Group structure of ElringKlinger AG
As at January 10, 2017, in addition to the parent company, the ElringKlinger Group included 41 fully consolidated subsidiaries (including a Joint venture with a total of five companies). For a complete overview, refer to the Summary of Shareholdings.
|Name of company||Domicile||Capital share in %|
|Gedächtnisstiftung KARL MÜLLER BELEGSCHAFTSHILFE GmbH Dettingen/Erms||Dettingen/Erms||100.00|
|Elring Klinger Motortechnik GmbH||Idstein||92.86|
|ElringKlinger Logistic Service GmbH||Rottenburg/Neckar||96.00|
|new enerday GmbH||Neubrandenburg||80.00|
|KOCHWERK Catering GmbH||Dettingen/Erms||100.00|
|ElringKlinger Kunststofftechnik GmbH||Bietigheim-Bissingen||77.50|
|ElringKlinger Engineered Plastics (Qingdao) Commercial Co., Ltd.||Qingdao (China)||100.00|
|ElringKlinger Engineered Plastics North America, Inc.||Buford (USA)||100.00|
|Elring Klinger, S.A.U.||Reus (Spain)||100.00|
|Elring Klinger (Great Britain) Ltd.||Redcar (UK)||100.00|
|Elring Parts Ltd.||Gateshead (UK)||100.00|
|Technik-Park Heliport Kft.||Kecskemét-Kádafalva (Hungary)||100.00|
|ElringKlinger Hungary Kft.||Kecskemét-Kádafalva (Hungary)||100.00|
|ElringKlinger Italia Srl||Settimo Torinese (Italy)||100.00|
|ElringKlinger Abschirmtechnik (Schweiz) AG||Sevelen (Switzerland)||100.00|
|Hug Engineering AG||Elsau (Switzerland)||93.67|
|Hug Engineering GmbH||Magdeburg||100.00|
|Hug Engineering Inc.||Buford (USA)||100.00|
|Hug Engineering S.p.A.||Mailand (Italy)||100.00|
|Hug Engineering B.V.||Enschede (Netherlands)||90.00|
|ElringKlinger TR Otomotiv Sanayi ve Ticaret A.Ş.||Bursa (Turkey)||100.00|
|ElringKlinger Meillor SAS||Nantiat (France)||100.00|
|HURO Supermold S.R.L.||Timisoara (Romania)||100.00|
|ElringKlinger Canada, Inc.||Leamington (Canada)||100.00|
|Elring Klinger do Brasil Ltda.||Piracicaba (Brazil)||100.00|
|Elring Klinger México, S.A. de C.V.||Toluca (Mexico)||100.00|
|EKASER, S.A. de C.V.||Toluca (Mexico)||100.00|
|ElringKlinger USA, Inc.||Buford (USA)||100.00|
|ElringKlinger Automotive Manufacturing, Inc.||Warren (USA)||100.00|
|ElringKlinger Silicon Valley, Inc.||Fremont (USA)||100.00|
|ElringKlinger South Africa (Pty) Ltd.||Johannesburg (South Africa)||100.00|
|ElringKlinger Automotive Components (India) Pvt. Ltd.||Ranjangaon (India)||100.00|
|ElringKlinger Korea Co., Ltd.||Gumi (South Korea)||100.00|
|Changchun ElringKlinger Ltd.||Changchun (China)||88.00|
|ElringKlinger China, Ltd.||Suzhou (China)||100.00|
|ElringKlinger Marusan Corporation||Tokyo (Japan)||50.00|
|Taiyo Jushi Kakoh Co., Ltd.||Tokyo (Japan)||100.00|
|Marusan Kogyo Co., Ltd.||Tokyo (Japan)||46.9*|
|PT. ElringKlinger Indonesia||Karawang (Indonesia)||100.00|
|ElringKlinger (Thailand) Co., Ltd.||Bangkok (Thailand)||100.00|
* 52,9% Voting rights
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The Group’s operating business is divided into five segments, as outlined below:
The Original Equipment segment develops, produces and sells parts and assemblies for vehicle engines, transmission units and exhaust systems as well as components for lithium-ion batteries and fuel cells. The client base includes nearly all the world’s vehicle and engine manufacturers. The Swiss subsidiary Hug Engineering AG, Elsau, which forms part of the Original Equipment segment, develops and manufactures complete exhaust gas purification systems, predominantly for applications in trucks, buses, ships, construction and agricultural machinery and power stations.
In the Aftermarket segment, ElringKlinger supplies a range of spare parts consisting mainly of cylinder-head gaskets and complete gasket sets. These are marketed under the “Elring – Das Original” brand. Supplied in OEM quality, the parts are used primarily for repairs to engines, gearboxes and exhaust systems. The Group’s Aftermarket products are primarily sold in Western and Eastern Europe, the Middle East and North Africa. ElringKlinger is currently expanding its activities in North America and China. Additionally, this segment is in the process of extending its product portfolio within the French and Italian market for spare parts. Business within the Aftermarket segment is transacted primarily through a network of wholesalers and major group purchasing organizations.
The Engineered Plastics segment encompasses the subsidiary ElringKlinger Kunststofftechnik GmbH, Bietigheim-Bissingen/Germany, together with its subsidiaries, including Polytetra GmbH, Mönchengladbach/Germany, a company acquired in 2014. This segment develops, manufactures and sells products made of the high-performance plastic PTFE. Almost half of the Group’s revenue from this segment is generated outside the automotive industry. Within Europe, ElringKlinger Kunststofftechnik has emerged as one of the leading suppliers of products for PTFE applications. China and the United States are served by local sales companies. The ElringKlinger manufacturing plants in these markets operate production lines for PTFE products.
The Services segment is made up of Elring Klinger Motortechnik GmbH, Idstein/Germany, as well as ElringKlinger Logistic Service GmbH, Ergenzingen/Germany, and KOCHWERK Catering GmbH, Dettingen/Erms/Germany. Elring Klinger Motortechnik GmbH provides development services for engines, transmissions and the exhaust tract using cutting-edge testing and measurement facilities. The segment’s customer base includes both vehicle manufacturers and automotive suppliers. As a result, ElringKlinger has established close links with its customers’ development units. ElringKlinger Logistic Service GmbH provides logistics services for the Aftermarket segment and for external customers. KOCHWERK Catering GmbH operates the restaurant at the principal site at Dettingen/Erms/Germany and provides catering services for external customers.
The Industrial Parks segment encompasses the Group’s industrial parks in Idstein near Frankfurt/Germany, and in Kecskemét/Hungary. The purpose of the business is to lease and administer buildings.
ELRINGKLINGER GROUP SEGMENTS
|Segment||Proportion of revenue||Main customer groups|
|Original Equipment||83.3%||Car, truck and engine manufacturers, automotive suppliers|
|Aftermarket||9.4%||Independent aftermarket business|
|Engineered Plastics||6.4%||Vehicle industry, mechanical engineering, medical technology|
|Services||0.6%||Vehicle manufacturers and suppliers|
|Industrial Parks||0.3%||Unspecified industries|
SALES REVENUE BY SEGMENT IN 2015
(prior year) in € million
|Segment||Proportion of revenue|
|Original Equipment||1,255.8 (1,089.7)|
|Engineered Plastics||96.6 (92.9)|
|Industrial Parks||4.3 (4.5)|
The segments are divided into a total of eleven divisions. Seven of these belong to the Original Equipment segment, which at roughly 80% contributes the largest share of total Group revenue. Each of the four remaining segments (Aftermarket, Engineered Plastics, Services and Industrial Parks) also constitutes a separate division.
ElringKlinger is the world’s leading supplier of cylinder-head gaskets. The market is characterized by an oligopoly. ElringKlinger’s two main competitors are US conglomerates that do not actually specialize in gasket solutions. Some of the local markets include smaller, regional competitors.
The Specialty Gaskets division focuses mainly on metal flat gaskets for high-temperature applications relating to engines, turbochargers, transmissions and exhaust systems. The competitive situation is very similar to that of the Cylinder-head Gaskets division. ElringKlinger is a leading player in the field of metal specialty gaskets and is ranked as one of the three largest suppliers worldwide. The Specialty Gaskets division has benefited from ever-higher demands on sealing technology and a growing number of potential applications.
The Shielding Technology division specializes in combined thermal and acoustic shielding solutions. ElringKlinger is one of the few suppliers in the world to offer complete shielding packages for both the engine as well as the underbody and the exhaust tract. Of all the Group’s divisions, Shielding Technology accounts for the biggest share of total Group sales. Here, too, ElringKlinger is one of the world’s top three suppliers. The Shielding Technology division also benefits from structural growth, since the number of shielding components required in each vehicle is set to rise over the coming years. The market is more differentiated than in the area of gaskets/seals. ElringKlinger’s main competitor is a US company.
Plastic Housing Modules/Elastomer Technology
The Plastic Housing Modules/Elastomer Technology division develops and manufactures lightweight components made of polyamide plastics and fiber-reinforced organo sheets, e.g. cam covers and oil suction pipe modules. The market is experiencing steady growth in the range of potential applications for plastics used in vehicles. Additionally, the truck industry, too, is seeing an ever-growing trend towards the use of lightweight plastic components to replace heavy metal parts. Other key products for this division include high-performance metal-elastomer gaskets for commercial vehicles. The market is more fragmented than in the case of other divisions.
The E-Mobility division focuses on cell contact systems for lithium-ion batteries, which are used in both pure electric and hybrid vehicles. The company’s customer base in this specific area of business also includes two of Germany’s premium car manufacturers. Growth within this division is heavily dependent on demand for electric vehicles. Cell contact systems are available only from a small group of suppliers.
Exhaust Gas Purification
The Exhaust Gas Purification division includes the Hug Group and the production plant in Thale/Germany. Hug is one of the leading suppliers of exhaust gas purification systems for stationary engines and non-road applications, such as construction machinery, locomotives, ships and power plants. The division has established itself as the market leader in the Californian retrofit segment for diesel particulate filters fitted to trucks in excess of 6.34 metric tons.
Tooling Technology is one of the Group’s core fields of expertise. Accordingly, ElringKlinger has established a dedicated division for these operations. This division encompasses internal tool manufacturing at the site in Dettingen/Erms/Germany as well as specialist plastic injection molding processes performed by Hummel-Formen, Lenningen/Germany. The majority of services provided by this division are attributable to entities within the Group.
New Business Areas
In general, new activities are transferred to dedicated divisions only once they generate their first contribution to revenue at series production level. Until that point, they are pooled under the heading New Business Areas. At present, this category mainly includes ongoing projects relating to fuel cell technology.
SALES REVENUE BY DIVISION IN 2015
(prior year) in %
|Shielding Technology||27 (26)|
|Plastic Housing Modules/
|Speciality Gaskets||17 (16)|
|Cylinder-Head Gaskets||14 (14)|
|Engineered Plastics||6 (7)|
|Exhaust Gas Purification||3 (5)|
|Industrial Parks||<1 (<1)|
1 Tooling Technology and New Business Areas
GROUP SALES BY REGION IN 2015
(prior year) in %
|Rest of Europe||31.2 (32.7)|
|South America and Rest of World||3.9 (4.4)|