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Major contracts for ElringKlinger subsidiary Hug Engineering AG in the area of exhaust gas purification technology
The Swiss-based subsidiary of ElringKlinger will supply the end-to-end exhaust gas purification technology for a stationary electricity power plant in North America. Fired by gas and light oil, the plant generates 170 MW of electricity.
Furthermore, Hug will develop and manufacture exhaust aftertreatment systems for diesel engines used to power a series of six river cruise ships. The Hug exhaust gas purification systems include a catalytic diesel particulate trap filter as well as oxidation catalytic converters for the reduction of hydrocarbon and carbon monoxide emissions.
The majority of revenue attributable to the two projects will contribute to sales in fiscal 2013, with the other part being generated in the current 2012 financial year. The overall volume of the contracts is in excess of EUR 5 million.
In response to more stringent emission standards worldwide, engines used in commercial vehicles as well as within the off-road segment will be equipped to an increasing extent with comprehensive exhaust aftertreatment technology.
CARB accreditation offers significant potential in the US
Certification of Hug's diesel particulate filter technology by the California Air Resources Board (CARB) in the first half of 2012 represents an important milestone for the Swiss exhaust treatment specialist. This has opened up a key segment of the US automotive aftermarket for buses and trucks with a gross vehicle weight rating of over 6.34 metric tons. Vehicles of that category, which are subject to Californian emission standards, have to be retrofitted with diesel particulate filters. The company has already secured initial contracts totaling around USD 2 million. Additionally, CARB accreditation for engines with exhaust gas recirculation is expected for the second half of the year, which will unlock further sales potential.
Beyond the retrofit market, Hug Engineering AG, together with ElringKlinger AG, will also be looking to supply original-equipment customers in the commercial vehicle as well as the agricultural and construction machinery industries with components and complete exhaust gas purification systems.
Headquartered in Elsau, the Swiss Hug Group has been part of the ElringKlinger Group since May 1, 2011. ElringKlinger AG acquired a majority interest in the exhaust treatment specialist, thereby strengthening its strategic position in the field of exhaust after treatment.
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