Germany
based automotive components major Continental has strengthened its systems
competencies in the field of drivetrain technologies. The company intends to
purchase the outstanding shares in Emitec Gesellschaft für Emissionstechnologie
mbH. Emitec, to date a 50-50 joint venture co-owned by Continental and GKN plc
– will be acquired by Continental and integrated into its Powertrain Division,
according to a company statement. Emitec has a plant in Pune, India, besides
other spread globally.
With the planned acquisition of Emitec,
Continental will emerge as a supplier of exhaust after-treatment systems.
Completion of the acquisition is subject to merger control clearance, according
to a company statement.
Based
in Lohmar, near Bonn, Emitec is a leading supplier of emissions technologies
and was founded in 1986. Its product portfolio includes metal catalytic
converters, particle filter components, and dosing modules for selective
catalytic reduction (SCR). Since getting started, the company has produced more
than 170 million of these components. Emitec has a workforce of approximately
900 employees at locations in Europe, U.S., and Asia. SCR, which is set to
become increasingly important in the future, reduces nitric oxide in emissions
by injecting a urea/water solution into the exhaust system. Ever more stringent
emissions limits in the years ahead will make it necessary that virtually all
diesel vehicles be equipped with a SCR system.
"The
intended integration of Emitec into the Continental Corporation is a
strategically significant step. We will now be able to supply those of our
customers requiring all-in-one solutions in the key growth market of exhaust
aftertreatment. Above and beyond this, the acquisition will enable us to
realise synergies between the Powertrain Division and Emitec, touching on
everything from development and production through to purchasing," points
out José Avila, Member of the Continental Executive Board and President of the
Powertrain Division.
"Emitec
has been a great investment for GKN. It is a good business that will now
benefit from full connection with Continental’s emissions technologies. I would
like to thank everyone in Emitec and offer them my best wishes as the business enters
this new phase,” said Nigel Stein, chief executive of GKN plc.
Continental
has a broad product portfolio for exhaust aftertreatment involving various
business areas. In the case of SCR solutions, for example, the different
Business Units in the Powertrain Division develop and produce the injection
system – including sensors, injectors, control devices and software – while the
ContiTech Division contributes the heatable hose lines and Emitec the dosing
module. The latter is a transfer unit connected to the urea tank via the
flange. The underlying technology parallels that found in the gas and diesel
transfer systems offered by the Powertrain Division's Fuel Supply Business
Unit.
The
envisaged Emitec acquisition will thus yield synergy potential in conjunction
with these components. And whereas Emitec shares responsibility for metal
substrates for catalytic converters, metal diesel particulate filters, and SCR
dosing modules, Continental Powertrain will be able due to its wide product
portfolio to offer emissions reduction technologies as complete systems to the
customers in the future – from configuring on through to its integration, use
and calibration.
One
of the globally leading suppliers for metal catalytic converters and particle
filter components
Emitec
develops and produces the SCR dosing module at its plant in Faulquemont,
France, which went into operation in 2012. The company's other production
locations are in Lohmar and Eisenach in Germany, Fountain Inn, South Carolina,
in the U.S., and Pune in India. Other development and testing centers are
located in Germany and Denmark. Emitec also has branch offices in Shanghai,
Tokyo, Seoul and Rochester Hills, Michigan (near Detroit). Its customer roster
includes all big-name car, truck and motorcycle manufacturers. In the
off-road-sector, it supplies producers of tractors, agricultural implements and
construction machines.
Source: Continental / Picture of catalyst
substrates