Faurecia has entered into an agreement for the acquisition of 100 percent 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 (approximately $2.9 billion USD) in 2025, as regulations come into force which will cover more than 75 percent of the market as compared to only 25 percent 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 one of the largest players worldwide, according to Faurecia. 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 (approximately $59 million USD) 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.
