2/2013

The latest news from the Group

ann Nova Odessa. He knows pistons like Brazil. For the 51-year-old, teamwork and Osvair Sperque the back of his hand. “A fascinating prod- sharing knowledge are the most important enjoys the uct,” he says. Osvair Sperque has been work- success ingredients. “Regular technical challenges of his ing for 14 years at KS Kolbenschmidt in Nova training for my staff is something I consider job – mastering Odessa, Brazil. He started out as a produc- very important. They rotate from one ma- new technologies tion operator, was promoted to process ana- chine to another and so are able to help each or calling in on lyst a couple of years later, and today he sup- other in getting to grip with new tasks,” says customers abroad. ports four production lines, and twenty the mechanic by trade. He appreciates hav- co-workers assist him in his job . His special- ing been able to continuously extend his ty is solving quality problems and preventing knowledge by attending technical courses on production outages. A team of twenty assists such subjects as CNC. “Business travels him in his job. “Each day anew my team and I abroad have always been most instructive face up to the challenge of making sure pro- and interesting. It’s a pleasure explaining to duction fl ows trouble-free. Our aim is to de- customers the workings of our products.” liver the best-quality products,” emphasizes He’s certain he’ll stay with KS until retire- the father of two from Arapongas in northern ment. “I don’t know where I’d be better off.” The process analyst

Maybe 2025 sounds like a long way off, but that’s when the U.S. federal corporate average fuel economy (CAFE) goal of 54.5 miles per gallon takes effect. Cars now average 29 mpg and light trucks 24 mpg. The 2025 target, however, covers both types as a single standard. Making it 1 even more diffi cult, light trucks now comprise half of all U.S. light vehicle 2 sales. So clearly automakers and suppliers face a daunting task ahead. 3 The idea is to reduce consumption and ex- and a shift to more aluminum and other light- haust emissions while also lowering U.S. re- weight materials to reduce vehicle weight. 4 liance on oil imports. Meantime, federal and Fortunately, strong sales in most major California emissions standards are poised to markets can provide automakers and suppli- become even more stringent, adding to the ers with the profi ts they’ll need to bankroll technical challenge. the technical advances necessary to meet Pollution control also is becoming a top the twin goals of fuel economy and lower priority in smog-choked, fast-growing and emissions. 5 emerging markets such as Brazil, China and In the still-recovering U.S. market, sales India. are forecast to exceed 16 million this year, up In the U.S., the advent of electric and hy- from 14.4 million in 2012. And IHS Automo- brid vehicles, plus the long shot of fuel cells, tive predicts North American sales will reach will help. Federal subsidies ranging from a hefty 18 million units by 2019. $2,500 to $7,500 and Cali- fornia’s $2,500 rebates aim to spur sales of EVs and hy- brids. A recent research re- port indicates global hy- The future

is now By David C. Smith 1 Marinette/USA brid/EV production will rise China, the world’s largest market, is fore- 2 Auburn Hills/USA 29 percent to 3 million units in cast to rise to 20.3 million in 2013 against 6 2016, but that would be only 3 19.3 million last year. Sales are also strong in 3 Greensburg/USA percent of anticipated worldwide Brazil and India. The biggest challenge is Eu- light vehicle output. rope, although even there signs of economic 4 Fountain Inn/USA That leaves internal combustion recovery are beginning to take hold. engines (ICEs) and diesels to carry by far Still, it’s clear that the winners will be those 5 Celaya/Mexico the biggest load. Proven technology such as that understand there’s no time to waste and turbochargers and superchargers that boost are developing the right technology solutions Nova Odessa/Brazil performance of smaller engines will play a to meet the industry’s challenges. 6 major role. So will direct injection and im- The future is now. provements in engine internals and the growing trend of up to nine-speed transmis- Sharing a Pulitzer Prize among a lot of other awards sions. in his career David C. Smith is a renowned specialist Other solutions include stop-start technol- for the American automotive market and is actually writing for Ward’s AutoWorld, the famous trade maga- ogy that shuts off the engine when the vehi- zine, who’s editor-in-chief he was for many years. cle is stopped, further gains in aerodynamics Detroit/Nova Odessa/Celaya. The presence across the Pond goes back for more than 50 years to Brazil with the formation in São Paulo of the Brosol com- pany in which Alfred Pierburg acquired a minority stake in 1958, in fact the fi rst away from home.

Brosol was joined by Kolben- achi, holds a stake. This was fol- schmidt that in 1968 likewise set lowed in 1999 with the takeover of up in São Paulo’s Santó Andre dis- Zollner Pistons, a company steeped trict (photo below). At the end of in tradition. The same year saw the the eighties, Kolbenschmidt then startup of piston production at moved to new plant premises in Large Bore Pistons Inc., again in Nova Odessa, around 150 km to Marinette. Meanwhile, here at this the north of São Paulo where in branch of Lake Michigan is one of 1997 the then Plain Bearings divi- the world’s biggest suppliers of sion built a new factory. The pro- pistons for cars as well as light and duction of bushings for the South medium commercial vehicles. American and German auto mar- KSPG invested in 2003/2004 in kets started with a team of fi ve. setting up a sales and develop- Meanwhile, this facility together ment center in the auto city of De- with plain bearings production troit. Meanwhile expanded, the from Fountain Inn in the USA is lo- new North American Technical Auburn Hills. The North American Technical Center (NATC) of KSPG group was designed to harness the global KSPG re- cated in Celaya, Mexico. Center was inaugurated at Auburn sources along with local personal and professional expertise that best serves the regions customers with access to world- In 2000, Pierburg began manu- Hills in the spring of 2008 as the class engineering, design, prototyping and product validation. In 2008 the Auburn Hills facility opened in the suburban facturing oil and water pumps in sales and product engineering Detroit area and located near many of the vehicle industry development centers. This new operation was one of three of Brazil and since 2006 in a newly center for all divisions. our facilities located around the world designed to directly serve the customers in local markets. Currently four KSPG built production shop on the group Just as in Brazil, the Mexican op- Automotive companies utilize the resources of the NATC including Pierburg, Pierburg Pump Technology, KS Kolbenschmidt site. Since 2007, this most recent erations of the KSPG Group started and KS Gleitlager. Each of these activities provides sales and technical services to their customers from this facility. Brazilian production plant of the out with the carburetor. However, KSPG Group has also been making on this Central American market,

“Our customers continue to devel- motive sales program for KS Gleitlager. op powertrain projects for their global “In today’s market we not only have to products. Capable suppliers with the have great technology solutions, we ability to supply quality components Greater must know how respond to the cus- on a global scale clearly have an ad- tomer promptly and be very in vantage in this market, as purchasing managing our costs and the budget,” agents can source a particular compo- noted Godin. “With minimal margins nent only once to gain an economy of success and strong competition we have al- scale that helps ensure consistent ways have to be smart on how we quality and a reasonable price,” noted serve our customers so we continue to Donald Cameron, president, KS Kol- The North American tech- develop long-term relationships for all benschmidt US, Inc. “That it is why nical Center is home to the KSPG companies.” our presence here is so important so The North American Technical Cen- we can bring our global resources and several KSPG companies ter has been a useful tool in personnel

piston and exhaust gas recircula- the Group adopted er ior tion valves for the aftermarket. the role of licen- The United States has always sor and know- Competent been an attractive market for the how sharer contacts at the companies making up today’s rather than Auburn Hills site: KSPG AG. For Pierburg, this market operating H Myrle Hughes (l.) u r was very signifi cant since its chief under its n o and Jürgen Luft. n a O customers, the German carmakers, own fl ag. g ake i L

h depended on exports to the USA At the start of 2006, KS Kolben-

c i New and hence all their components schmidt acquired the OEM busi-

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Yo (such as the carburetors) had to ness of the Mexican company Pis- e

k e r i match the needs of this market, tones Moresa in Celaya. The prime

a Detroit E L ke lvani too. However, due to licensing intent of this move was to expand a L Pennsy agreements existing at the time it piston business in the Nafta re- was initially not possible for Pier- gion. Since 1956, Pistones Moresa burg to establish its own business has been making gasoline and die- experience to every phase of product is seeking today and that puts the KSPG recruitment activities. Potential em- development and its manufacture.” companies in a favorable position to ployees see fi rst-hand the organiza- Cameron added that much of our help them address those issues. tion with all the KSPG companies do- Signifi cant success at this facility is attributed to “Our customers want their strategic ing business in the region. the people working here with their suppliers close to them so that they “In a market where the competition many years of experience in this indus- can rapidly respond to issues and op- for talented engineers and sales peo- try and a passion for technology and portunities in this increasingly faster- ple is fi erce, putting all the KSPG com- synergy symbols engines. Many have worked for the paced development and manufacture panies under one roof and raising our OEMs and understand the needs of cycles.” added Hughes. “Our confer- visibility in the market has a number of their customers at a detailed level. ence rooms have become an attractive benefi ts,” noted Juergen Luft, Director, KSPG in the Americas for over 50 years These same people are instrumental in location for our customers to have Engineering Research and Develop- mentoring the enthusiastic young em- meetings with our staff to help expe- ment, Pierburg LLC. “In our recruit- in this market. So, the US market sel engine pistons for car and com- ployees as they mature in this busi- dite project progress with all the key ment efforts we can better illustrate was, to begin with, supplied from mercial vehicle manufacturers. ness. players in the room.” our commitment to this market and the Mexico and Brazil, and only in 1981 The new KS de México was the “This business is still built on cus- Dan Godin is an excellent example potential for career opportunities and did Pierburg operate through its launch pad for another expansion tomer service during the sale, devel- of a person who has taken advantage not just offer a job to some of the top own US outlets and then in 1994 at KSPG’s Celaya location. Only a opment and manufacturing,” said of the career opportunities made avail- and most talented candidates.” decide to set up a production plant year later this was followed by Pier- Myrle Hughes, senior account manag- able to him at KSPG. He came to the Also, Luft added that all the KSPG at Fountain Inn, South Carolina. To- burg Pump Technology, that settled er, Pierburg. “The responsibility of the company as a sales representative companies has the potential to take day’s product lineup includes fi rst of all at Chihuahua and then regional teams is to harness the com- and has matured with education and advantage of operation and adminis- throttle bodies, oil and water moved later to the Group’s commu- pany’s global resources to provide the success. trative synergies while at the same pumps, followed by secondary-air nal home. The most recent addition best results for the customer on a “The company worked with me as I time share customer or product infor- at Celaya was the expansion in 2012 timely basis.” fi nished my marketing degree and mation that will help more effi ciently pumps and exhaust gas recircula- Hughes also noted that customer then headed up the GM sales for the serve our customers better than if we tion valves. to include further production and emphasis on vehicle with improved fuel piston business and now head up the were located in separate locations. This Kolbenschmidt has also had offi ce buildings. Besides the water economy and emission controls while KS Kolbenschmidt US, Inc. Automotive is combination that has the potential plants of its own in the USA for over recirculation and vacuum pumps of enhancing overall performance are crit- Sales activities.” Recently he added to lead to even greater success in the 30 years. A piston plant was found- Pierburg Pump Technology, KSPG’s ical issues every vehicle manufacturer the responsibility of leading the auto- years ahead. Paul Klapproth ed in Marinette, Wisconsin, in 1978, plain bearings operations until and 1990 saw the predecessor of then located in the USA (Fountain today’s KS Kolbenschmidt US, Inc., Inn) and Brazil (Nova Odessa), Rene Gansauge Emission regulations and market forces create opportunities in the in which Japan’s Atsugi-Unisia have found a new home in Celaya. took over August Nafta for our technologies whether it is with our pumps or varied Pierburg Corp., meanwhile belonging to Hit- Dr. Ch ristian Leitzbach 1st, 2013 the products. We have tested solutions that our customers fi nd attractive. They function as Presi- recognize that our products are on the innovation leading edge and look to dent of Pierburg us for solutions to help them successfully come up to future emission US LLC from regulations. Our technical compe- Marcus Gerlach, tence is widely respected by them. who will take over Competence We are working hard to constantly a responsible func- improve the good reputation of Publisher: Rheinmetall AG Responsible: Peter Rücker, tion in the Finance Pierburg focusing especially on product quality, delivery reliability and P.O. Box 10 42 61 Editor-in-chief: Rolf D. Schneider and Controlling competent technical advisory service. They have taken note of our efforts to D-40033 Düsseldorf Photos: Juarez Godoy (1, 4, 5, 7, 8), department at the build a competent team and resources here in North America to better be a [email protected] Dwight Cendrowski (2, 3, 4, 5, 6, 7), Pierburg Head- good partner to them in developing successful solutions to their powertrain Issue: September 2013 Shutterstock (1, 2), KSPG AG quarter in Neuss. challenges. We need to be the preferred supplier in everything we do. ann Celaya. The piston business in Celaya, creasing degree,“ says Francisco De Velasco, Central Mexico, has a long tradition, with the COO Americas for the Small Bore Piston BU. country enjoying the benefi ts of both near- The 45-year-old, who for twelve years has held ness to the US market, comparatively low various functions of increasing responsibility wages and highly skilled labor. Another boost within the enterprise, is proud of the steady is the clusters of auto component suppliers expansion of this company with around 700 and the supplier network that have converged highly skilled employees and a strong and over the past years. „Mexico is on the way to growing community of customers and suppli- becoming the fourth biggest exporter, after ers. „GM, Ford, and Nissan are our chief pis- Japan, Germany, and South Korea. The as- ton customers. In terms of both technology sembling of North American auto and engine and service we are on a par with other KSPG parts along with tier 1 production are moving locations in the industrialized nations.“ Only more and more to Central Mexico where even recently two new major accounts were won the big OEMs are setting up base to an in- and so the production area is set to be ex- panded by 20 percent and about another 50 employees will be hired. Global cooperation will be stepped up, too. „With the loaning of Piston talented employees to other KSPG locations and the sharing of best practices (with the US Marinette, KS Kolbenschmidt Brazil, KSKK Ja- “Around pan or the Czech Ústí plants) we will continue business well to move ahead.“ 16 million new motor vehicles are set to be built progressing in 2015. Many Americans think it‘s time to trade their old vehicle for a new one.” Donald Cameron

Proud on the solid developement of the com- pany: Plant manager Samuel Regulado (l.) and his predecessor Francisco De Velasco. ann/pk Auburn Hills. The North American automotive market is recovering from a major recession that devastated OEMs and suppliers. At about 11 years, the average age of the vehicle fl eet on the road today is the highest it has been in years. While such longevity is a testament to the quality of ve- tho Marinette. Pistons from KS Kolbenschmidt are found fi rst and foremost in hicles produced in recent years, it also refl ects a high level of pent up de- passenger cars and commercial vehicles. But the company also specializes in XXL mand – it’s time for many people to buy a new car. Customers already are models with diameters of up to 640 millimeters and weighing as much as 500 kilos. coming back to dealer showrooms and, assuming the economy remains healthy, more than 16 million cars and light trucks could be produced in These pistons are developed at the company’s Neckersulm plant, where they are also North America by 2015 to bring us back to pre-recession production levels. produced – with one exception: the North American market is supplied directly from a factory in Marinette, Wisconsin. The plant’s eighty employees turn out nearly 24 000 large pistons a year, though none of them weigh 500 kilos! Engines that big are almost Close teamwork for never built in the US, even though everything else there seems to be king size. The pistons from Marinette, measuring 160 Sales in 2012 came to around 20 million. In to 320 millimeters in diameter, weigh between the short term, Hartmann does not expect to 10 and 120 kilos. “They are used primarily in see “appreciable growth”. This is because the the engine‘s heart locomotives, compressors for pipelines and factory in Marinette is already operating at power plant motors”, explains Wolfgang Hart- near-full capacity. “In the foreseeable future, KS Kolbenschmidt in the USA going for global cooperation mann, who has been with KS Kolbenschmidt however, we’re going to relocate production of for 27 years, and has headed the Large Pistons certain pistons to China that were previously unit since 2008. Among the company’s princi- made in Europe.” The capacity that this will At the same time, vehicle down- 20 years, cites the company’s techni- pal customers in the US are technology groups free up is supposed to be used for new busi- sizing along with heavier piston cal expertise and global capabilities like General Electric and heavy equipment ness activities in America. loads are key trends in North Ameri- as its key competitive assets. „With specialist Caterpillar. “With customers like Primarily, Hartmann sees potential in the af- ca. KS Kolbenschmidt’s new genera- our strong global presence we are in these and a broad spectrum of applications in termarket: “Locomotives, which normally need tion of pistons are designed specifi - a position to supply customers energy and transportation, we’re very well po- an overhaul every seven years, offer an exam- cally for the new wave of highly worldwide with very competitively sitioned in the North American market”, states ple, and we want to be the ones who supply the effi cient, small direct-injection en- priced components,” said Cameron. the 58 year old. pistons”. Today they still come from General gines that are more advanced and Cummins, a top global manufac- use turbochargers to boost perfor- turer of diesel and natural gas en- mance. gines, is a good example as KS Kol- The piston remains a critical pow- benschmidt supplies Cummins in ertrain component in achieving the United States as well as in South OEM performance goals. KS Kolben- America, Europe, India, and China. Aftermarket schmidt’s combination of innova- „Our global cooperation with Cum- tive lightweight designs, improved mins’ facilities in these countries is materials and longstanding machin- outstanding. We also get a lot of ing expertise allows the company to technical support from our KS Kol- squarely develop and manufacture pistons benschmidt colleagues in Neckar- that meet the high expectations of sulm, Germany; the North American its customers. Technical Center in Auburn Hills, One recent example is a major Michigan; and from the Engine Test in its sights project involving the SteelteKS pis- Center in Fort Wayne, Indiana. Our ton, which is a steel piston for com- global team can serve our custom- Large bore pistons mercial vehicles. “The unique com- ers anywhere they need us.“ looking for expansion pact design and an innovative The North American Technical production technique impressed our Center provides technical support customer with the enhanced engine for pistons and plain bearings. KS Electric. Products from KS Kolbenschmidt have performance and service-life,” said Gleitlager is focused on plain bear- only been used in GE locomotives since 9 years, Donald Cameron, president, KS Kol- ings and bushings with ample po- when US emission standards were tightened. benschmidt US, Inc. The company’s tential in the market for expansion. Soon, engines with pistons from Marinette innovative design and manufactur- A new production facility in Mexico will be appearing. “Since for every locomotive ing approach also has supported a will produce traditional engine bear- that’s overhauled, a new one rolls out, we can strong demand in the North Ameri- ings, as well as specialty products double our production numbers”, insists Wolf- can market for lightweight and such as Permaglide plain bearings gang Hartmann. He is confi dent that this will strong LiteKS pistons for car engines. for transmissions, industrial appli- work out according to plan: after all, it’s more Cameron, who has held a variety cations, and farming and heavy ma- economical to replace than repair – at least of senior positions in KSPG for nearly chinery. when it comes to pistons. ann Marinette. Clare had plenty of development Pierburg US Welty has been working potential and in 2007 for the KSPG Group in Clare was made Training Engine components for the Marinette for 38 years. Manager and then North American market She began in 1975 as a Continuous Improvement machine operator em- Manager. Only two years Fountain Inn. The some 200 employees of ployed at the piston plant. later she took another step the Pierburg US parent plant at Fountain Inn in In 1992, she had the forward in her career and the state of South Carolina, manufacture ex- opportunity to be a core moved into the position of haust gas recirculation valves, electric throttle team member of a new Quality Manager for the bodies, and solenoid valves. Mainly intended continuous improvement large-bore piston business for North American OEMs such as Ford, Gener- program being implement- in Marinette. Besides al Motors and Chrysler, these components help reduce fuel consumption and emissions. Re- ed in Marinette. Says quality processes, the sponsible for marketing and engineering is a Welty: “Understanding mother of three is 30-strong team at the Technical Center of the what could be improved in dedicated to employee KSPG location Auburn Hills, Michigan. Pier- the production processes leadership and advance- burg US leads the market for light- and heavy- was a fascinating experi- ment. In her present ence.” In the years that position as Talent Devel- followed, she developed a opment Manager she passion for the quality practices what she has processes. In 1995, Clare herself experienced, was promoted to the posi- assisting employees tion of QMS technician in their development. and four years later, “I‘ve arrived at my dream coordinator for the quality job,” says the 59-year- management systems. As old who has never even a member of the Quality thought of changing team she shared responsi- employers. “It’s a great bility for implementing the pleasure for me to work Organization Talent truck diesel engine components in it’s market ISO 9000 Quality Manage- together with people that segment. In the car sector which in North America primarily uses gasoline engines, the ment System and later the differ in their character, Development Manager company intends to further expand its market ISO 14001 Environmetal their education, and their position. Each year there is a rise in the number Management System. background. This has of turbo-charged engines. And for this mode of Her bosses at the time vastly broadened my own Clare Welty together with her HR colleagues at Marinette oversees the engine technology, the solenoid valves sourced recognized that she still horizon.“ development of altogether 900 employees in North America. from Fountain Inn are perfectly suited.

KS Kolbenschmidt US Two partners join forces

Marinette. Over the past thirty years, KS Kolbenschmidt has made a name for itself on the KS Kolbenschmidt Brazil North American market as a fi rst-tier auto-component supplier to notable OEMs. This posi- tion has been bolstered by the joint venture with the Japanese Atsugi-Unisia Corp. formed in 1990 which created a regional platform for supplying Nissan pistons and which mated Broad domestic business and Japanese competence in quality and design technology with Kolbenschmidt’s production customers throughout the world competence. Today, a workforce of around 850 employed at Marinette, Wisconsin, backed by longstanding experience in high-strength aluminum alloys and steel pistons, turns out daily about 60,000 pistons for cars Nova Odessa. KS Kolbenschmidt and commercial vehicles. Vast ex- Brazil employs a workforce of around pertise in production paired with 1,400 at its Nova Odessa location. ingenious piston design ready the On a production area of around company for next-generation pow- 55,000 sqm, pistons with diameters ertrain technologies. of 32 to 140 mm are manufactured. Marinette saw in 1998 the The portfolio comprises around 500 emergence of another location for different types of which a total of the production of large-bore pis- over 14 million are produced annual- tons (in addition to ). ly. More than one-half goes to buyers On an area of 5,500 sqm, 85 em- in Brazil. The main customer sector ployees work multishift. In 2012, is the where the The organizer with around 24,000 large-bore pistons pistons are installed in both car and were shipped out – for marine die- truck engines. Products from Nova a gift for languages sels, stationary engines for power Odessa are also used in motorbikes generation plants and locomo- and power saws. Around 40 percent ann Nova Odessa. The KSPG tives, as well as another some 8,000 steel pistons for the small-piston plant intended for of sales at KS Kolbenschmidt Brazil Group was a stroke of luck for Már- marine and commercial vehicle engines. “Our factory uses the latest computer-controlled is generated by exports. The mar- cia Elaine de Oliveira. When she turning, milling and grinding units for machining such items as forged blanks, upper and kets are, besides the USA and Mexi- applied for a job at the end of the lower engine parts in aluminum or steel, as well as lower-section castings in nodular graph- co, in particular Europe where motor eighties, she had just returned from ite – all fi nish machined. Rising standards of quality coupled with climbing production costs vehicle manufacturers in the UK, have meant that products today are no longer manufactured in separate steps but that, France, Italy, Sweden, Finland, Po- a two-year stay A life-time of learn- wherever possible, a large number of stages are combined. This is where our employees land, and Germany are shipped in Germany. contribute their vast expertise as they do in the operation and programming of the equip- these products. Among the custom- ing – this is what “What I was ment. Another area in which we score heavily with our customers is quality, product clean- ers on both sides of the Atlantic are Márcia Elaine de looking for then Oliveira likes about ness and on-time delivery,” says Klaus Bacher, Plant Manager at KS Large Bore Pistons. Daimler, Ford, Perkins, and Renault. was a multina- the Group. Besides tional German graduating in Lan- company where guages and Law (evening courses) I could make the she has repeatedly most of my The quality conscious improved her com- knowledge of puter and business languages,” she ann Marinette. Over the past 13 years working at knowledge by at- recalls. In the KS Large Bore Pistons, Angie Thomas has acquired tending many in- 25 years that vast production process expertise. Starting out as a house courses. followed she machinist, she then gathered quality and production acquired a great experience before being promot- deal of experience as a secretary ed to Quality Manager in As Quality Manager, Angie working for various managers and April 2012. “My goal is the Thomas is also responsible today she is employed as assistant continuous improvement for ISO certifi cation. Over to the Direction of Pierburg Pump of component quality. the years, the 39-year-old Technology. In order to maintain has been groomed for the strict quality stan- job in the course of many dards it is very inhouse seminars. important to regu- larly share ideas with our coworkers at Marinette. We’re a great team,” says the mother of three. KS de México Stable enterprise with a balanced product portfolio

Celaya. Piston production in Mexico goes back to the sixties although setting-up a carbure- tor manufacturing facility, especially for feeding the location at Puebla, was the MS Motor Service Brazil KSPG’s fi rst step in this North American country. Over the years, piston production made good Parts for the South progress, too. Until 2006 the Mexican piston market had been supplied from Brazil. Then at American aftermarket the start of 2006, the then KS Kolbenschmidt (to- The productive day’s Hardparts) division acquired the OEM pis- Nova Odessa. Through a widespread net- tons business of the Mexican company Pistones work, MS Motor Service Brazil which belongs to project coordinator Moresa in Celaya. The prime objective of newly KSPG Automotive Brazil in Nova Odessa, sup- founded KS de México in Celaya (an industrial The teacher plies top-quality engine components made by KS Kolbenschmidt, Pierburg Pump Technology ann Celaya. Cesar Arredondo has and KS Gleitlager, to resellers and auto work- been with the Group for over 33 ann Nova Odessa. As an expert shops. The workforce of almost eighty that han- years. The 52-year-old father of four in internal combustion engines, dles the complete chain from sourcing to sales, looks back on a remarkable career. Itamar Oliveira is able to fully also provides comprehensive technical after- In the eighties and nineties working capitalize on his knowledge when sales service and carries out local training in supervisor positions for various working for the KSPG group. For courses both at Nova Odessa and on distributor product groups, 13 years, the 39-year-old has been premises. The racks at MS Motor Service Brazil Production pro- accommodate products with 2,500 different he acquired employed as a technical advisor at cesses are a pet part numbers, from pistons and cylinder liners broad-ranging Motor Service passion of Cesar via plain bearings and connecting rods to water experience, part- Itamar Oliveira Brazil . Among Arredondo. His and oil pumps as well as fi lters. With parts avail- ly as a result of regularly calls on the focal points work involves resellers and ability of over 90 percent, customers within the on-the-job train- city with a population of around 350,000), was of his work is the nearby region receive their orders within 24 close cooperation their customers ing. In 1996, he to develop business in the Nafta zone and hence hours, the more remote within just a few days. with coworkers at bolster international sales. Nowadays, the loca- throughout Brazil analysis of the other locations was promoted to tion manufactures around 6.5 million aluminum and Latin Ameri- damage suffered such as KS Kol- the position of and steel pistons as well as power cylinder units ca to explain by certain engine benschmidt in Production Engi- (PCUs) for cars and commercial vehicles. In the such subjects as parts. A father of car sector the trend is moving toward high-per- Marinette. neer at KS Kol- new engine tech- two, he appreci- benschmidt in formance lightweight pistons while aluminum nologies. ates the chal- Mexico. Right now, he is preparing pistons with an internal cooling chamber are also in demand. For commercial vehicles, heavy- lenge of advising steel piston production for the later duty steel pistons are built with the aid of state- local customers about the neces- half of the year. of-the-art laser hardening technology for much sary replacement parts and shar- reduced wear at the piston ring groove. ing his knowledge in the course of inhouse seminars held for employ- ees at various KSPG locations.

KS Gleitlager Mexico “Local content” for North and South America

Celaya. KS Gleitlager’s 75 employ- ees in Celaya, Mexico produce plain Ninety percent of bearing bushings and thrust washers. the components Around 80 percent are destined for The team player are imported. For the North and South American mar- The materials planner ket. The remaining 20 percent are ex- Adriana Cortes, the ported to Europe. The product range ann Celaya. Juan Nelasco Obra- biggest challenges jero was promoted to the position encompasses a hundred different are getting the models, which of lead operator at KS Gleitlager in ann Celaya. Teamwork is very important for Adriana Cortes. Re- stuff through cus- – depending Mexico in October 2012. He fi nds sponsible for materials planning in the Logistics Department at Pier- toms and keeping on the require- the job highly varied. The 30-year- burg Pump Technology, she works closely together with Purchasing an eye on costs. ments – vary in old father of and Production. The 34-year-old mother of a young daughter makes terms of mate- For Juan Nelasco three is respon- sure every day that the various components (circuit boards, housings or rotors) that go rial, shape, Obrajero, it’s all and size. The sible for making into the vacuum pumps arrive on time and in perfect condition. Adriana has been with about trusting one coated prod- sure that the the company for over three years. “I think highly of my bosses and coworkers.” another. “If they ucts are made machines used have no problem of steel and in the produc- aluminum, approaching me tion of plain- steel and with their prob- bearing bush- bronze, as well lems, I feel I’m Pierburg Pump Technology Brazil as Permaglide ings operate doing a good job.” materials, trouble-free. Proven technology for South America which consist “Whenever my mates have ques- of a combina- tions about the setup or want some Nova Odessa. On the Brazilian market, Pierburg Pump Tech- tion of steel, adjustments done to the machines, nology do Brazil sells a wide array of mechanical oil and water bronze and plastic. Other variants are I’m all too glad to help. My idea is pumps that for many years now, have proven themselves in Eu- made of steel. The plain bearings and that we can solve problems as a rope, because the country does not know passenger diesel cars. thrust washers made in Celaya go pri- marily to automakers like Chrysler, team. Every suggestion is worth For the actual fl exfuel motors that run on gasoline and ethanol there is hardly any demand for state-of-the-art products. By this General Motors and Volkswagen, but listening to.” reason mechanical oil and water pumps, developed in France also to numerous parts suppliers. The and Italy, are manufactured at the Nova Odessa location which is also the home of the affi liates KS range of applications extends from Kolbenschmidt and MS Motor Service. Some two million pumps are turned out annually. Among the transmissions to shock absorbers customers of Pierburg Pump Technology Brazil (with a workforce of around 160) are Fiat, Ford, Peu- and from door hinges to connecting geot, Citroën (PSA), and Volvo. rods. Moreover, plain bearings from Celaya are also used in non-automo- tive products such as motors, gear units and cardan shafts for construc- tion equipment and compressors. Pierburg Pump Technology Mexico High-tech pumps for Nafta Celaya. At its Celaya location, Pierburg Pump Technology Output in 2014 will probably be in the region of over one mil- Mexico produces mechatronic water, oil, and vacuum pumps. lion pumps. Production of mechanical vacuum pumps, of Since the output of these units can be varied to match the which 150,000 are presently manufactured, is rising repeat- demands of the engine, they play a part in reducing consump- edly, too. These will be joined starting from 2015 by a so- tion and emissions. Hence, demand, especially in the Nafta called tandem pump, with an initial production volume of zone, is steadily increasing. At present, some 500,000 elec- 700,000. In all, it is planned to increase sales in each case by trical water pumps are manufactured annually. Among the 100 percent over the years ahead. Therefore, the workforce customers are Ford, General Motors, BMW, and Volkswagen. which presently consists of around 60, will be topped up, too. ann Auburn Hills. Jürgen Luft, Director Engineering R&D at Pierburg (photo r.), and Bob Dennis, Manager Less for Technical Service at Pistons, are busy sparking the development of promising products together with their teams. New energy legislation in the USA has triggered increasing demand for exhaust gas recirculation com- ponents. As technology leaders in this market, Pier- fuel burg so far has mainly developed its EGR valves and modules for diesel-type engines. Meanwhile, however, the US market is going to be dominated by the gasoline variety. Recently, the developers at Pierburg in Auburn Hills adapted for gasoline engine use a D.C. motor driv- consumption en EGR valve. Since May 2013, this valve has been in series production in the USA. New projects are going into development for EGR systems for turbocharged and gasoline engines. “We fi nd ourselves supported from two sides. The Actuators Business Unit in Berlin is de- veloping for our local customer a special fl ap mounted on the intake manifold of the engine. The Business Unit Emission Control in Neuss is helping us to develop the emissions right EGR valve solutions which are meeting our cus- tomers expectations. Currently, the sample built and qualifi cation tests are being carried out in Neuss, how- Pierburg scores points in North American ever, in the long run this is something we really want to market with cutting-edge engine technology do right here in our joint facility ” says Jürgen Luft who for four years has been responsible for all Pierburg R&D activities in the USA. The 53-year-old is proud of the success of his 14-strong team. “We’re involved in pro- jects with the Big Three in Detroit and are cooperating closely with their advanced development engineers. This approach helps us to look ahead and create

tho Fountain Inn. For many people, the words “South Caroli- at gasoline engines gets constantly more important. In the US, produc- na” conjure up visions of endless cotton fi elds and stately plan- tion still falls short of a million a year. tation houses. But that world is indeed “gone with the wind”. In By 2020, however, the fi gure is fore- recent decades the south-east has undergone major structural cast to jump to over fi ve million. But change, with the automotive industry playing a central role – there are ways of reducing fuel con- sumption even in conventional gas including high-prestige marques like BMW and Mercedes. engines, explains Gerlach: “This is where our emission gas recirculation Since the mid 1990s Pierburg has ernment policy. Under US law, fl eet valves and variable valve drive sys- had a production plant in Fountain consumption – and thus CO2 emis- tems come in.” Inn, a town in the northwestern part sions – has to be reduced by four per- Diesel engines are hardly ever of the state. It produces exhaust gas cent a year through to 2025, other- found in passenger cars in North recirculation valves, electrical throt- wise automakers face severe fi nes. America. That’s why relevant compo- tle bodies, and magnetic valves, pri- For Pierburg US and its 240 em- nents from Pierburg are exclusively marily for the North American market. ployees, this clearly spells opportu- used in pick-up trucks so far. “With Fountain Inn also serves as the head- around 500,000 trucks a year, this quarters of Pierburg US, which also segment is something of a niche includes sales and engineering teams “We are ahead market, but we’re the leaders there”, at KSPG Automotive’s plant in Auburn in reducing fuel adds Gerlach. Basically, the compa- Hills, Michigan. ny offers the same products that it North America remains among the consumption and supplies to European manufactur- world’s largest automobile markets. cutting emissions.” ers, i.e. emission recirculation and Engines in the US and Canada tend to emission management valves, which be big, too, with a large displacement Marcus Gerlach can signifi cantly reduce harmful and lots of cylinders – they’re just not emissions. And automakers need to very effi cient. “When it comes to re- nity. Especially in the magnetic valve get cracking: the Super Ultra-Low ducing fuel consumption, the clocks segment, Gerlach sees major sales Emission Vehicle (SULEV) norm tick more slowly here than in Europe, potential: “Our valves can be used in comes into effect in 2020, which is Global or at least differently”, observes Mar- turbocharged gas-powered engines.” even tougher than Euro 6 when it cus Gerlach, former President of Pier- This engine technology is one way of comes to fi ne particles. “For a lot of burg US until mid 2013. But the count- reducing fuel consumption. This is diesel engines, this will mean the down has already started. But even in because it enables smaller engines – end”, predicts 41-year-old Gerlach. the United States, where a liter of pre- so-called downsizing – with relatively By then, though, new technologies cooperation mium gasoline costs the equivalent powerful performance. In Germany, will certainly be on the market, pre- of just 70 Eurocents, protecting the practically all diesel engines have a dicts Marcus Gerlach, concluding on environment is a major goal of gov- turbocharger now and the turbo rate a note of optimism. With commitment and perseverance, two of the KSPG Group’s development engineers in the USA are looking into ideas for tomorrow’s markets. In doing so, they are assisted by The eager-to-learn coworkers at the global R&D centers. product solutions which are valued by our customers and create successful growth for our company.” The developers at KS Kolbenschmidt US (KSKUS) likewise work closely together with the global R&D planner centers. Jointly with their Neckarsulm peers they de- velop and adapt products for the American market. The colleagues in Japan assist the location in identify- ing global R&D needs. One of the biggest innovations involving KSKUS was the design of the SteelteKS steel ann Fountain Inn. Seventeen years ago Teresa Walk started piston. Says Bob Dennis: “The patented design idea out as a Production Line Lead at Pierburg in South Carolina. A was hatched at our Technology Center now in Auburn short time later she was offered a leadership role and thereafter Hills and allowed us to gain a foothold in the steel assumed responsibility for various pump and pump component piston market in 2009. The ruggedness and longevity production machines. “I had the opportunity of being involved of the piston design for demanding diesel engine ap- in many projects for a variety of customers. In doing so, I learned plications impressed our commercial vehicle custom- not only a lot about the job but about myself, too. For example, ers.” Not long ago, a 12-member team began develop- that I can take on heavy workloads and handle stress situa- ing the next generation of this steel piston. tions.” Nowadays, the 44-year-old is employed as a planner in Another recent project was the optimization of the Logistics. The important thing in her job is to respond fl exibly to piston pin design with the intent of applying new ma- customer wishes and even at busy times, comply closely with terials and coatings for abating friction and lowering transport and loading deadlines. Teamwork is essential in this the risk of piston pin wear. On this particular project, process. In her daily work, she interacts closely with Produc- the location is working together with a technical uni- tion, Customer Relations Management, and Quality Control. The versity. “The engineering students successfully de- mother of a 25-year-old daughter appreciates that her employer vised the key elements of an experimental setup with has given her plenty of scope for personal development. the individual parts such as the drive motor mount “Across the years I‘ve been able to take part in many technical and a piston clamp. Interaction with our developers and personality-development courses. In future, I will also be “Teamwork is essential was very stimulating,” says the convinced 58-year-old attending external seminars at college. I still have a lot to learn!” in this process.” who has been working for the KSPG Group in North America since 2007. The project fi ts neatly into the Teresa Walk product portfolio of the KSPG Group that markets emission-reducing piston assemblies to customers in a wide variety of markets. Nova Odessa. “Brazil – Country of the Future” – so runs the title of a book published by Stefan Zweig nearly 70 years ago. In the meantime this prophecy has long since come true. The country – now home to almost 200 million people – has since emerged as the world’s sixth-biggest economy. KS Kolbenschmidt saw the writing on the wall way back in the late ‘60s, initially setting up shop in greater São Paulo. Then, in 1993, the company moved to Nova Odessa, around 120 kilometers away. Today, under the umbrella of KSPG Automotive Brazil, some 1,700 people work there, mainly making pistons for passenger cars, trucks, power saws and pumps. In addition, the plant, which has its own distribution center, also serves as a hub for aftermarket activities and the sale of plain bearings in South America. “Center of Excellence” In Nova Odessa nearly in South America 14 million pistons are produced per year. Nova Odessa is in the heart of the Brazilian automobile industry More than 60 percent bound for the Vice President Dr. Werner Albus, 52, is proud tined for the domestic market. There is also an- wages have been going up steadily: Brazil is no that Nova Odessa is the sole location of KSPG other part of the factory dedicated exclusively longer a low-wage country. Brazilian market. Automotive worldwide where the Hardparts, to producing pistons in extremely small runs for According to market studies, the country’s Mechatronics and Motor Service divisions all the aftermarket. The complete piston portfolio automotive industry, one of the main custom- these standards, special pistons are required form one company. “This way, we’re able to encompasses around 500 different models. ers for pistons made at the Nova Odessa plant, which KSPG has long sold in other countries, as continue streamlining our processes, for exam- Pistons account for the lion’s share of sales, is expected to grow by three to fi ve percent an- Dr. Albus points out. With the Football World Cup ple through shared services such as human re- which in 2012 amounted to 200 million. Al- nually over the next few years. Moreover, just due to take place in Brazil in 2014 followed by the sources and fi nances”, explains Dr. Albus. Fur- most 14 million pistons are produced in Nova as in many other countries, the emphasis is on Olympics in 2016, new opportunities are present- thermore, the company’s 400,000 square-meter Odessa each year. A good 60 percent of these cutting emissions and achieving greater fuel ing themselves. And our colleagues in Nova campus (the size of sixty soccer fi elds) also are earmarked for the Brazilian market. The re- effi ciency. “Not so much for cars, which mostly Odessa are also eager to benefi t from the coun- plays host to two other companies which are maining 40 percent are exported, mostly to Eu- run on a variable ethanol-gasoline blend, as try’s growing passenger car market. To do this, seamlessly integrated into the piston manufac- rope, but also to Mexico and the US. But ex- for trucks, buses, construction equipment and pistons have to be designed to handle the etha- turing process – another fi rst in the KSPG world. ports are no longer as lucrative as they once farm vehicles”, explains the Vice President. nol-gasoline mix, a fi eld in which Brazil is a global Also profi ting here is Pierburg Pump Technolo- were, says Dr. Albus. “The country’s currency, Since 2012, Euro 5 emission standards have center of excellence. “Even so”, insists Dr. Werner gy, which casts housings here for oil and water the real, has appreciated against the US dollar applied in Brazil. To ensure that diesel engines Albus, “we can still get a lot of mileage out of our pumps – more than 2 million a year – all des- and the euro.” In addition, he also notes that which may not be used in passenger cars meet gasoline engine expertise in Germany.” 360°

tho Nova Odessa. During the past ten gineering at the Tech- But it’s not as if years, the number of vehicles in Brazil has nical University in customer the mountain always grown from 21 million to 38 million. By 2015, Munich, has headed comes to Moham- the fi gure is expected to increase to 47 mil- MSB since 2010. med. This is why ex- lion. This means greater outlay for mainte- MSB’s 77-strong perts from MSB nance and repairs. In part, this is due to the staff covers every support also conduct train- sheer increase in numbers, of course, but also link in the purchas- ing sessions on lo- has to do with the extensive use of high-tech ing and sales chain. MS Motor Service Brazil supplies cation, that is to say, electronics in modern vehicles. Supplying Here, the company’s at facilities belonging auto repair shops in Brazil and throughout technical customer ser- all of South America with to the company’s sales South America with original spare parts is the vice plays a vital role. original spare parts partners. “The people mission of MS Motor Service Brazil (MSB). The “This way, we’re able to we’re really interested in unit, which belongs to KSPG Automotive Bra- fi nd out at fi rst hand what our reaching here are the repair zil in Nova Odessa, is also in charge of train- customers need and where the shop personnel, essentially our ing maintenance personnel. shoe pinches”, says von Heydebreck. customers’ customers”, explains von Stored on the shelves of MSB are products Conversely, customers are also invited to Nova Heydebreck. While this target group primarily with 2,500 part numbers, ranging from pis- Odessa, giving them an opportunity to see wants to know how to use the products, the tons and cylinder liners to plain bearings and how the products are made. There are also training sessions for the sales partners focus connecting rods as well as water and oil pumps training facilities for both theory and practice. on the advantages they offer. and fi lters. “We have an availability rate of “We hold seminars where modern engines are This two-pronged strategy has worked out over 90%”, declares Claus von Heydebreck. completely taken apart and then put back to- well so far. In 2012 sales came to approximate- The 42 year old, who studied mechanical en- gether again”, he adds. ly 62 million Reais ( 25 million).

tho Fountain Inn. Mechatronic coolant, oil and vacuum This is also true of pumps. As Gerlach explains, “Often pumps from Pierburg Pump Technology adapt variably to it’s just the basic functions that count, that is to say, the output of the engine. This can reduce fuel consump- cooling and lubrication of the engine.” For this, mechani- tion and emissions by several percent. The application cal designs are entirely adequate, and PPT offers a wide engineering for customers in the Nafta zone, i.e. Canada, variety of these. Primarily developed in Germany and the the United States, and Mexico, takes place at the KSPG US, they are produced in Nova Odessa, Brazil and Cela- Automotive site in Auburn Hills, Michigan. In South ya, Mexico. “First and foremost, our customers are Bra- America, Brazil serves as PPT’s hub. This is because the zilian subsidiaries of Fiat, Peugeot, Renault/Nissan, country is responsible for around 95 percent of the conti- Volkswagen, Ford and General Motors”, declares the 41 nent’s automobile production. Demand is highest for me- year old. chanical pumps. The Detroit-based trio – General Motors, Ford and In 2012, some 3.6 million cars rolled off assembly lines Chrysler – are the company’s principle customers in the in Brazil. Over the next few years, this number is expected Nafta zone. The company mostly supplies mechatronic Mechatronic and mechanical variants Innovative pump technology for the Nafta zone and the Brazilian market

to increase by three to fi ve percent annually. “However, pumps for gasoline engines, which defi nitely set the tone under Brazilian law, it’s only allowed to use gasoline en- in the passenger car domain. “There are also shipments gines or so-called fl ex-motors for passenger cars, which to several European makers”, adds Gerlach. burn a variable ethanol-gasoline mix”, says Marcus Ger- All told, PPT sales in North and South America togeth- lach, former President of Pierburg US until mid 2013. On er came to 52 million in 2012. In the coming year, the account of the often-high percentage of ethanol, which is company plans to substantially increase this fi gure. What obtained from sugarcane, the CO2 ratio is very favorable. at fi rst glance may appear to be an extremely ambitious EGR valves and modern Moreover, this raw material is renewable: it grows back goal is rapidly becoming a reality: “We’ve already won an coolant, oil and vacuum year after year. In short, reducing consumption and cut- order from a major carmaker worth 50 million a year”, pumps are reducing emis- ting emissions aren’t as important here as in other places. enthuses Marcus Gerlach. sions and consumption. tho Celaya. The Mexican state of offi cials. It all went incredibly quick- Guanajuato is one of the most eco- ly”, says Dr. Ziebeil, summing up the nomically dynamic regions in the experience. country. Celaya, a city of around In October 2011, the fi rst assem- 350,000, has been home to a KS Kol- bly lines went into operation. The benschmidt production plant since production fl oor space, where both 2006, in which products of its sister pumps and plain bearings are pro- unit Pierburg Pump Technology (PPT) duced, encompasses some 10,000 were also manufactured until recent- square meters, but can be quickly ly. In the meantime, however, demand doubled in size. Because mechatron- in the Nafta zone for mechatronic ic water pumps in particular can be pumps, which can be used to reduce variably adjusted to match the out- fuel consumption and emissions, is put of the engine, Dr. Ziebeil looks up sharply. Thus, at the end of 2011, forward to growing production vol- a production plant was constructed umes: “Currently we’re supplying on an adjacent 55,000 square-meter about 500,000 of these a year to site – in what almost must be record customers like General Motors, Ford, time: from planning BMW and Volkswa- to start of produc- gen.” Next year, the tion, a mere six “From planning company plans to months elapsed. produce nearly a As everyone to start of million. knows, the wheels production within For mechanical of bureaucracy often vacuum pumps, too, turn slowly. But not only six months”. some 150,000 of in Guanajuato! This which will be as- certainly goes a long Dr. Frank Ziebeil sembled this year, way to explain the he sees great poten- state’s economic success, notes Dr. tial in the Nafta zone. Starting in Frank Ziebeil of PPT Mexico. The 2015, production of a so-called tan- 48-year-old Hamburg native played a dem pump is set to commence, with leading role in the project from the projected output of 700,000 units. very outset. Besides planning the “As things stand, we’re going to be factory, all sorts of permits had to be doubling our sales by 100% every “It all went obtained, from water rights and fi re year for several years to come”, pre- safety to the number of parking spac- dicts Dr. Ziebeil. By the same token, es. “The Ministry of Economic Devel- the staff, which now numbers 60, will opment assigned us a sort of ‘guard- be increased to 150. The Mexican incredibly ian angel’ who accompanied us every state of Guanajuato is thus reaping step of the way, providing terrifi c sup- the rewards of its business-friendly Because mechatronic water pumps in port in all our encounters with local policies. quickly” particular can be variably adjusted to match the output of the engine, Dr. Frank Ziebeil of PPT Mexico looks forward to growing production volumes.

tho Greensburg. ABM LLC, located in automotive and industrial applications”, Development. However, the two plain bearing Greensburg, Indiana, in the United States, is a declares Dr. Klaus Pucher, 43, Vice President specialists have no intention of resting on their joint venture founded in 2005 by KS Gleitlager Research & Development at KS Gleitlager. Lat- laurels. Their objective is to produce bearing and Austria’s Miba Gleitlager. ABM stands for er, this bi-metallic strip is used for manufactur- materials in the future that set the benchmark “Advanced Bearing Materials” – and the name Innovative ing high-quality plain bearings and bushings for application in engines of all types, from the says it all: the company, which employs about which are employed in the most demanding smallest gasoline-powered engine to the 45 people, produces bi-metallic strips consist- environments. “ABM’s customers utilize the largest medium-speed diesel power units. The ing of a bronze or brass alloy with a steel back- materials mostly for automotive applications, joint venture is certainly focused on this goal. ing. Made using a special casting technique, but also for large industrial engines and trans- After all, it brings together the technological “the process can produce both leaded and materials missions applications as well”, notes Andrew expertise of both parent companies, whose lead-free materials covering a full range of Bowen, 53, head of KS Gleitlager’s Business know-how spans this application range. New growth in the new world KS Gleitlager consolidates production in North and South America at its Celaya, Mexico plant

tho Celaya. In January 2012, the starting gun sounded for the production of high-quality plain bearings in Celaya, Mexico. Before, KS Gleitlager made these products – predominantly in- tended for its markets in North and South America – in Brazil and the United States. As a pro- duction location, Mexico has a lot going for it: the country is situated more or less at the heart of the American landmass, and is a member both of the North American Free Trade Area (Nafta) and its Latin American opposite number, Mercosur – to say nothing of the fact that the country was already home to its sister company, KS Kolbenschmidt. However, the existing space wasn’t large enough for the growing volume of plain bearings, so a new plant had to be built in the im- mediate vicinity, which also houses Pierburg Pump Technology’s production operations. With around 7,000 square meters of produc- sorbers and door hinges but also in brake and tion space, the new facility produces plain bear- steering systems as well in connecting rods, etc.”, ings, bushings, and thrust washers. Apart from adds the plant chief. Furthermore, products from steel, all of the materials have been developed Celaya are found in motors and drive shafts. by KSPG, stresses plant chief Jan Abmeier. “When Around 80 percent out of the 38 million plain it comes to plated products, we produce variants bearings produced in Mexico in 2012 went to made of steel and aluminum, steel and bronze, North and South America, with each market ac- as well as Permaglide, a multi-layered material counting for half this fi gure. The remaining 20 made of steel and sintered bronze with a polymer percent was exported to Europe, where Volvo’s coating,” explains the 46-year-old mechanical truck unit is the main recipient. “We’re talking engineer. In total, the plant produces around 100 here about plain bearing bushings made of steel different plain bearing variants. In terms of form, for big diesel engines. Celaya is KS Gleitlager’s size, material and many other aspects, the par- competence center for these bushings”, states ticular features of the products vary depending Abmeier; neither of the two German plants – St. on the required characteristics. Leon-Rot and Papenburg – nor the Takwe facility At present, the materials still come from Ger- in India, makes them. many. Starting in 2014, however, a fi rst variant will Last year, Celaya generated sales of approxi- be made in Mexico, “a lead-free, PTFE-based Per- mately 5.5 million – and the plant expects to maglide material”, declares Abmeier. Lead-con- see sales rise by 30 percent per annum over the taining materials will no longer be used in Celaya, next few years. When it comes to earnings, more- owing to the fact that for environmental reasons over, Jan Abmeier and his 75 employees have big they have been progressively replaced by lead- plans too: “In the short and medium term, we free materials for many years now. “KS Gleitlager want to see operating result ratios in North and offers a wide array of lead-free materials that have South America in the double-digits”, he insists. equal or better performance characteristics”, ex- In order to achieve this, besides reaching its am- plains the plain bearings expert. The Celaya plant bitious growth targets, the Celaya plant’s inter- primarily supplies customers in the automotive nal processes will have to be further optimized, With around 7,000 square industry. These include major automakers like coupled with a sharp reduction in transport meters of production space, Chrysler, General Motors, and Volkswagen, but costs. After all, production in Mexico only began the new facility in Celaya also numerous parts suppliers. “Our plain bear- in January 2012, and certain external services produces plain bearings, ings are mostly used in transmissions, shock ab- still have to be sourced in the US at high cost. bushings, and thrust washers.