Graham Rodd is heading up the UK arm of MHG Heating and the company is off to a good start. Here, he talks to Paul Braithwaite about his philisophy and plans for the future.
Graham Rodd won the HVCA's S-factor at HEVAR London.

His product, the Thermipro, a novel hybrid system for integrating renewable technologies, ticked all the boxes as far as the judges were concerned and the audience also voted it a winner. Not bad for a firm which is only in its second year!

His is virtually a start-up company. But with a difference! The managing director of MHG Heating Ltd is in it for the long term, something he can say with confidence as the UK business is backed by its German parent.

It is a good deal for Graham as he has a stake in the future of the UK company and the German parent knows someone with a share in the UK arm is on watch.

This tie with a local front man is, he says, happening more as MHG, formerly Man Heating Group, stretches its wings across the world. Currently there are offices in 35 countries.

MHG UK moved into its 2,000ft2 offices and warehouse in Tadworth, Surrey, in January 2008.
'The warehouse is big enough for now, especially as our parent company holds stock to the value of £5million and, if necessary, it can be trucked in the next day.'

And he expects it will serve for at least three years before he has to consider a move to bigger premises. For now, Rodd is into brand building, using exhibitions, advertising and direct mail. It is a case of once the industry discovers his products, they will use them.

Vast R&D resource

'Some of my products are the best on the market. Some are only as good as others. But they are all of good quality and have been well designed and manufactured.'
He says the German parent has a vast R&D resource. He reckons MHG's manufacturing base and its willingness to listen are just two of the reasons he has never had a moment's regret since he joined.

Take the product which won the HEVAR S-factor!
'The R&D department has taken the feedback from all their subsidiaries and turned it into a product clients want.'

And Graham is backing the products with technical sales people.
'We are more than just box shifters, we have recruited technical sales engineers who can back the product to the hilt,' he insists.

'We can give our clients as much or as little technical support as necessary. We are willing to be involved in the design, specification, application, and installation (although MHG is not an installer). We realise we have to offer something better than the next firm.'
He adds that, with the economic downturn, staff in consultancies have been made redundant and expertise has been lost. 'Consultants and contractors need support now more than ever.'
There is a three-year parts and labour warranty.

'We know what goes into the products, we know the design and build quality of the products.'
It shows MHG has faith in its products and that it is definitely here for the long haul, he adds.
So for those who do not know what products MHG UK has on offer, the company manufactures gas condensing boilers, both wall-hung and floor standing, from 16kW to 900kW. (ProCon and ProCon HT)

Graham says there is also a new boiler in test which will go to 2MW. The firm also manufactures a range of air to water, water to water and brine to water heat pumps, from 3kW to 53kW as standard and greater than 60kW as special builds.

Latest product in this range is the ThermiPro. Basically this is an air-to-water heat pump, 500l thermal store, gas-condensing boiler, all controlled by a system regulator and all combined in a single, compact, high-tech unit which includes a connection for solar and a biomass boiler.

'The controller decides which device should be used. For instance, if there is plenty of sun, the solar is used to heat the thermal store. It can tell whether the air-source heat pump should work or, perhaps, the gas condensing boiler with the biomass boiler should be used.
It will monitor the inside and outside temperature constantly.

So where would this product go? Graham admits it is a German product and is installed in the utility rooms or cellars of larger houses over there. In the UK, the ThermiPro has been installed while extensions are being built or in offices or commercial premises.

'The controls can be used with other manufacturers' boilers, solar thermal or biomass or oil-condensing boiler or perm any one from five.'

Flexible

And the controller is flexible enough to be able to concentrate the unit to do what is needed by the users. So if there were a high hot water requirement then the controls could be set for this.
The firm also supplies a number of tanks and solar thermal solutions. Next come oil boilers including condensing boilers for off-gas areas.

Plus the company offers a range of burners including the Rocket Burner which has blue flame technology.
He says when oil boiler engineers see the blue flame, they are amazed. 'We have a mobile boiler unit which we can take around to consultants and contractors. When we turn it on, the flame is almost invisible and some engineers have even asked when we are going to turn it on.'

The company's Rocket Burner has NOx levels of less than 108mgk/Whr which, says Graham, is the lowest on the market at present - and CO levels of less than 25mg/kWhr. Plus there is zero soot.

'This means there are virtually no deposits in the combustion chamber and therefore little deterioration in the burner's performance.'
Graham reckons this alone saves some 10% of fuel costs. With more than a million sold to date in Europe the product is well proven.

Add this to an EcoStar condensing boiler and a glass heat exchanger and the savings are considerable.

A further extension to the EcoStar range is the introduction of the EcoStar Hydrid. An oil condensing boiler complete with an integrated modulating air to water heat pump and integral controls that can also control a solar system.
The burners range in size from 15kW to 15,000kW.

MHG is the third largest burner manufacturer in Germany and is an OEM supplier to a number of other boiler manufacturers. 'We are talking to three boiler manufacturers here.'

The mobile unit is also used for training purposes here too with the same result - engineers see the burner in use.
Turnover for the German parent is around £50million. The UK turnover will probably go to £1million plus this year which is not bad for the second year of trading. And in three years time Graham expects to be turning over £4million and, with margins as tight as they are, turnover counts.

For the burner sales, Graham is optimistic. Yes, he understands some manufacturers and engineers have been using a particular burner for years without even thinking about it but 'once they realise the design, concept, quality and how easy it is to maintain, they will begin to change but it will take time'.

There are five area sales engineers and two administration/ warehouse staff. Staffing levels have been kept intentionally lean to ensure the pricing structure can remain competitive while not undermining customer support. There are 20 service agents but he would like to increase the number in certain areas. And Graham uses the training days, not only to show off the equipment but also to recruit service companies.

Customer care figures large in his philosophy. 'We could have started up without a warehouse using a courier service to pick up from Germany and deliver kit around the UK but then the level of service could have dropped to an unacceptable level.'

For instance, when there is a delivery for a client, MHG's sales technician will visit the site on that day or the next to check that everything arrived in good working order. He admits to his share of mistakes but it is how these are resolved that win or lose a client's trust. 'If there is a problem, we try and resolve it quickly and to the client's satisfaction, then we work back until we find the cause and try to engineer it out.'

And he will not allow his sales people to sell kit which is not suitable for a project.
'I insist they tell the client they do not think this equipment will fit the project. When clients realise they are not being sold just for the sake of a sale they appreciate it and return to us when the next project comes up - hopefully.'

He adds hastily it doesn't happen often 'but it does not help us if we specify a boiler which will not work properly on a project.'
He tells sales staff that should this happen they will have to spend too much time - which should be used for selling - supporting a project which will not come right.

Revolutionary? No, just common sense! I get the impression Graham Rodd is an ethical trader. But then honesty is surely the best policy, especially when mixed with customer care and satisfaction. As he says, he is in it for the long term.