ElringKlinger AG acquires Thawa GmbH

Dettingen / Erms, (PresseBox) - Automotive supplier ElringKlinger AG has acquired metal housings manufacturer Thawa GmbH, based in Thale, Saxony-Anhalt, for EUR 3.0 million. The sale to ElringKlinger AG was closed on January 3, 2012. In acquiring the company, ElringKlinger is looking to strengthen its activities in the field of exhaust gas purification technology. Thawa operates primarily as a supplier and production partner to Hug Engineering AG, a Swiss exhaust treatment specialist acquired by ElringKlinger in May 2011.

Based in Elsau, Switzerland, Hug is being further developed into a center of excellence for exhaust treatment technology and filter substrates within the ElringKlinger Group. In this context, it is to serve primarily as a research and development site.

In the case of new incoming orders, the Thawa plant in Thale is to be used primarily for the production of housings as well as for the so-called canning of diesel particulate filters and catalytic converters, alongside other production processes. Services previously outsourced to Swiss suppliers operating within this area are to be performed within the Group at the more cost-efficient site in Thale. Acting as an "extended workbench" for Hug Engineering AG, Thawa is to be expanded in order to accommodate the automated manufacture of larger volumes at serial production level. As part of the measures implemented for the purpose of integrating the exhaust treatment business of Swiss-based Hug into the ElringKlinger Group, significant cost items will thus be transferred to the euro area. As regards Hug Engineering AG's sales revenues, which are generated predominantly within the euro zone, foreign exchange losses arising from the euro/Swiss franc exchange rate will therefore be scaled back. This, in turn, reduces the impact of foreign exchange effects on the company's operating margin.

Thawa GmbH has fifty employees in total. In fiscal 2011, the company generated sales revenue of EUR 3.9 million. Inclusion in the scope of consolidation of the ElringKlinger Group is to take place as from January 1, 2012.

Due to increasingly stringent emission standards worldwide, engines are being equipped with more extensive exhaust aftertreatment technology. This applies not only to mobile installations in transport vehicles, locomotives and shipping vessels but also to stationary applications. Operating within the ElringKlinger Group, Hug Engineering AG is currently expanding its business with original-equipment customers within the commercial vehicle industry, focusing in particular on exhaust gas purification systems for large trucks. Combined with ElringKlinger CleanCoat coating material for soot reduction, Hug diesel particulate filters are being marketed in the commercial vehicle sector as well as the segment for off-road vehicles and stationary systems.

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