Faurecia to purchase Hug Engineering

22 December 2017

Faurecia announced that it has entered into an agreement for the acquisition of 100% of the Swiss company Hug Engineering. The company—currently owned by the German Group ElringKlinger—specializes in complete exhaust gas purification systems for engines above 750 hp. The financial details were not provided.

With the acquisition, Faurecia intends to become a major player in emission control systems for high horsepower engines, such as those used in marine propulsion, power generation, rail, agricultural and other industries. Faurecia estimates that the market for emission control systems for these engines is expected to grow rapidly to reach €2.4 billion in 2025, as regulations come into force which will cover over 75% of the market as compared to only 25% today.

Hug Engineering is the market leader in Europe and one of the largest players worldwide, according to Faurecia. It develops and offers its customers complete systems including manufacturing and assembly. Its key technologies are diesel particulate filters, selective catalytic reduction of NOx and catalytic oxidation. The company has around 50 million euros of sales and employs 230 people worldwide in five countries.

The transaction, subject to regulatory approval in some European jurisdictions, is expected to close during the first quarter of 2018.

Source: Faurecia