor. The market leader in petrol pumps used to produce their own valves, using Danfoss products only in the higher-end products. According to the company’s press release, a desire to improve product performance led to the company specifying Danfoss valves for all its pumps – and turnover has risen again.