Pierburg Secures New Business for Compact Exhaust-Gas Recirculation Valves for Gasoline

January 11, 2016

Orders from NAFTA

Pierburg secures new business for compact exhaust-gas recirculation valves for gasoline engines; KS Kolbenschmidt secures new business for steel pistons for commercial applications As an international leader in the market for exhaust-gas recirculation (EGR) systems Pierburg has developed a new compact EGR valve for gasoline engines. It will be built at Pierburg's South Carolina facility for delivery to a notable U.S. OEM. KS Kolbenschmidt also was recently awarded a follow-up order to supply its newest- generation steel piston assemblies to a prominent commercial vehicle engine manufacturer of 13 and 11- Liter engines. The component's comparatively small and compact footprint takes into account the continuous reduction in engine installation space typically found on today's engine models. In answer to the high cost of fuel and ever-tighter regulations regarding CO2 emissions, Pierburg GmbH has been specializing, among other things, in exhaust-gas recirculation (EGR) modules for decades. EGR valves have chiefly been employed for the reduction of diesel engine emissions since the 1980s. A trend in the industry today is an increased use of EGR valves in gasoline engine emission control due to the incremental fuel-saving potential they offer. Meanwhile, Pierburg's annual international production volume of EGR valves and modules is as high as six million units. A record was recently achieved by Pierburg S.A. in Spain's Basque Country, which has now delivered over 75 million valves. Besides the U.S. and Spain, the company manufactures these valves at its plants in Germany, the Czech Republic, India, and China. The effect of exhaust-gas recirculation is based on a lowering of combustion temperatures in diesel and gasoline engines. Lower temperatures mean a reduction in nitrogen oxides. On gasoline units, this is accompanied by less fuel consumption when taking back the throttle under partial load, which is one reason EGR modules are today drawing the attention of automakers. Steel pistons contract totals $165 million (€150 million) The contract for commercial vehicle pistons, which will run through 2019, is worth $165 million (€150 million). Series production start-up is scheduled for the first quarter of 2017. Shipments will be made according to the principle "local for local," with the pistons for the customer's European plants being manufactured in Neckarsulm, while in North America the pistons are being supplied from Kolbenschmidt's Mexican plant. The contract comprises the entire piston assembly consisting of pistons, piston pins, retaining rings, piston rings, and cylinders (liners). It once again emphasizes KSPG subsidiary KS Kolbenschmidt's competence as a foremost supplier of complete piston assemblies. The units are destined for commercial vehicle engines manufactured to the latest Euro 6 emission standard and feature a fuel-saving Fuel Consumption Package. About KSPG KSPG AG is the parent company of the Automotive sector of Germany's Rheinmetall Group. Sales in 2014 added up to approximately $2.7 billion (€2.5 billion) of which NAFTA accounted for $380 million (€345 million) (approximately 14 percent). This first-tier auto- component supplier has been operating on the international automotive markets for over a century and employs a worldwide workforce of around 11,000. Its US and Mexican operations have a workforce of over 1,900. Other locations are in Europe, Brazil, Japan, India, and China.