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Bosch presents annual financial results for 2019, continues strong commitment in Romania

  • Consolidated sales in Romania amount up to over 2 billion lei (436 million euros) in 2019
  • Total net sales grew by 18 percent in 2019 to 6.7 billion lei (1.4 billion euro)
  • Investment of more than 360 million lei (over 76 million euros) in 2019

Bosch, a leading global supplier of technology and services, ended its 2019 fiscal year with over 2 billion lei (436 million euros) in consolidated sales in Romania. The total net sales of 6.7 billion lei (1.4 billion euros), including sales of non-consolidated companies and internal deliveries to affiliated companies, amounted to a year-on-year increase of 18 percent. “Bosch registered strong growth in 2019 as the company continued its investments and expansion plans in Romania by following a strategy centred on technology and innovation”, said Mihai Boldijar, general manager of Robert Bosch S.R.L. and the representative of the Bosch Group in Romania. “Despite the weak global economy and the drop in the automotive production, the Bosch Group in Romania continued its overall growth in the beginning of 2020. Nevertheless, due to the worldwide economic downturn generated by the Covid-19 outbreak, this year is an atypical year also for Bosch. Given the many imponderables, we cannot give a forecast for 2020 as a whole”, Boldijar added. Bosch gradually ramped up its production in Romania after a temporary cut back in its local production activities. The company is putting numerous measures in place to ensure that associates are adequately protected against coronavirus infection. Restart preparations were launched in a coordinated, joint approach with customers, suppliers, authorities, and employee representatives.

The number of associates employed at Bosch Romania in 2019 stood at over 8,000.

 

Bosch contributes in the fight against COVID-19

 

Wherever possible, Bosch wants to contribute to efforts to contain the pandemic, for instance through the newly developed rapid Covid-19 test and the Vivalytic analysis device. Bosch intends to produce more than a million rapid tests in 2020, and to increase this to three million next year. Furthermore, Bosch produces facemasks and disinfectants in some regions, mainly used for the protection of its associates.

In Romania, Bosch donated medical equipment, protective equipment, Bosch household appliances, power tools and car components to first line hospitals and medical personnel and contributed, together with important players of the local automotive industry, to the commissioning of 50 mechanical ventilators. Bosch volunteers have individually donated money, laptops and other electronic devices, thus providing food supplies and smoothening access to education for several less advantaged families. “Our appreciation goes out to all people – medical personnel, law enforcement, scientists, and workers – fighting the virus on the front line. Furthermore, we would also like to thank our associates and business partners for their solidarity and involvement”, concluded Mihai Boldijar (photo).

 

Bosch continues investments in Romania

 

Bosch invested approximately 360 million lei (over 76 million euros) in Romania in 2019, mainly in the development of its Mobility Solutions manufacturing plants in Cluj and Blaj as well as in the R&D field, in the Bosch Engineering Center Cluj. 2019 was a year of significant growth for the Automotive Electronics plant in Jucu, Cluj County, having successfully increased its production and warehouse capacities, as well as its products portfolio and inaugurating its second manufacturing hall. Investments value reach up to 40 million euros. In Cluj, Bosch manufactures state-of-the-art products offering a rich, balanced and competitive portfolio of electronic control units dedicated for increasing safety in traffic and driving convenience, delivering, since 2014, over 200 million electronic control units to its international customers.

Furthermore, the Bosch production unit in Blaj has registered a significant development in 2019, in terms of both production and infrastructure. Due to the high customer demand, the company has increased its production capacity for high-quality car components such as solenoids, transmission control components, and electronic modules. Much more, Blaj plant started production for a new sensor, the particulate matter sensor, EGS-PM. In addition, Bosch inaugurated in 2019 a new office and laboratory building that hosts about 250 associates, while relocating its warehouse to a new logistics centre of over 20,000 square meters. The Bosch plant in Blaj follows the Bosch Group lifelong learning philosophy, therefore a new Bosch Training Centre was inaugurated, in Blaj, at the beginning of 2019. As a recognition of its high-quality products, the manufacturing unit in Blaj became the global Bosch leadplant for knock sensors starting 2020.

 

Further development of R&D activities in Romania

 

Since 2013, Bosch is successfully conducting research and development activities in Romania. The R&D location registered a rapid growth in the last years. Young and dynamic, the Engineering Center Cluj is the place where talented engineers work on state-of-the-art technology projects, like automated driving, electric and connected mobility and the Internet of Things. Currently, roughly 800 associates are working at the Bosch Engineering Center Cluj. The official inauguration of the Engineering Center Cluj is planned for this year. Its new state of the art office building will support ECC’s further growth in the field of automated & connected mobility.

 

Positive development across all Bosch business sectors

 

In the Mobility Solutions business sector, the Automotive Aftermarket division registered a double-digit growth in 2019. Bosch’s service network counted more than 400 car service workshops in Romania in the previous year. In the Energy and Building Technology business sector the Thermotechnology division focused mainly on renewing and expanding its product portfolio by adding new Condensing Wallhung Boilers and launching, as a premiere on the Romanian market, its own line of Air Conditioning Solutions. Sales of the Bosch Building Technologies division continued the upward trend of the last three years, registering a double-digit growth in 2019, represented mainly by complex, integrated solutions. This year, the Building Technologies division celebrates 100 years since its establishment and plans on launching new products and solutions on the European and Romanian market such as the INTEOX security platform. In Timisoara the Bosch Service Solutions division provides Business Process Outsourcing services in 18 languages. In 2019 this activity registered a double-digit growth. In 2020 Bosch Service Solutions will focus on specialized services, such as controlling and software-based solutions. The company delivers tailored software solutions that respond to its customers’ needs, taking the time to understand the pain-points and problems they face in their daily jobs, offering solutions based on process mapping and optimization. Furthermore, the Consumer Goods business sector also had a good performance in 2019. The Power Tools division saw a strong double-digit growth in the segment of professional tools and rangefinders, that gained relevant market share. Moreover, last year the Bosch division launched on the Romanian market the X-LOCK system, a Bosch Power Tools innovation. Moreover, BSH Electrocasnice also continued the trend of recent years, managing a double-digit growth, out-performing the market both in large and small domestic appliances and strengthening its competitive position. In 2019, BSH celebrated 20 years since entering the local market and 4,800,000 sold home appliances. For 2020, the company is preparing to launch on the Romanian market the luxury appliances brand Gaggenau, as well as a line of Bosch products such as dishwashers, XXL bottom freezers, and new kitchen machines with incorporated scale. The Industrial Technology business sector has registered a positive development in 2019. The Rexroth division followed the Bosch dual strategy in developing Industry 4.0 solutions: implementing connected industry solutions in its own production units to enhance efficiency and carrying out projects for the local industry.

 

Bosch long-term commitment to education

 

Bosch invests in education, reiterating its long-term commitment to the educational system in Romania, constantly developing programmes that sustain the relationship between education and the business environment. Approximately 1,000 students participated last year in specific programmes in Bosch locations in Romania. In 2019, the Engineering Center Cluj together with the Technical University from Cluj-Napoca launched a new master’s programme entitled “Management and Control Systems of Vehicles”. In addition, Bosch has been a reliable partner of local schools in the dual education project since 2013 seeing over the track of over 340 high school students that took their first step towards a career in the automotive industry by practically preparing in specific fields at the Bosch production sites from Blaj and Cluj.

 

Social responsibility, a core value for Bosch

 

Bosch constantly expanded its social responsibility activities in Romania by supporting several charitable organizations and social institutions. In 2019, the company conducted over 30 initiatives, continuously encouraging its associates to become good deeds ambassadors.

 

Bosch Group: Outlook for 2020 and long-term strategic course

 

In view of the coronavirus pandemic, Bosch anticipates considerable challenges for the global economy in the current business year. To achieve at least a balanced result, will take a supreme effort, the board of management of the Bosch Group announced during the recent Annual Press Conference in Germany. Despite the challenges of the current situation, Bosch is maintaining its long-term strategic course: the supplier of technology and services is continuing with its systematic pursuit of ambitious climate goals and is developing the activities required to support an expansion of sustainable mobility. “Although other issues are currently in the spotlight, we must not lose sight of the future of our planet,” said Bosch CEO Volkmar Denner. Bosch will reach its global climate action targets for 2020 and make all its 400 locations worldwide climate-neutral. In addition, Bosch set itself the goal to make upstream and downstream activities along the value chain as climate neutral as possible – by 2030, the associated emissions (Scope 3) are expected to fall by 15 percent. Moreover, the company plans to pool the experience from more than 1,000 energy-efficiency projects of its own in a new advisory company, called Bosch Climate Solutions. As climate action is accelerating structural change in many sectors, hydrogen is becoming increasingly important, both in the automotive industry and in building technology. Bosch is therefore working with partners on mobile and stationary fuel cells. When it comes to mobility, what is important according to Denner, is a broad technology offensive that not only sets out a battery-electric path to sustainable mobility, but also takes into consideration efficient combustion engines and especially renewable synthetic fuels and fuel cells.

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