THE new owner of Artemis Intelligent Power has pledged to create jobs and invest in the engineering company’s Midlothian base after clinching a deal to gain control of the business.
Danish multi-national Danfoss acquired the majority of shares in Artemis, which specialises in hydraulic system development, for an undisclosed sum.
Artemis had been wholly-owned by Mitsubishi Heavy Industries (MHI) of Japan since 2010. It will now be run as a joint venture between Danfoss and MHI, with the Danish firm the controlling party.
Danfoss, which has interests in the power solutions, cooling and heating sectors, highlighted the potential of Artemis’s Digital Displacement technology to its ambitions. It said the technology would enable the company to develop hydraulic pumps, motors and systems for use in off-road vehicles, trains, industry and other sectors around the world.
The Artemis website notes the company was established in 1994 to develop the next generation of hydraulic machines using Digital Displacement technology. Its systems are deployed across a range of sectors, from rail and aerospace to off-road machinery, with its website stating that its systems can reduce fuel consumption and boost productivity when applied to vehicles such as excavators and trains.
Danfoss raised the prospect of investing in a new manufacturing facility near its current site at Loanhead, if growth dictates. And it declared it will “generate jobs” in Scotland, revealing that it expects to unveil development plans in the weeks ahead.
Eric Alstrom, president of Danfoss Power Solutions, described the deal as “tremendously important” for the Danish company.
He said: “This (Artemis) is a true differentiator in a market that to some extent has become pretty commoditised. If you think about the excavator market worldwide, it is very mature and traditional technology that is being used. Artemis Intelligent Power gives us the ability to come with a totally new value proposition when it comes
to both efficiency, as in fuel efficiency
and emissions, and also productivity.”
Artemis currently has around 50 employees, led by managing director Niall Caldwell, who took over from co-founder Win Rampen in 2013. Mr Rampen has been the chairman since then.
Mr Alstrom praised the “brain power” of the team Danfoss has inherited at Artemis, describing his new colleagues as the “assets” of the Scottish operation. “These are really brilliant engineers with strong technical background and degrees, all on the quest to come up with the best solution in an industry which has been dominated [by traditional technology]. It is very exciting for us.”
Stressing that it is not the practice of family-
owned Danfoss to extract value from
businesses it acquires and shut them down, Mr Alstrom added: “We are in Edinburgh to stay and we intend to invest further. We already have ideas for additional activities we can place in Edinburgh because of the great quality of the people.”
Mr Caldwell, who joined Artemis in 1999, said: “For as long as people need to dig, build and plough, we will need heavy machines to help. But this market urgently demands cost-effective digital technologies to reduce emissions and enable automation.
“I’m thrilled that our technology and our team have been recognised as a key part of the solution by a leading global manufacturer. Like Mitsubishi, Danfoss sees developing energy-saving technologies as the foundation of its future business.”
The deal comes after a consortium comprising Danfoss and Artemis secured £11 million from the Advanced Propulsion Centre UK to help develop Digital Displacement technology, alongside Scottish firm Robbie Fluid Engineering.
The most recent accounts for Artemis show profits dipped to £33,418 in the year ended March 31, down from £191,549, which came as revenue climbed to £3.8 from £2.8m. The directors said administrative expenses had been “substantially higher”.
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