AUBURN HILLS, Mich., Dec. 22, 2017 /PRNewswire/ -- Faurecia today announced that it had entered into an agreement for the acquisition of 100% of the Swiss company Hug Engineering, a market leader in complete exhaust gas purification systems for engines above 750hp. Hug Engineering is currently owned by the German Group ElringKlinger.
High horsepower engines are used in marine propulsion, power generation, rail, agricultural and other industries. The market for emissions purification systems for these engines is expected to grow rapidly to reach €2.4 billion in 2025, as regulations come into force which will cover over 75% of the market as compared to only 25% today.
Christophe Schmitt, Executive Vice President of Faurecia Clean Mobility stated "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. 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."
Hug Engineering is the market leader in Europe and one of the largest players worldwide. It develops and offers its customers complete systems including manufacturing and assembly. Its key technologies are diesel particulate filters, selective catalytic reduction of NOx and catalytic oxidation. The company has around 50 million euros of sales and employs 230 people worldwide in five countries.
The closing of this transaction, subject to regulatory approval in some European jurisdictions, is expected to occur during the first quarter of 2018.
Founded in 1997, Faurecia has grown to become a leading player in the global automotive industry. With 330 sites including 30 R&D centers in 34 countries, Faurecia is now a global leader in its three areas of business: automotive seating, interior systems and clean mobility. It supplies automakers with state-of-the-art technology to promote Smart Life on Board and Sustainable Mobility. In 2016, the Group posted total sales of €18.7 billion and had a workforce of 100,000 people. Faurecia is listed on the NYSE Euronext Paris stock exchange. For more information, visit: www.faurecia.com