APC 2006 Annual Report Download - page 68

With the acquisition of Citect (Australia), the Group is
now the uncontested leader in Supervision Control
and Data Acquisition (SCADA) software and Manufac-
turing Execution Systems (MES).
A major strategic
initiative in critical power
In October 2006, Schneider Electric made a friendly
offer to acquire all the outstanding shares of US-based
APC, the world leader in critical power with 2006 rev-
enue of 2.4 billion (up 20% from 2005). APC offers a
perfect fit with Group subsidiary MGE UPS Systems,
which leads the European critical power market and
ranks second worldwide with 2006 revenue of 668
million. This combination will make Schneider Electric
a high-performance powerhouse in the most vibrant
segment of the electrical distribution market. Worth an
estimated $7 billion, the global critical power market is
expected to grow by 7%-8% a year over the long term.
The value created by this transaction is expected to
exceed $3 billion.
The $6.1 billion acquisition was finalized on February
14, 2007.
Innovative new products
and services
The productivity of our R&D teams, who work in close
cooperation with marketing to meet customers’ expec-
tations, was reflected in the introduction of several
innovative products during the year.
In electrical distribution, 2006 saw the launch of
new products in the areas of protection and safety,
energy savings, installation systems and control and
critical power. Highlights included:
Okken, a low voltage switchboard offering enhanced
safety and uninterrupted service features. Okken is
built to fully withstand vibration and corrosion.
Pragma, modular enclosures for commercial and top-
range residential buildings.
Domae Quick PF, the first lightning arrestor with an
integrated grounding device and a complete end-of-life
security system. This innovative, ergonomic and effi-
cient lighting arrestor was specifically designed for the
residential and small business market.
RED, a recloseable residual current circuit breaker that
automatically reinstates power supply after checking
for earth faults, for secure protection.
FIP’clic, an easy-to-program range of products to
manage electrical heating in homes and achieve sig-
nificant energy savings.
Alvaïs, a range of antibacterial light switches that
meets the demanding cleanliness standards of health-
care facilities, food service outlets, childcare centers,
food and beverage companies and pharmaceutical
firms.
In Automation & Control, the Group rolled out
products with more and more embedded intelligence,
smart and simple solutions and software to enhance
development productivity. Notable launches included:
Altivar 71 and 61, speed drives that are particularly
well-suited for high performance applications. These
high-power drives feature advanced functionalities.
Altivar 21, a speed drive for motors from 0.18 to 30
kW. Altivar 21 is designed especially for HVAC sys-
tems.
Lexium 05 and Lexium 15, motion controllers that are
compatible with Ethernet, CANopen and other stan-
dard networks and that are easy to integrate in all
types of automation architectures.
A global R&D base
The Group has substantially internationalized its R&D
base to bring its R&D centers closer to customers,
innovate closer to needs and adapt production
processes to local conditions.
As in France, the Group has high-performance R&D
teams of around 1,500 people in Germany, the United
States and Japan.
In 2006, the Group stepped up its research and inno-
vation in digital electronics, power electronics, mecha-
tronics, software and Internet-based technologies. Key
events:
In January, the Electropole center in Grenoble,
France opened. Electropole is the world’s largest
power protection and control R&D center.
In March, the Group’s highly innovative HOMES proj-
ect was selected as one of five supported by the Indus-
trial Innovation Agency (AII) set up by the French gov-
ernment. In cooperation with world leaders in lighting,
building control, shutters, HVAC and other systems,
the Group will develop technologies and solutions for
active energy control that will reduce energy use in
buildings by up to 20%, in both the new and renovation
segments. This project underscores the Group’s ambi-
tions in the energy efficiency market.
In May, the Group-led Minalogic competitiveness
cluster was certified. Bringing together researchers
and manufacturers in the Grenoble region, Minalogic
develops chip-based embedded intelligence technolo-
gies that will be a core part of the intelligent electrical
distribution and automation systems of the future.
Efficiency
New customer-focused organization
In July 2006, the Group aligned its organization to be
closer to customers and speed execution by being
more responsive, innovative and efficient. The new
organization includes seven business units, a corpo-
rate Strategy, Customers and Technology Department
responsible for overseeing the deployment of Group
strategy in the business units, and an Innovation
Department created to speed the process of identify-
ing needs, developing products and bringing them to
market and to expand scientific and technical partner-
ships.
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