1. Home
2. Supplier Database
3. Major Suppliers
4. Eberspaecher Gruppe GmbH & Co. KG
5. Eberspaecher Gruppe GmbH & Co. KG Business Report FY ended Dec. 2018

Eberspaecher Gruppe GmbH & Co. KG Business Report FY ended Dec. 2018

Factors
1) Net Sales
-The Company’s sales for the fiscal year ended December 31, 2018 increased by 2.9% from the previous year to EUR 4,610.4 million. The increase in sales was primarily due to an increase in sales in the Exhaust Technology Division, specifically in the U.S. The Company’s locations in China and Romania also had increased sales during the fiscal year. These gains were partially offset by decreased sales in France.

2) Exhaust Technology division
-The Company’s Exhaust Technology division had sales of EUR 4,064.3 million in the fiscal year ended December 31, 2018, an increase of 3.4% from the previous year. The increase in sales was primarily due to increased sale volumes in North America and China. Sales of diesel products in the division decreased, due to customer reluctance and uncertainty.

3) Climate Control Systems division
-Sales in the Climate Control Systems Division in the fiscal year ended December 31, 2018 decreased by 0.7% from the previous year to EUR 491.9 million. Sales from the division’s Special Markets Business Unit and the Bus & Coach business unit increased compared to the previous year, highlighting increased demand in larger and specialty vehicles. In contrast, sales from the Fuel Operated Heaters and Electrical Heaters business units decreased.

4) Automotive Controls division
-The Automotive Controls Division had sales of EUR 54.1 million in the fiscal year ended December 31, 2018, a decrease of 0.9% from the previous year. The decrease in sales was due to the postponement of two project start-ups for a major customer to 2019, as well as slow market development in the Company’s Automotive Battery Management Business Unit.

Acquisition

-Eberspaecher signed a contract to acquire 100 percent of the shares in French company Kalori SAS. The climate control specialist based in Lyon, France, develops and produces air-conditioning and ventilation systems for commercial and special vehicles. With a staff of some 150, Kalori generated sales of just under EUR 22 million in 2017/2018.  Eberspaecher will be able to scale up Kalori's experience in the development, application and production of air-conditioning and ventilation systems based on its global reach. The focus in developing new markets will be on the NAFTA region and South America. A second phase will target growth in the Asia-Pacific region. Over 100 people are engaged in sales, research and development, production and administration at the new Eberspaecher Group subsidiary's location in Lyon. A further 50 people work at the company's production plant in Zhongshan, China. (From a press release on November 6, 2018)

-The Company has acquired a share of PACE Telematics, through which it aims to expand cloud-based mobility services for their products. The Company holds more than a 20% share of the PACE Telematics. In future, PACE cloud-based mobility solutions will enable networking between Company products as well as with other vehicle functions. PACE was founded in 2015 and has over 30 employees. Since 2016, PACE has offered a cloud-based, certified connected car retrofit solution for motorists. (From a press release on July 5, 2018)

Joint Ventures

-In March 2018, the Company and Sharda Motor signed a memorandum of understanding for the establishment of a joint venture. The joint venture would manufacture exhaust-gas aftertreatment systems that would comply with the Baharat Stage VI standard for commercial vehicles in India, corresponding with the Euro 6 standard in Europe.

-Eberspaecher Exhaust Technology International GmbH and China Yuchai International Limited announced the signing of a contract to form a joint venture company – Eberspaecher Yuchai Exhaust Technology Co. Ltd. The JV Company will produce and sell exhaust emission control systems for Chinese commercial vehicles to meet the most stringent domestic emission standard, China National 6. Eberspaecher will hold 51 percent shareholding interest. A new production facility will be built at Guangxi Yuchai Machinery Co. Ltd. current engine production facilities in Yulin City, China. Over an area of up to 12,000 square meters, the first exhaust control systems will be produced at the end of 2019. In the first full year of production, 160,000 systems are planned. In the long term, the JV Company is expected to create up to 250 local jobs. This cooperation also makes use of Eberspaecher's expanded development activities at its Asian headquarters in Shanghai. (From a press release on August 28, 2018)

Recent Developments

-In 2018, the Company began production for two different Airtronic air heaters across two production lines.

-In 2018, the Company significantly increased production volumes for two plants in its Exhaust Technology Division in Tondela, Portugal and Oradea, Romania. The Oradea plant primarily produces pipes for the European passenger car market, while the Tondela plant produces hot-end and cold-end exhaust emission control components for OEMs in Spain, Portgual and Morocco.
　

Outlook

-The Company expects that its net sales for the fiscal year ending December 31, 2019 will increase slightly over the previous year.

-The Company aims to invest an average of 7% of its net revenue each year in research and development.
　　

R&D Structure

-The Company has approximately 900 employees working in research and development across its various divisions.

R&D Facilities

-The Company has research and development facilities in the following locations:

• Esslingen (Germany)
• Hermsdorf (Germany)
• Herxheim (Germany)
• Renningen (Germany)
• Landau (Germany)
• Concord (Canada)
• Novi (US)
• Shanghai (China)

R&D Activities

-In 2019, the Company’s R&D activities focused on the following products and projects:
Exhaust Technology Division

• Gasoline particulate filter systems and near-engine diesel particulate filter systems with selective catalytic reduction
• Modular exhaust valves which can improve muffling and exhaust-emission conversion
• Modern exhaust-gas aftertreatment systems specifically for the Chinese and Indian markets.

Climate Control Systems Division

• Airtronic 2 air heater for passenger cars and light commercial vehicles
• Small water heaters for passenger cars and light commercial vehicles
• Hydronic S3 InCat water heater with integrated catalytic converter
• The creation of a team that will develop a group-wide digital connectivity platform and services in 2019
• High-voltage coolant heaters
• PTC ceramics for use in high-voltage and low-voltage products
• Roof-mounted air conditioning systems for buses and coaches
• Electrical air conditioning systems and heat pumps

Automotive Controls Division

• Secure switches for use in autonomous vehicles
• Electronic platform for future air and water heaters

Product Development

Electrically operated acoustic valves for passenger cars
-The Company’s Exhaust Technology Division has developed a new generation of electrically operated acoustic valves for passenger cars. Due to a maximum acoustic tightness and a continuously adjustable valve plate, the valve ensures lower noise levels and a pleasant vehicle sound. The lightweight valve also efficiently reduces the muffler volume and exhaust back pressure. In-house production will begin in 2020. Compared to its predecessor, the new valve features maximum acoustic tightness and a valve plate that can be continuously adjusted between 0 and 90 degrees. The 530-gram valve is particularly lightweight and designed for exhaust gas temperatures of 800 degrees Celsius and at least three million switching operations. (From a press release on December 12, 2018)

Thermal management expertise for Rinspeed’s microSNAP
-The Company has provided its thermal management expertise for Rinspeed’s microSNAP autonomous vehicle concept. Due to the thermal solutions, the microSNAP can be used both flexibly and conveniently. In all applications, the energy supply originates from an independent Energy Storage System. This auxiliary battery ensures that the vehicle’s range is not negatively affected by the additional components. The Company’s systems operate autonomously depending on application and desired temperature. This is achieved by combining space-saving split air-conditioning and an electric air heater. The Power Pod contains a lithium-iron-phosphate battery from the Company with an output of 480 V / 144 Ah. It generates a maximum of 69 kWh, enabling an enhancement in electric range or an increase in the number of electrical equipment operated. (From a press release on December 10, 2018)

Concept for an open platform
-The Company will present the concept for an open platform, which will be demonstrated using a test vehicle that networks on-board components and makes them operable via an app, at the IAA Commercial Vehicles 2018. It is also planned to integrate further elements, including from third-party suppliers, into the new platform in the future. The Company’s goal is to integrate existing connectivity solutions from other manufacturers into the open platform without having to develop new applications or make significant modifications. The open structure is intended to facilitate the integration of components and save time for body manufacturers and OEMs. (From a press release on September 4, 2018)

Third generation of the hydronic water heater
-The Company’s third generation of the hydronic water heater provides even more efficient heating performance in a compact design. With their wide range of outputs from 1.3 to 5 kW, the Hydronic S3 Economy and the Hydronic S3 Commercial featuring the 5.6 kW power variant are suitable for many vehicles, from cars to heavy-duty trucks. The water heater is compatible with the new CAN bus-capable operating elements. Available from fall, the new EasyStart Web version switches the heater on even faster than before. The heater's compact size means it can be flexibly installed even in vehicles where space is tight. The Company supplies vehicle-specific kits for quick installation in cars, saving time and facilitating work. (From a press release on August 8, 2018)

Second-generation fuel-operated Airtronic 2
-The second-generation fuel-operated Airtronic 2 is an update to the Company’s successful family of air heaters. The compact Airtronic S2 Commercial for trucks, the Airtronic M2 Commercial for ambulances, or the Recreational variant for RVs all feature a long service life and quiet operations. Its brushless motor enables a long service life of over 5,000 hours. EasyStart operating elements make controlling the pre-heater simple and convenient, while the new built-in EasyStart Pro operating element is intuitive to control. Through the timer function, the desired start time and heating duration can be preset. The integrated temperature sensor enables the temperature to be regulated as desired. (From a press release on July 31, 2018)

Latest technologies in emission control systems
-The Company will present the latest technologies in emission control systems at the IAA Commercial Vehicles in Hanover. One innovation for inline systems is the tunnel mixer, which can be scaled to any diameter. It ensures optimum treatment of the urea-water solution in a confined space and thus efficiently reduces pollutants. With oval canning for commercial vehicles, the Company has developed a concept for optimizing the degree of space utilization. In the future, other shapes, such as a rounded rectangle, will also be possible. In order to save weight and size of the emission control system, the Company has developed a compact solution - the ultra-efficient 1Box. It combines a diesel oxidation catalytic converter, diesel particulate filter and SCR system in a single system. The 1Box is up to 40% lighter than conventional emission control systems. (From a press release on July 25, 2018)

Intelligent, environmentally friendly solutions for the complete thermal management in buses
-Eberspaecher Suetrak, a subsidiary of the Company, informed that it will be presenting intelligent, environmentally friendly solutions for the complete thermal management in buses of all drive types at the IAA Commercial Vehicles 2018. With the AC250 platform, the Company’s bus specialists have developed an air-conditioning system for city buses and touring coaches which is designed to run on both existing refrigerants and CO2 in the future. The AC353G5 is an air-conditioning system which delivers comfortable passenger compartment temperatures in any climate zone. The AC403E ensures an optimum climate at the driver's seat through an electrically powered compressor in the roof-mounted air-conditioning system, which constantly cools the driver's seat. Eberspaecher Suetrak has also developed the state-of-the-art E-Control platform, which controls the complete thermal management in buses from a central point. (From a press release on July 19, 2018)

Latest solutions for battery management systems (BMS)
-The Company’s subsidiary, Eberspaecher Vecture, will present the latest solutions for battery management systems (BMS) at the Battery Show Europe in Hanover, Germany. Featured products will include battery modules and their new controllers from the scalable μC BMS family. The battery management systems monitor and control between 4 and 22 cells as required. Depending on the controller chosen from the product family, communications between batteries and the BMS run via CAN, I/O interfaces, or wirelessly via Bluetooth LE. Eberspaecher Vecture will also be presenting its new 7 kWh battery module, which is scalable from 12 to 48 V. (From a press release on April 4, 2018)

New solid state plug-in power mini relay
-The Company has developed a new solid state plug-in power mini relay (12V/100A), a reliable component for controlling and switching electric loads in automotive or industrial applications. The compact high-power solid state plug-in relay features low control power, short response times, is silent and non-wearing in operation. A further advantage it offers over electromechanical relays is its long service life of several million switching cycles. Robust in construction, the plug-in relay meets the high electrical and mechanical demands of the automotive industry. Its fields of application are diverse: including in on-board subsystems, electrically heated catalytic converters, fan motors, and vacuum pumps. (From a press release on March 22, 2018)

Tunnel mixers for exhaust-emission conversion
-The Company announced series production of tunnel mixers for exhaust-emission conversion in passenger cars and commercial vehicles. The mixer, for which a patent is pending, will be produced for the first time beginning in May for a leading European passenger car manufacturer. Further customer orders will follow next year. The tunnel mixer enables pollutants to be minimized with maximum efficiency. Due to the improved design of the two deep-drawn molded parts, the mixer ensures optimum evaporation and mixing of the aqueous urea solution with the exhaust gas. (From a press release on March 19, 2018)

-In the fiscal year ended December 31, 2018, the Company invested EUR 84.7 million in property, plant and equipment. The investment was distributed across the Company’s three business divisions as follows:

• EUR 54.7 million was invested in the Exhaust Technology Division, primarily for the expansion of production capacity at various locations.
• EUR 27.5 million was invested in the Climate Control Systems Division, for the expansion of production capacities and for the division’s new production facility in Hermsdorf, Germany.
• EUR 2.1 million was invested in the Automotive Controls Division and the Company’s central service units.

-The Company expects its investment in the fiscal year ending December 31, 2019 to increase compared to 2018 due to the construction of new production facilities in China.
　

Investment in Germany

-The Company held a symbolic groundbreaking ceremony to mark the start of construction work on the new development building and production plant of in Hermsdorf, Germany. A production plant for PTC ceramics is due to be completed by the fall of 2018 on a site covering approximately three hectares in the Hermsdorf Ost I industrial estate. The Company plans to add up to 150 employees and begin operations in November 2018. (From a press release on March 2, 2018)

Investment outside Germany

<Portugal, Romania>
-In 2018, the Company significantly increased production volumes for two plants in its Exhaust Technology Division in Tondela, Portugal and Oradea, Romania. The Oradea plant primarily produces pipes for the European passenger car market, while the Tondela plant produces hot-end and cold-end exhaust emission control components for OEMs in Spain, Portgual and Morocco.

<Slovakia>
-In the fall of 2018, the Company’s new production facility in Nitra, Slovak Republic started production. The Nitra plant conducts the final assembly of exhaust systems, including hot-end and cold-end exhaust-emission control systems.

<China>
-The Company has opened a new production plant for electrical heaters in Tianjin. It will focus on manufacturing high-voltage heaters for battery electric and hybrid vehicles. The plant will serve the rapidly growing Chinese passenger car market. With an area of 5,200 square meters, the plant primarily manufactures electrical high-voltage coolant heaters and low-voltage air heaters for passenger cars. In addition, the plant will manufacture fuel operated vehicle heaters for passenger cars, commercial vehicles and special-purpose vehicles such as RVs and ambulances. In the future, the plant will operate in the production network with the German sites in Herxheim and Hermsdorf, which is currently undergoing an expansion program. (From a press release on April 10, 2018)