Inergy Automotive Systems Business Report up until FY ended Dec. 31, 2011
Business Overview-In 2011, the Company delivered 14.1 million fuel systems, with sales of 1,500 million Euros (1,200 million euros in FY2010). One in every five light vehicles produced in the world is equipped by the Company.
-In 2010, the Company delivered 11.9 million plastic fuel systems, with sales of 1,200 million Euros (900 million euros in FY2009). One in every six light vehicles produced in the world is equipped by the Company.
-In 2010, the Company became a subsidiary of Plastic Omnium of France.
Acquisition-In 2011, the Company has signed agreements to acquire the plastic fuel system/fuel tank manufacturing assets of Ford Motor Company's Automotive Components Holdings LLC (ACH) affiliate in Milan, Michigan, U.S. The business produces 1.3 million fuel systems annually. The change of ownership will be effective as from 1 June 2011. This acquisition strengthens Inergy Automotive Systems' production base in North America, which already includes plants in Adrian (Michigan), Anderson (South Carolina) and Ramos (Mexico). They mainly supply General Motors, Hyundai, Nissan and Chrysler. A new facility will be constructed in Michigan to which current production at the ACH Milan plant will be transferred with an anticipated completion date during 2013. With this acquisition, Inergy Automotive Systems estimates output of more than 15 million fuel systems in 2012. (From a press release on May 19, 2011).
-In 2011, the Company and a Russia-based automotive parts manufacturer Detalstroykonstruktsiya Pf Ooo have signed an agreement to create a joint venture in Russia. The new company will be a producer of plastic fuel systems in the local Russian market and will be 51% owned by Inergy. It will include the manufacturing assets of Inergy, which already has industrial operations in Stavrovo, and those of its Russian partner, in Togliatti. The company will supply fuel systems for Avtovaz in Togliatti, Ford in Saint Petersburg and Avtoframos in Moscow, as well as for future Nissan and Renault models to be produced in Russia. (From a press release on October 18, 2011)
-In 2011, the Company has announced the creation of a joint company in China with Beijing Hainachuan Automotive Parts Co Ltd (BHAP), a subsidiary of Beijing Automotive Industry Co (BAIC). The new company will be owned 40% by BHAP and 60% by Plastic Omnium Auto Inergy, which will contribute its Beijing production plant, where fuel systems for Hyundai are already being produced. The company has 12 plants in China for its two automotive businesses – exterior components and composites and fuel systems. (From a press release on July 11, 2011)
Contracts-In 2011, the Company supplied Audi with approximately 36,000 SCR systems. Other orders for the system have been received from GM and Chrysler.
Business Restructuring-At 31 December 2010, the Company's Blenheim plant is classified as held for sale.
R&D Expense-The Company's research budget represents approximately 1% of the Company's sales.
R&D Structure-The Company has 5 Research and Development Centers and 6 technical antennas in the main regions of the world.
Product DevelopmentEffort to reduce hydrocarbon emissions
-The Company has stepped up its effort to reduce hydrocarbon emissions - in particular nitrous oxide and carbon dioxide - with its Twin Sheet Blow Molding technology (TSBM) and Selective Catalytic Reduction (SCR) solutions.
- TSBM: This technology helps reduce hydrocarbon emissions by integrating a large number of components into the fuel tank during the blow molding stage instead of welding them once the tank has been manufactured.
- DINOx Premium: The second generation (DINOx Premium) SCR system eliminates 95% of a diesel vehicle's NOx emissions and up to 8% of its CO2 emissions. Optimized in terms of size and performance, the system meets future emissions and fuel consumption standards, including the EURO VI standard scheduled to take effect in Europe beginning in 2014.
-During a vehicle's lifetime, it emits an average of 50 liters of gasoline vapor into the atmosphere when it is being refueled. To remedy this problem, the Company has developed a capless refueling system, marketed as INERFILL in North America and CLINFILL in Europe. Fitting this solution on all gasoline-powered vehicles currently in operation worldwide would save at least 600 million liters of fuel a year, with a corresponding reduction in air pollution.
Investment Outside France<Brazil>
-In 2011, the Company has begun building a plant in Sorocaba that will supply fuel systems for Toyota.
-In 2011, the Company opened Tangiers plant. From its plant, the Company will supply fuel systems to Renault-Dacia for vehicles produced in the carmaker's new Moroccan plant.
-In 2010, the Company set a plant in Beijing.
-In January 2005, State Development Investment Corporation (SDIC) of the People's Republic of China and the Company announced that they have signed a Memorandum of Understanding whereby Inergy would acquire a majority stake in Yangzhou Yapp Automotive Plastic Parts Company Limited. The transaction is subject to a number of conditions and scheduled to be completed in 2005, pending relevant government approvals. With a turnover of some 50 million euro in 2004, Yapp is China's leading plastic fuel systems manufacturer, with production sites in Yangzhou, Shanghai and Tangshan, which are appropriately located to supply major international car manufacturers operating in China. State Development Investment Corporation is the largest state-owned investment holding company of the People's Republic of China with diversified interests. SDIC is the controlling shareholder of Yangzhou Yapp Automotive Plastic Parts Company Limited.
-The Company signed a partnership agreement with Suzuki-Maruti on 12 January 2010. As part of this joint venture, in which Inergy holds a majority stake, a new plant is being built to initially manufacture fuel tanks for the Swift, beginning in 2011.
-In India, the Company began construction of a plant, located between Madras and Bangalore and began producing the fuel system for a low-cost Toyota vehicle at the plant in second-half 2010
-In Russia, a plant was built in Stavrovo to manufacture the fuel system for the Renault "Logan", with production launched in early 2009.
-In September 2004, the Company announced it will expand its U.S. plant in Anderson, South Carolina, USA, to make parts for a new BMW AG model in 2007. The Company's Anderson facility makes the fuel tank for the current "X5" and produces other exterior parts for BMW.
-In April 2003, the Company announced it will increase production capacity at its Anderson, S.C. manufacturing facility by 20 percent to meet increasing demand.