MANN+HUMMEL Plans Major N.A. Expansion
DETROIT--March 4, 2003--MANN+HUMMEL, a major Tier One automotive supplier based in Ludwigsburg, Germany, plans to more than double its North American sales and manufacturing operations by 2010.Attending the 2003 SAE World Congress here March 3-6, the company's CEO Dr. Dieter Seipler said MANN+HUMMEL plans major expansions of its manufacturing operations in both the United States and Mexico. The company also expects its U.S. sales of nearly $120 million to double by 2010.
Claude Mathieu, president and CEO of MANN+HUMMEL's North American operations, said the company is studying plans for an expansion in injection molding operations in South Bend, IN, with the possible addition of two new assembly lines by 2004. A similar expansion study is underway at the company's facilities in Tlalnepantla, Mexico. U.S. expansion plans include the possible development and installation of new state-of-the-art blow-molding technology, including 3-D manipulation and suction blow-molding processes that will enable the company to produce complex, integrated air-induction systems for customers in North America.
MANN+HUMMEL's blow-molded components have captured a 10 to 14 percent share of the European market for automotive air-induction products. Industry production of intake and exhaust ducts in Europe last year alone totaled nearly $47-million dollars. The company has blow-molding production facilities in France, Germany, the U.K. and Spain.
"Our goal is to bring market-leading technology to customers in North America, while at the same time moving toward the development of more integrated product designs in both Europe and the U.S.," Seipler said. "The acquisition of Solvay's air induction and technical parts business last year is helping us to become a significant player in North America, not only in the passenger-car and light-truck segment, but in the heavy-truck sector as well."
According to Mathieu, MANN+HUMMEL's North American growth strategy is based on several factors, including:
| -- | Expanded Product Lines -- The company's Solvay acquisition has helped expand its share of the intake-manifold market. In addition, the company is aggressively pursuing OEM supply agreements for air and fuel filtration and air-intake components and systems, as well as oil-filtration components and modules. |
| -- | Growth of Current OEM Business -- Ford was MANN+HUMMEL's first North American customer and the company continues to expand its Ford business with innovative new products and technology. |
| -- | New OEM Customers -- MANN+HUMMEL is actively pursuing and winning business from other major OEMs, including General Motors and Chrysler. The company also is aggressively seeking potential business from several European and Asia-Pacific auto manufacturers with transplant operations in North America. |
| -- | Introduction of New Technology -- The company has a variety of innovative products with significant market potential in N.A., including a recyclable, metal-free plastic oil module which it already supplies in high volumes to European OEMs. The company's plastic-blow-molding technology will lead to a variety of new product offerings as well. |
| -- | Mexican Manufacturing Capability -- The company plans to expand and further leverage its manufacturing capabilities in Mexico to supply OEMs with assembly operations there as well as elsewhere in North America. The company currently produces air-intake and air-cleaning systems in Mexico, and next year plans a further expansion of its production capacity there. |
| -- | Component Integration and Modularization -- MANN+HUMMEL is aggressively pursuing a modular, integrated approach to the design of future products. Its new product designs result in weight and cost savings, and also reduce OEM assembly costs and improve overall quality. For example, a new cartridge-filter module integrates several oil-system functions, including an oil-bypass circuit and filter-pressure monitor. The module, already used by several European OEMs, is simply attached to the engine. |
"Our oil cartridge-filter module is just one example of the new, modular approach we're taking with many of our future product designs," Mathieu said. "Everything is there. You just plug in water hoses and electrical connections and you're ready to go."
"It demonstrates how we can use our experience with component integration to provide real savings and value to the customer. It's an important key to new business in North America."
Mathieu noted that the company recently had expanded its Detroit sales and program management facilities to better serve its OEM customers. At more than 9,000-square feet, the new offices are more than double the size of MANN+HUMMEL's previous facilities.
About MANN+HUMMEL
The MANN+HUMMEL Group is an international company. In 2002, the company achieved sales of approximately $1.1 billion. The MANN+HUMMEL Group currently employs around 9,500 people at 41 locations worldwide. The company develops, produces and sells technically complex automotive components such as air filter systems, intake manifold systems, liquid filter systems and cabin filters for the automotive industry, and filter elements for vehicle servicing and repair. For general engineering, process engineering and industrial manufacturing sectors the company's product range includes industrial filters, filter systems, and materials handling systems and equipment. MANN+HUMMEL's customers come from a large number of sectors, with OEM supply for the automotive industry occupying a key position. Further information about MANN+HUMMEL can be found under http://www.mann-hummel.com.