Freudenberg invests in technology of the future

Weinheim, October 9, 2012. Freudenberg Sealing Technologies, a Freudenberg Business Group, is acquiring 50 percent of the shares of the Schneegans group. The company, which will be renamed Schneegans Freudenberg GmbH, has production facilities in Emmerich, Germany, and Losenstein, Austria. The Schneegans group has a total workforce of approximately 240 and generated sales of roughly €45 million in 2011. With the joint venture, Freudenberg is making a strategic investment in the new know-how of multi-component injection molding production technology and in forward-looking plastic products, particularly for the automotive industry. Approval from the anti-trust authorities in Germany and Austria is expected for the end of October.

The multi-component injection molding production method developed by Schneegans GmbH enables the manufacture of sophisticated thermoplastic seal components, such as components for automotive engine compartments, in only a few processing steps. Moreover, these plastic products support carmakers in their efforts to reduce vehicle weight and thus lower CO2 emissions. Plastic replaces metal, and multi-component injection molding means the seal is integrated direct in the housing. As a result, the customer saves one processing step during assembly. Furthermore, hardly any waste is generated by this production process which in turn has a positive effect on a company's eco-balance. "With Schneegans we have found an innovative partner with specialized material know-how that offers forward-looking products - in particular for the automotive industry", Dr. Mohsen Sohi, Management Board Speaker of the Freudenberg Group, commented. "In addition, this production technology expands our know-how."

As part of the Freudenberg network, Schneegans Freudenberg GmbH has access to further markets and innovations. "The joint venture benefits ideally from the competence of the partners and can expand its market position in the automotive sector in particular", Claus Möhlenkamp, Speaker of the Management Board of Freudenberg Sealing Technologies, said. "This is enhanced by a similar mindset on the part of both partners with regard to customer orientation, quality and entrepreneurial responsibility."

The joint venture's product range not only includes housing covers with integrated seals for water pumps and automatic transmissions, but also oil dipsticks with all sealing functions and a large selection of functional components which are integrated in the seal using the multi-component injection molding process. Schneegans Freudenberg will mainly produce parts for the automotive industry, but will also manufacture products for industrial applications and for the photovoltaic market. In addition, the joint venture is to develop and manufacture high volume sealing elements for the agricultural industry. "We will jointly harness further markets going forward, and our new and innovative products will play a role in the success of our international customers", Claus Möhlenkamp stated.