The engineering and energy group TEDOM has officially gained a new owner, the Japanese company Yanmar. Yanmar provides not just equipment for heat and power generation but also technologies for marine transport, agriculture, and construction. We discussed the advantages of mutual cooperation with Ladislav Zeman (LZ), CEO of the TEDOM Group, and Peter Aarsen (PA), CEO of Yanmar Energy Systems International.
You’ve just had some intense weeks, as is common with every deal. What are you looking forward to the most now?
LZ: Finalizing a deal is one thing, but starting to build on the new opportunities is another. Personally, I look forward to moving forward even faster than before.
PA: Exactly. We’ve used the last few months intensively so we can get straight to work.
How difficult were the negotiations?
PA: YANMAR wanted to take advantage of the current trends in the energy sector. We were very interested in strengthening our activities in the cogeneration segment. We conducted thorough research and quickly realized that TEDOM fits perfectly with our portfolio and can effectively fill the opportunities in our business model. Instead of investing our own resources and time into building this segment from scratch, we found an excellent partner.
Moreover, from a Japanese perspective, the Czech Republic is strategically located in the heart of Europe, providing easy access to both Western and Eastern European markets. It also provides a stable economy and a strong industrial base with a well-educated and skilled workforce. Particularly in engineering and technology, which is very attractive to Japanese companies looking for high-quality professionals.
LZ: TEDOM is, of course, a significantly smaller company compared to YANMAR. But that doesn’t mean we don’t have a lot to offer. We develop and manufacture cogeneration units with a wide range of power outputs, including our own engines and system solutions, which give us a competitive edge – such as remote diagnostics and a full remote control of the units. We have an excellent service infrastructure, subsidiaries in seven key global markets, and a wide network of partners worldwide. In this business, we are indeed a fullfledged partner for YANMAR in the energy sector.
It seems like you got along well as an engineering company working with another engineering company…
LZ: There’s some truth to that. Engineers can always recognize quality in others. But I wouldn’t describe TEDOM or YANMAR as purely engineering companies. Both companies have historically focused, among other things, on the development and production of specialized engines, and in that, we found common ground. However, I think we also captured YANMAR’s attention with the other business segments that are an integral part of TEDOM, particularly our wide range of energy services for both businesses and households. In the Czech Republic, for instance, we can meet all of our customers’ energy needs today.
PA: Within the YANMAR group, we have an Energy Systems division that focuses on sustainable energy production, cogeneration, and energy solutions in heating, ventilation, and air conditioning. From products to comprehensive services. TEDOM fits perfectly into this structure and will lead the cogeneration segment for the entire group, while also contributing to other overlapping areas.
What makes TEDOM’s portfolio unique?
PA: I’ll put it broadly. We value TEDOM’s full-scope capabilities – from energy needs analysis, engineering, and project management to construction and services. For example, TEDOM’s Energie division is more developed than ours within the YANMAR group.
LZ: If I were to highlight one flagship product, it would undoubtedly be cogeneration units. They are the backbone of our business. We can produce virtually every category – from micro-cogeneration starting at
20 kilowatts to large, powerful machines of up to 4.5 megawatts. Our engines handle all types of fuels, including natural gas, LPG, biogas, mine gas, sludge gas, or landfill gas. And they’re hydrogen-ready.
Where are TEDOM’s cogeneration units known today?
LZ: We operate on a global scale. For instance, we have shipped approximately two hundred units to the United Kingdom and a similar number to Poland, where we formed a joint venture with our partner
Polimex to effectively decarbonise the local heating sector. Nearly four thousand units have been delivered to Germany, and the list extends further. In Italy, we partnered with Intergen, the leading cogeneration unit manufacturer, securing a dominant position in this appealing market. In the USA, we now offer service support for over one hundred units. We’re also known in Ukraine and Central Asia…
Let’s return to energy services. Why are they attractive to an investor like YANMAR?
PA: The energy sector in Europe is rapidly changing due to governments’ commitments to reduce carbon emissions. This includes the gradual scaling back of central power plants and the introduction of new digital initiatives to utilize decentralized power plants in virtual distribution systems. YANMAR aims to follow this trend and seize the opportunities it presents. For that, we need a strong partner, and TEDOM fits the bill.
LZ: We’re living in a golden age of energy transformation, and not just in Europe. This comes with several key trends. First, technology and machinery are less often sold standalone on the market. Energy services, value-added models, and the ability to integrate technologies into larger energy ecosystems are becoming crucial.
Second, while there’s a significant influx of funds into decentralization and decarbonization of energy sources, those funds will be spent efficiently. Every solution will undergo rigorous scrutiny for energy and economic returns. This is where value-added models play a significant role, and to develop those, you need experienced partners who understand them.
And TEDOM excels at working with such partners?
LZ: Absolutely. Within our system solutions, we provide solar panels, heat pumps, and batteries, which work seamlessly alongside our cogeneration units, ensuring maximum economic returns and energy stability. A perfect example is the combination of photovoltaic plants with our cogeneration units. In summer, solar units generate energy; in winter, when there’s less sun, cogeneration units take over, also supplying heat. The performance curves of both systems complement each other perfectly.
Of course, we can also leverage other technologies from the YANMAR family to create comprehensive, well-functioning systems.
PA: That’s exactly where we want to head. In the future, the technological expertise of YANMAR and TEDOM will be combined to create a global technology and engineering platform that can be utilized across the group for all kinds of applications.
What about energy sales?
LZ: TEDOM is a relatively new player in electricity and gas sales but has built a solid reputation in the Czech Republic. We aim to provide customers with excellent personal service – with us, you talk to people, not robots. A major advantage is our own trading division. Our energy division focuses not only on energy supply but also on purchasing energy within various operational models. It’s no coincidence that we are one of the fastest-growing energy suppliers in the Czech Republic this year.
PA: We want to leverage this knowledge and expertise within the YANMAR group and naturally expand into markets that are advantageous for either TEDOM or YANMAR. Similarly, TEDOM will continue to develop and grow its ESCO services in markets favorable to this business model.
What do you mean by operational models?
LZ: Today, energy generation systems aren’t just purchased for selfconsumption. They can also be used in services like grid balancing. They supply energy to the grid when there’s a shortage. We can operate these systems as part of an aggregated block, paying the owner for the electricity supplied.
If we look to the future, where will TEDOM be in five years?
LZ: I believe we’ll become a key global player in energy transformation and decentralization, as well as a partner for decarbonization across various industries. Cogeneration will have an even stronger presence in the market, along with accompanying services. We’ll seize opportunities for global business through PPA or EPC models and teach companies how to turn electricity into a profitable commodity. I don’t think we’ll have a chance to get bored.
PA: Beautifully said. We’ll do everything we can to ensure TEDOM grows faster than the market. We’ll strengthen our position in the energy services market beyond the Czech Republic and enter new markets together. In the long term, we aim to become the global leader in solutions up to 5 MW.
Thank you for the interview.
