Freudenberg to grow rail activities, withdraw from gasket unit

ERJ staff report (DS)

Weinheim, Germany -- Freudenberg Group has said it is talking to seal manufacturer ElringKlinger AG over the potential sale of its OEM business in cylinder head and exhaust gaskets for the automotive industry. "ElringKlinger is a potential strategic buyer who intends to systematically grow the cylinder head and exhaust gasket business," Claus Möhlenkamp, Chairman of the Management Board of Freudenberg Seals and Vibration Control Technology, commented.

The announcement is part of a wider restructuring in which Freudenberg aims to sell the OEM and the vendor-specific replacement businesses for cylinder head and exhaust gaskets. The independent aftermarket activities of Corteco will be continued and expanded. Meanwhile, freudenberg also intends to buy all the shares in its long-standing joint venture partner Schwab Holding AG which is active in rail vehicles.

Freudenberg produces cylinder head and exhaust gaskets with a workforce of 370 employees in Eurasburg and Geretsried-Gelting (Germany), Chamboret and Nantiat (France) as well as Settimo (Italy). The company wants to be active globally in all its sealing activities, so the Europe-biased cylinder head and exhaust gasket business is to be disinvested.

Rail vehicle activities are to be strengthened. Freudenberg Seals and Vibration Control Technology will be acquiring all the shares in Schwab Schwingungstechnik (present shareholding: 20 percent) and Freudenberg Schwab GmbH (present shareholding: 51 percent) no later than August. Going forward, these companies will jointly be known as Freudenberg Schwab and will offer customers complete vibration engineering solutions. It is planned to press ahead with activities such as the development and manufacture of air spring systems. In addition, a subsidiary is to be established in China with a view to intensifying the cultivation of this fast-growing market.

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Press release from Freudenberg