The ROGTEC Interview: Guillermo Elum, Sales and Marketing Director, HIMOINSA
How long have you been doing business in the region?
HIMOINSA has been doing business in Russia since 1999. We entered the market through several major Russian companies, which became HIMOINSA product distributors in the region. Both our distributors and their dealers regularly visit our production centres to receive training, in order to offer expert technical information and the latest developments to the Russian market.
Russia is a huge country in size, so our growth in the region has been progressive over time. At present, our generator sets provide power for major projects in various sectors such as Telecommunications, Industrial, Construction, Oil & Gas and even Airports.
Once we have selected our distributors, one of our top priorities has always been to assess their quick technical responsiveness, as we aim to serve the market well, providing consistent technical information and services. Similarly, the engineering and technical teams based at our production centres also attend training courses in Russia to learn about the real demands of the market and the technical specifications of the projects in the region.
Do you have a specific target markets in the region?
Russia was our first commercial area and now we are moving into other areas of Central Asia such as Kazakhstan and Uzbekistan, where we are beginning to organize a strong distribution network. While this distribution process has not yet been consolidated, HIMOINSA has been involved in direct operations with some major mining companies in the area, such as in Kazakhstan.
We cannot say which of these countries in the region is the most important for HIMOINSA. It all depends on the sectors. The mining and oil sector are always in constant evolution, so the demand for gensets here is more stable than in other sectors, where the appearance of particular projects such as the Olympics or the creation of major roads and highways, offer increased demand at a specific time. This is what usually happens in the rental and construction sectors.
What are your key products for the region and their benefits?
Designing robust and compact generator sets has been one of our strengths. Considering that many of the HIMOINSA products sold in Russia are manufactured in Spain, it must be equipment that can endure the transportation process and which facilitates logistics and storage. This is why we place importance on the tough and compact nature of our products.
Similarly, we have developed machines to work at very low temperatures. Extreme environmental conditions are very typical in some geographic points in Russia. Equipment with special heating systems and other technical features included in the ‘Winter Pack’ are prepared to withstand extreme temperatures, sometimes as low as -50ºC. You can see more details in http://www.hipowersystems.com/post-blog-details.php?nPost=16
Moreover, the red colour of our product helps to clearly identify the generator set in places where there is a lot of snow. Something greatly appreciated by our customers operating in the coldest parts of Russia, where the extreme weather conditions can hamper their work.
What potential is there for your products in the market?
There is a global energy deficit of 3%. In this regard, power generation using generator sets covers this deficit and allows demand to be met, even if this were to increase. According to the latest global reports, the figure of 3% tends to rise because global energy demand is always increasing. This will also increase the demand for generator sets worldwide.
How do you compare and compete with existing Russian Technology?
Russia is a very technologically advanced country. It is difficult to come across technologies that exceed those offered by the local market. However, we have managed to design high quality equipment, compact machines that emit lower noise levels than the products available in the Russian market. Furthermore, HIMOINSA provides generator sets with motors that consume less than those offered by the local market.
One of the company’s strengths is the fact it is a vertical manufacturer, as HIMOINSA manufactures all the components in the generator set, except the motor. This allows the company to be flexible and respond rapidly to customer demands for any non-standard requirement.
How do you see the market developing over the next 5 years in your industry sector?
We believe that our industrial sector is experiencing rapid growth. Simply covering the energy deficit of 3%, there is already an important market niche to fill. When we consider that this percentage is increasing, the possibilities for growth are even greater.
Do you have any new products being launched?
The Oil & Gas sector in Russia demands quality generator sets, that can guarantee a continuous supply which is safe, without failures and, which ensure a reduction in fuel costs, thereby reducing operation costs. Under normal conditions, the Oil and Gas sector operates 24 hours a day. In this regard, HIMOINSA has extensive experience in this market, as its US subsidiary, HIPOWER (Himoinsa Power Systems) is one of the leading manufacturers and distributors of generator sets to companies that extract oil in American states like Missouri, Dakota, Texas, etc.
Similarly, HIMOINSA supplies gas powered generator sets to companies engaged in fracking or gas extraction. In these cases, the gas generator set incorporates a device called a scrubber, through which the gas obtained from fracking is filtered and used on site to fuel the gas generator set that powers the fracking process itself. In this way, important fuel economy is achieved and the discharging of gases into the environment is avoided. Quality and savings in a single process.
In addition to the full range of gas generator sets offered by HIMOINSA, with power output ranging from 20 kW to 3.5 MW, HIMOINSA provides the Oil & Gas Market with diesel generator sets like the Power Cube Generator; a 500 kVA generator which is 30% smaller in size than the products offered by our competitors and which allows easy transport. Something highly appreciated by rental companies operating in the Oil & Gas sector, which are forced to move equipment from one extraction point to another.
Another of the energy solutions offered by HIMOINSA is the Plug & Play System that allows power to be increased or decreased according to the demand at any given time. The camps that develop around the Oil & Gas sites are mobile and require a power plant to supply energy according to the existing demand and which can be expanded, reduced and even moved to other areas where it is needed, quickly and easily. HIMOINSA works tirelessly to create these types of Power Solutions.
Guillermo Elum studied Business Administration in Spain and has many years of experience in the power generation sector. From 2004 to 2008 he was Sales Director at Genelec, the French center of the HIMOINSA Group, manufacturing in the miltary sector. Elum is Sales and Marketing director at HIMOINSA. He knows the Russian market extensively and works directly with the main companies in the Oil & Gas sector, therefore he understands the industries needs and its key solutions. HIMOINSA offers gas generator sets wich are powered by environmentally friendly fuels, such as natural gas, LPG and biogas.