Freudenberg achieves record sales

Freudenberg Press Conference China

- Group in China Continues on Growth Path
- Success with "Green" Innovations

The Freudenberg Group in China achieves a new record in sales and employee numbers. The long-term strategy is the foundation of success in China. Compared to the previous year, sales in China increased by approximately 33 percent or 1.3 billion to 5.412 billion yuan (€663 million). The company increased the number of jobs by 621 to 6,305 (previous year: 5,684). "The contribution of the China region to the overall success of the Freudenberg Group continues to grow. The growth achieved here is partly significantly above that of other regions. In 2013, the share of the China region in group sales grew by about 2 percent," said Hanno D. Wentzler, Regional Representative Asia, today at the press conference in Beijing. "Our products also make valuable contributions to positive development in China, for example in improving the CO2 balance across all industries." Investments in business operations are a vital part of the growth strategy: over the next two years, an additional 50 million yuan (€6 million) will be invested solely in the Freudenberg Filtration Technologies business group. In Qingpu, a new research and development center for specialty lubricants and separation agents will be inaugurated in a few weeks. Over the past ten years, Freudenberg has invested around 2.3 billion yuan (€240 million) in China.

Overall, the internationally active technology company Freudenberg is more successful than ever in its 165th year. In the fiscal year 2013, the technology group achieved a new high in sales for the fourth consecutive time on its previous consolidation basis, with around 54 billion yuan (€6,622.5 million, 2012: €6,321.7 million). This is an increase of about 2.4 billion yuan (€300.8 million), or 4.8 percent. After effects from acquisitions and divestments totaling a net 1.2 billion yuan (€148.1 million) and considering exchange rate effects, sales were 5.4 percent or 2.7 billion yuan (€338.9 million) higher than the previous year. The group’s net income was around 3.3 billion yuan (€401.5 million), based on a significant improvement in operating business compared to the previous year’s 3.5 billion yuan (€432.7 million), which included one-time extraordinary gains. As of December 31, 2013, the Freudenberg Group employed 39,897 people (previous year: 37,453).

"Our business groups in China have developed positively across the board," said Bettina Schoen-Behanzin, Head of the Freudenberg Regional Corporate Center Asia in Shanghai. "Their market position has been further improved, and sales have increased significantly in almost all areas."

CO2 Reduction in the Automotive Industry

Mostly invisible and indispensable – these are the characteristics of Freudenberg products that make a valuable contribution in thousands of everyday applications. An example of this is the Freudenberg LESS (Low Emission Sealing Solutions) program in sealing technology for more environmentally friendly mobility. The technology company has developed product innovations that reduce friction losses in traditional drive technology, optimize the combustion process, support modern downsizing concepts and start-stop systems, and enable weight reductions. Additionally, Freudenberg offers material and sealing solutions for alternative fuels and drive concepts. All these products are summarized under the term LESS.

"Our sealing technology opens up new potentials for the automotive industry in China," said Chen Delin, Business Unit Manager for the automotive sector of the joint venture NOK-Freudenberg Group China (NFGC). "With LESS, we offer our customers comprehensive solutions for all vehicle components that reduce consumption and emissions." Components of the LESS program are produced for Chinese customers in Changchun.

To ensure everything runs smoothly in modern cars, Freudenberg relies on synthetic and environmentally friendly specialty lubricants. From window lifters
to door seals, brake systems, and steering – Freudenberg’s specialty lubricants provide comfort on one hand and are crucial for occupant and vehicle safety on the other. "The demand for high-quality lubricants and separation agents has been rising for years with the growth of key industries in China," said Shu Wang, General Manager Sales and Marketing at Klüber Lubrication. In industrial plants and
manufacturing facilities, specialty lubricants can significantly contribute to better energy efficiency. Compared to conventional mineral oils, Freudenberg’s lubricants can reduce energy requirements, such as for drives, by decreasing friction and thus significantly lower CO2 emissions.

Fight Against Smog

But Freudenberg’s portfolio also includes many other innovative solutions for better quality of life and environmental protection. The Freudenberg product range for cleaner air is extensive: modern air filters for vehicles, homes, workplaces, or industrial filters that drastically reduce emissions in production facilities. "Freudenberg has been delivering innovative filter concepts for over 50 years," explains Leo Xu Jia, Sales Director, Industrial Filtration. "We offer solutions that make processes more economical, conserve resources, protect people and the environment, and thus contribute to improving quality of life."

Filters protect people from fine dust and pollutants in the air. In production facilities, they play an important role in health protection as well as process optimization and product quality. For example, filters from Freudenberg in paint shops prevent painted surfaces from becoming contaminated with dust while keeping the breathing air for workers clean. In medical technology, which requires absolutely pure production environments, Freudenberg filters are used for contamination control. In automobiles, interior filters from Freudenberg ensure clean
air inside the vehicle. Additionally, engine intake filters ensure efficient engine performance. A comprehensive portfolio of filters for air purifiers completes the offering.

Freudenberg Filtration Technologies operates five locations with around 600 employees in China. From Chengdu, Changchun, Beijing, Suzhou to Guangzhou, Freudenberg supplies state-of-the-art filter technologies quickly and efficiently to its customers. At the sites in Suzhou, Changchun, and Chengdu, capacities are being increased and new production lines introduced by 2016. In Suzhou, the site is being expanded, including the construction of a cleanroom to enter the medical business.