Emerson, which is in the business of building compressors for heating, ventilation and air conditioning units, has released an ambitious growth strategy which includes expanding into refrigeration.
Company CEO David Farr said the company aims to be less reliant on residential air conditioning sales.
By focusing on refrigeration, Emerson’s climate unit can cut its reliance on the air conditioning market to about a third of sales over time from 42 per cent in 2011.
Farr said most of the new demand will come from developing nations.
Emerson is one of the biggest providers of air conditioner compressors in the United States and the company is confident of sales growing at double digit rates.
In a presentation, Farr said the $100 million global market for compressors in transport refrigeration will grow 21 per cent a year through to 2015.
He said there will be 16 per cent growth in the $86 million market for industrial refrigeration units.
Emerson’s climate unit generated 16 per cent of its total $24 billion revenue in 2011.
The climate unit is one of four businesses the company will focus on for growth.
Other areas are network power, process management and industrial automation.
Farr has been CEO since 2000.
Earlier this year Emerson spent $50 million to purchase Johnson Controls, a marine container and boiler controls business.
Global market is growing
