ElringKlinger AG — M&A Activity 2014

Feb 19, 2014

News Details

Corporate | 19 February 2014 13:19

Collaboration between ElringKlinger and Gebrüder Kufferath AG in the field of exhaust gas purification technology

DGAP-News: ElringKlinger AG / Key word(s): Product Launch

19.02.2014 / 13:19

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Dettingen/Erms/Düren, February 19, 2014 +++ Automotive supplier
ElringKlinger AG, Dettingen/Erms, has teamed up with technical weaving
specialist Gebrüder Kufferath AG (GKD), Düren, to work on integrated
sealing and filtration solutions in the field of exhaust gas recirculation.
The two companies have already concluded a strategic cooperation agreement
to pursue this project.

While GKD, as a manufacturer of industrial mesh products, will be applying
its expertise in the field of filtration media and sieving devices made of
metal mesh, ElringKlinger will be contributing its specialist knowledge in
the manufacture of sealing solutions and their integration within complex
exhaust gas recirculation (EGR) systems. Customers will benefit from the
collaborative efforts of both companies through end-to-end access to their
know-how, fully harmonized processes and large-scale serial production. As
a development partner to the majority of international engine and vehicle
manufacturers, ElringKlinger will be responsible for the overall module and
will incorporate the high-performance low-pressure EGR filters made of 3D
metal wire mesh within its own specialty exhaust gas sealing systems. This
will pave the way for efficient integration of filtration sieves, with
integral gaskets/seals, within the exhaust flow system.

Exhaust gas recirculation: core technology for lower emissions

In response to stricter emission standards in Europe, the automobile
industry has been forced to press ahead with innovative solutions aimed at
further reducing CO2 emissions and fuel consumption without impairing
engine performance. By 2021, the fleet average has to be reduced from 130
g/km to 95 g/km. Increasingly, manufacturers are introducing downsized
engines with turbochargers to achieve this goal. The use of turbochargers
and exhaust gas recirculation is of central importance to these downsizing
concepts. At a global level, around 40% of new vehicles are to be equipped
with turbochargers by 2018.

At the same time, the Euro 6 standard sets out even stricter requirements
for the reduction of nitrogen oxides (NOx) in the exhaust tract. In order
to meet the more stringent limits prescribed for passenger cars as from
2014, high-performance systems comprising exhaust gas recirculation
technologies, diesel oxidation catalysts (DOC), selective catalytic
reduction (SCR) units and diesel particulate filters (DPF) will be
required. Low-pressure exhaust gas recirculation in conjunction with high
engine loads will play a pivotal role when it comes to achieving future NOx
limits.

EGR filters prevent particles produced during the combustion process or
originating from upstream ceramic exhaust gas filters from entering the
turbocharger and damaging components. In combination with the specialty
gaskets and seals supplied by ElringKlinger, they protect the engine and
turbocharger, in addition to scaling back CO2 emissions as a result of the
reduced loss of pressure in the exhaust gas recirculation system. As
regards sales potential, the integrated assemblies are also expected to be
particularly interesting for petrol engines featuring low-pressure exhaust
gas recirculation.

Customers have already been supplied with the first prototypes. Viability
testing for serial production readiness is currently underway. Production
of the first jointly developed components is expected to commence in 2015.
ElringKlinger has thus further extended its product range centered around
turbocharger technology. Initially, the Group is expecting to see a revenue
contribution of EUR 2 to 3 million per annum. Owing to the increasing
technical importance of exhaust gas recirculation worldwide and the
significant rise in the number of turbochargers being installed, the
company believes that its revenue potential in the medium term could be at
the higher end of the single-digit million range.

ElringKlinger AG

ElringKlinger AG is a development partner and supplier to the international
automotive industry. Operating at an international level, the Group's core
competence is centered around cylinder-head and specialty gaskets for cars
and commercial vehicles. In addition, it produces plastic housing modules
and shielding components for engine, transmission and exhaust system
applications as well as supplying industries beyond the automotive sector
with products made of high-performance plastics. Alongside components for
conventional combustion engines, the Group also supplies innovative parts
for electric drive systems. The portfolio is complemented by exhaust gas
purification technology as well as battery and fuel cell components. The
Group is acknowledged as the global leader in the field of cylinder-head
gaskets and is ranked among the top three suppliers worldwide in the area
of specialty gaskets, shielding technology and plastic housing
modules/elastomer technology. The company's success is a tribute to some
6,700 employees based at 42 sites around the globe. ElringKlinger supplies
automobile manufacturers in Europe, the Americas and Asia. In fiscal 2012,
the Group generated sales of approx. EUR 1.13 billion.

GKD - GEBR. KUFFERATH AG

The owner-run technical weaving enterprise GKD - GEBR. KUFFERATH AG is the
global market leader for metal and plastic woven solutions. Under the
umbrella of GKD - WORLD WIDE WEAVE, the company has brought together four
independent business divisions: SOLID WEAVE (industrial mesh), WEAVE IN
MOTION (process belt mesh), CREATIVE WEAVE (architectural mesh) and COMPACT
FILTRATION (compact filtration systems). With its eight plants - including
the headquarters in Germany and other facilities in the US, the United
Kingdom, France, South Africa, China, India and Chile - as well as its
branches in Spain, Dubai, Qatar and worldwide representatives, GKD is never
far from its customers.

camera-ready images can be accessed at:
http://www.elringklinger.de/en/metal-layer-metalosealtm-gasket
Reprinting free of charge. File copy requested.

End of Corporate News

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Language: English
Company: ElringKlinger AG
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: 071 23 / 724-0
Fax: 071 23 / 724-9006
E-mail: stephan.haas@elringklinger.de
Internet: www.elringklinger.de
ISIN: DE0007856023
WKN: 785602
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg,
Hannover, München

End of News DGAP News-Service

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