Bosch Group strengthens its position in market of climate technology

By Alimat Aliyeva

Deutsche Welle (DW) media company announces the largest deal in the history of the German concern, which will make it one of the world leaders in the market of air conditioners and heat pumps and reduce dependence on the production of cars with an internal combustion engine, Azernews reports.

"The Bosch brand was strongly associated in the Soviet Union by motorists with spark plugs, and by housewives with washing machines and other household appliances. Indeed: the German engineering giant, with annual revenues of more than 90 billion euros, is the world's largest supplier of components for the automotive industry, primarily for manufacturers of cars with internal combustion engines (ICE). And this is what has become increasingly worrying for the management of the concern," the article says.

DW writes that the concern has concluded the largest deal in the 137-year history of the company, which it has now announced after signing the agreement on July 23. The purchase of assets worth $ 8 billion, which amounts to approximately 7.4 billion euros, is designed to significantly strengthen Bosch's position as a manufacturer of products related to household, or rather, climate technology: these are air conditioners, heat pumps related to them in technology and other electrical equipment for cooling, ventilation and heating of residential premises and small commercial buildings.

Thus, the concern founded in 1886 in Stuttgart with the official name Robert Bosch GmbH reacts immediately to two main global trends of the 21st century: climate warming and decarbonization of all spheres of life, the publication points out.

As noted in the Bosch press release, the importance of climate technology is growing both in Europe and around the world. Heating technology is moving away from fossil energy sources such as oil and gas towards heat pumps and hybrid solutions based on heat pumps.

Under the terms of the deal, the German concern buys from the American Johnson Controls corporation its global division for the production of climate and heating equipment and at the same time fully acquires its joint venture with the Japanese industrial holding Hitachi, the company for the production of Johnson Controls air conditioners-Hitachi Air Conditioning. As a result, the German concern, which already employs 430,000 people worldwide, receives an additional 16 production sites and 12 design centers in more than 30 countries.