Cooperation is success

When the owner of HP Valves decided to sell the company in 2005, the management team feared it would lose its strategic independence if sold to a competitor. Among the interested parties was Indutrade. “When Indutrade explained their business model of decentralisation and entrepreneurship
we thought it was too good to be true,” says Marten Hinsenveld, Managing Director of HP Valves.

 

Eleven years later Marten verifies that all really was true. “Everything worked exactly as they told us. We kept our independence and opted for our own strategic plan, and always got support when we needed it.”

The Dutch company HP Valves designs, manufactures, sells and service medium- and high pressure valves. Customers are leading OEMs and EPC contractors in the global power and steam market, such as GE, Siemens and MHPS, and approximately 95% of sales are exported. 

Strong support when needed

“I can proudly say that HP Valves has made an astonishing journey since it was acquired. In 2005 we had sales of EUR 8 million – some ten years later they are now up to EUR 85 million, corresponding to impressive average annual growth of 23%,” says Marten. “Such growth doesn’t come without investments and costs, and if it wasn’t for the financial and industrial support from Indutrade, it would not have been possible.”

“We have grown both organically and through acquisitions. Already during the first year Indutrade supported us in the move to a newly built facility, which was extended in 2008. In 2009 we acquired a Korean company, Key Valve Technologies (KVT,) with whom we already had a close cooperation for a number of years. At the acquisition we moved KVT to a new and bigger facility and in 2013 we doubled the size of their factory,“ says Marten. “To have access to Indutrade’s knowledge and experience in conjunction with the acquisition of KVT was invaluable.

“And now we have outgrown our factory in the Netherlands again, so we have just completed our re-location to a brand new highly automated valve factory. This will allow us to combine high flexibility with high productivity, setting a new platform for further growth.  We plan to expand geographically as well as our product portfolio,” says Marten. 

Entrepreneurial freedom

“I have also enjoyed the possibility to participate in the annual managing directors conference for all companies in the Indutrade Group. It’s a good platform for Indutrade to present its culture, views, experiences, best practices and for all MDs to meet in a pleasant atmosphere. It really creates a family feeling; there is no pressure and nothing is forced, and it presents good opportunities to discuss and learn from each other.

“The entrepreneurial freedom given by the Indutrade model has meant a great deal for me and my management team members personally as well,” says Marten. “We have been able to develop HP Valves in the direction I and my colleagues wanted. ­Indutrade's decentralised business model has made it possible for me to focus on customers, coworkers, suppliers and business. We definitely have the strategic freedom we were looking for in 2005. Over the years we have been able to show profitable growth, and deliver healthy dividends to ­Indutrade. The deal was truly a win-win.”