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5. HUTCHINSON S.A. Business Report FY ended Dec. 2019

HUTCHINSON S.A. Business Report FY ended Dec. 2019

Acquisitions

-The Company has acquired Mide Technology Corporation. Mide is an advanced engineering company based in Woburn, Massachusetts, specializing in smart material technology and mechatronics, and serves a wide range of markets, including the automotive and aerospace industries. This transaction will significantly expand the Company’s materials science and system capabilities, enabling the Company to better position itself to address emerging trends and enlarge its portfolio. (From a press release on July 23, 2019)

-The Company reached an agreement to acquire Mide Technology Corporation, an engineering company specializing in smart material technology and mechatronics. Mide, based in Medford, MA, U.S., employs approximately 50 people will enhance and accelerate the Company’s expertise in high value content solutions. The acquisition is subject to clearance from relevant authorities in the U.S. (From a press release on January 8, 2019)

Joint Ventures

-The Company has taken a majority share in the joint venture TCSA (Thermal Control Systems Automotive) created with MANN+HUMMEL. It is integrated in the Company’s Fluid Management Systems segment. The joint venture is dedicated to thermal management and cooling systems for vehicles, particularly EV and HEV. TCSA is based in Laval, France and employs approximately 60 people. The joint venture offers a complete range of active valves to manage the circulation of fluids inside a vehicle. These valves are adaptable to any platform. The technologies in question significantly reduce CO2 emissions. (From a press release on September 6, 2019)

-The Company is creating a new joint venture with Hiroshima Kasei, located in Fukuyama, Japan. The joint venture, named Hiroshima Kasei Hutchinson Sealing Japan (HHSJ) will reinforce the Company’s presence in Japan. The joint venture will focus on sales, development and production management for body sealing products developed for Japanese OEMs. This joint venture will support the ongoing projects by combining both companies’ technology, experience in material, product design and production expertise. (From a press release on July 3, 2019)

Recent Developments

-The Company is modernizing its factories and transforming operator practices. With the help of the Operational Excellence Department, the Company is deploying a digital transformation policy that breaks down into four lines: industry, product, customers, and suppliers and employees. On the sites, digitization enables the Company to optimize processes and render them more robust, whether it is in development, supply-chain or production. Actions are deployed throughout the world and are upheld by the Operational Excellence Department which provides lean principles throughout the organization. To improve solution performance, the Company aims to add sensors or RFID chips in its products. These make it possible in particular to gather accurate data on product lifecycle and reduce maintenance costs. (From a press release on January 14, 2019)

Contracts

-The Company announced that it is going to supply Daimler Trucks with rear engine mounts on a fleet of 100,000 trucks. Three different models will be equipped with these rear engine mounts. The selected parts have several advantages including reduced weight and increased efficiency while still meeting technical criteria. (From a press release on September 11, 2019)

-The Company was chosen by General Motors for the conversion of the accessory belt drive system of its new light trucks platform to elastic belts. The Stretchy Belt, operating without any tensioning system, is now applied for the first time to the main, serpentine belt drive on all of the platform’s proposed V6 and V8 engines, including their flagship 2019 Silverado and Sierra models. Other models will soon benefit from this technology, which provides weight and cost reduction while reducing necessary maintenance.  (From a press release on July 10, 2019)

-The Mazda 3 which launched in 2019 in Japan, China, Thailand and Mexico will be equipped with the Company’s dual compound bush system. Mazda has decided to replace the multi-link rear suspension with a new torsion beam suspension. Thanks to the Company’s technology, Mazda has been able to apply this solution which improves handling and behavior in terms of comfort, reliability and dynamics. The equipment of the future Mazda 3 has thus enabled the manufacturer to find a balance between driving comfort, reliability and vehicle dynamics. (From a press release on June 12, 2019)

-The Company will equip four Honda vehicles after four years of collaboration on various issues. Honda had identified major stumbling blocks for which the Company was able to find and develop appropriate solutions. This research and development phase began in May 2015. The solutions improved the acoustic performance of the fixed window seals and the glass run channels, together with the performance of the outside sealing strips in the presence of condensation. Four Honda and Acura models will be equipped with the Company’s sealing products. These models will launch between 2019 and 2021. (From a press release on March 21, 2019)

Awards

-The Company was rewarded in the "Program Management" category for commitment and the quality of the solutions put forward to meet the expectations of Groupe PSA. The Body Sealing Systems business unit received the award for the excellence of its results. (From a press release on July 25, 2018)
 

-Every year, the Company dedicates approximately 5% of its sales revenue towards research and development.

R&D Facilities

-The Company’s primary Corporate Research and Innovation Center is located in Montargis, France and employs more than 200 engineers and technicians working in research and development.

-In addition to its Corporate Research and Innovation Center, the Company has 27 technical centers worldwide.

-In 2019, the Company set up an advanced engineering team in a research center in Singapore. The center will take advantage of the country’s innovation ecosystem in the fields of smart network management, connected objects and advanced robotics. The research center in Singapore also enables the Company to enhance its connections with the automotive industry in the region.

R&D Activities

-The Company’s research and development activities are focused on weight reduction, increased energy efficiency, improved diagnostic and control functionality, increased acoustic and vibratory comfort, and the integration of connected solutions.

Technological Alliances

-The Company has partnerships with both Centrale Lyon and EMLyon to help improve the design of its products under development.

Product Development

Polyamide Clevis Bracket
-The Society of Plastic Engineers in Tokyo has invited the Company to present their polyamide Clevis Bracket to the Japanese automotive industry. The polyamide Clevis Bracket, which substitutes traditionally used aluminum with a polyamide plastic, is part of a portfolio of sub-structural products dedicated to weight reduction in motor vehicles. These load-taking, light plastic components will be produced for several years in the Company’s plants to address customers’ requirements in North America. (From a press release on April 19, 2019)

SmartDamper system
-The Company’s SmartDamper system enables real-time measurement of the frequency and amplitude of the vibrations induced by the deactivation of cylinders and then generates an equivalent opposing vibration, thus neutralizing the original vibrations. This complete system consists of an electromagnetic actuator, sensors and an electronic computer functioning in a closed loop. It contributes to the reduction of CO2 emissions by favoring the implementation of innovative solutions to reduce fuel consumption and weight. The SmartDamper is designed to dampen the numerous vibrations generated by combustion engines. It meets the most complex vibration requirements, operating simultaneously on several harmonics. This system thus offers vehicle passengers optimum acoustic and vibration comfort conditions, both while driving and idling. (From a press release on March 15, 2019)

Dynamic insulating system
-The Company launched the dynamic insulating system (DIS) to optimize thermal management of both electric and hybrid vehicles. Thanks to the advent of innovative insulation materials, the DIS system creates a thermal barrier between the battery pack and the external environment. In the presence of cold temperatures, the DIS reduces heat transfer outside the pack and enhances battery performance. During heat waves, the DIS lowers the risk of battery overheating and decreases the energy required to feed its active cooling system. (From a press release on February 11, 2019)

Technologies showcased at IZB 2018
-The Company announced that it is attending the Internationale Zuliefererborse (IZB) exhibition in Wolfsburg, Germany. The Company will present fluid management systems, belt-drive systems and sealing technologies. The fair's objective is to promote discussion between manufacturers and experts to encourage the search for weight-saving, energy-efficient, comfort and safety solutions. To create these solutions, the Company is supported by its Research and Innovation Centre (CRI), which develops solutions through composite materials, new thermoplastics and polymers, mechatronics, and thermal and electrical energy storage. (From a press release on October 11, 2018)

Thermoplastic door seal
-The Company announced that it has created a 100% thermoplastic door seal. This new product improves weight by 30 to 50% compared to the generic EPDM solution, recyclability and aesthetics. An initial production order has been placed for a range of premium vehicles by Jaguar Land Rover. (From a press release on July 24, 2018)

Patents

-The Company has a portfolio of approximately 750 active patents, and generates an average of 100 new patents per year.
 

Development Outside France

<China>
-The Company opened its third Fab House, the 822 Fab House in China, at a Company site in Suzhou Industrial Park. All Fab Houses share a common objective to host the Company’s employees, partners, prospects and customers from all over the world for all occasions. The Fab Houses also showcase the Company’s technical and innovative know-how, presenting all of the Company’s main product families. The test machines presented on the ground floor of the 822 Fab House showcase the Company’s test capacities in China, and will include a mock-up of a hybrid car which will present latest on-board technologies in augmented reality. (From a press release on November 20, 2019)

<Poland>
-The Company opened its new Debica site in Poland in July 2017 for body sealing systems. The new 21,000-square-meter facility will be dedicated to the production of static seals for the automotive industry. With the support from the Debica community, this investment enables the Company to improve its footprint to better serve its key customers in Europe. (From a press release on October 11, 2017)