March 26, 2020
Group Management has decided to end all activities following years of deficits and a series of unsuccessful attempts to refocus the business.
Grundfos BioBooster will cease its activities within the coming months, as the company has failed to make a profit since its conceptualisation in 1999 despite strong technology, significant investments and various attempts to turn the business around.
“We remain dedicated to pioneering solutions for water-related challenges, which is reflected in water solutions being central to our 2025 strategy. However, following a strategic assessment, we have regrettably concluded that a continuation of BioBooster activities would not be feasible. The decision is being made now to prevent further losses and give employees and customers clarity,” says Poul Due Jensen, Group Executive Vice President, CSO.
Strong technology has formed the core of Grundfos BioBooster’s offerings but sales have remained limited throughout Europe within the wastewater treatment area.
“Project-oriented businesses like Grundfos BioBooster have an uncertain nature. Winning orders can take years and investments must be made continuously and evaluated in the long term. Patience has been required, and we believe we have given various possible routes a fair chance over the years. Further attempts to turn the business around have been investigated but deemed unfeasible,” adds Tommy Due Høy, Group Vice President, Global Service & Solutions.
The decision to end activities in Grundfos BioBooster affects all 27 employees in the company. A few individuals will be offered new positions within Grundfos to secure specific knowhow and fulfill obligations, while the rest will be offered assistance in their job search.
“All of Grundfos’ more than 19,000 employees are equally important, so letting people go will always be done with a heavy heart. Everyone at Grundfos BioBooster has worked exceptionally hard, and I want to thank all of them for their efforts. When ending a 20-year endeavor, multiple aspects come into the equation. As such, no individual or specific business unit could or should be held responsible, and we bear the responsibility as a company,” says Poul Due Jensen.
Service on wastewater treatment plants already sold will continue as part of Grundfos DK Service. No end-date for this has been set, and customers will experience service as usual.