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ElringKlinger moves towards mass-volume, low-margin production

  • 07 Jun 16

The company has published a press release (see below) which indicates that it intends to become an ‘extended workbench’. The technology for the components it will deliver to a first-tier car component supplier (Brose) has been developed by this client and ElringKlinger will be the producer in two existing factories (in Hungary and Mexico) and in one new plant (in China). As ElringKlinger has neither developed the technology nor supplies the OEM directly, we believe that this is a low-margin business. The press release: ElringKlinger has received a high-volume serial-production order from German automotive supplier Brose. The contract covers the supply of door module carriers made of organo sheets, which are to be fitted to compact-class vehicles manufactured by a global car maker. Running until the year 2024, the order is worth more than €100m in total. Production in Europe is scheduled to commence in Hungary at the end of 2017, which will be followed by the start of serial production in China and Mexico in 2018. While the production sites in Hungary and Mexico are to be expanded, a new plant is to be established in China. “This large-scale contract bears testimony to our research efforts with innovative fibre-reinforced composites and illustrates our expertise in the field of lightweight components,” said Dr Stefan Wolf, CEO of ElringKlinger. ElringKlinger’s door module carriers are another structural component within the product portfolio for use in the vehicle body. “By becoming increasingly independent of drive systems, we are establishing the strongest possible foundation for the future,” explained Dr Wolf. In securing this contract, ElringKlinger has shown its determination to pursue a strategy aimed at contributing to the reduction of vehicle fuel consumption and emissions through intelligent lightweight solutions. Among other things, the innovative door module carrier helps to reduce the overall weight of vehicle doors. Their production involves forming extremely light and stable fibre-reinforced composites – so-called organo sheets – and injection-moulding plastic elements onto the parts for additional component functions – in a single step. The technology applied in this field was developed by Brose. ElringKlinger is the strategic partner for execution at an industrial level.