Faurecia announced that it has entered into an agreement to acquire 100% of the Swiss company Hug Engineering, a manufacturer of exhaust gas reduction technologies for engines above 560 kW. Hug Engineering is currently owned by the German Group ElringKlinger.
The transaction is subject to regulatory approval in some European jurisdictions and is expected to occur during the first quarter of 2018. No financial details were provided.
“This is a great step forward for Faurecia in its strategy to improve air quality through world class aftertreatment systems for all types of diesel engines,” said Christophe Schmitt, executive vice president of Faurecia Clean Mobility. “The combination of Faurecia’s global reach and world leading innovative systems for commercial vehicles with Hug Engineering’s systems expertise will enable us to grow rapidly in the high horsepower market as regulations come into force.”
Faurecia said that the market for emissions technologies is expected to grow rapidly to reach €2.4 billion in 2025, as regulations come into force which will cover more than 75% of the market as compared to only 25% today.
Hug Engineering is a major supplier of emissions technology in Europe and one of the largest players worldwide, Faurecia said. Its key technologies include diesel particulate filters and selective catalytic reduction systems used in rail, marine, off-highway and power generation applications. The company has around €50 million in yearly sales and employs 230 people worldwide in five countries.
Founded in 1997, Faurecia is a major supplier of emissions technology, seating and interior system to the global automotive industry. With 330 sites including 30 R&D centers in 34 countries, it has total sales of €18.7 billion in 2016 and has a workforce of 100,000 people.