Automotive supplier BOGE Rubber & Plastics achieved record sales
BOGE Rubber & Plastics, global leader in the field of vibration control and plastics solutions in the automotive industry, continues to set its course for growth. The automotive supplier achieved in the fiscal
BOGE Rubber & Plastics, global leader in the field of vibration control and plastics solutions in the automotive industry, continues to set its course for growth. The automotive supplier achieved in the fiscal year record sales of around EUR 740 million. This means an increase of almost 8 % compared to last year’s figures. For comparison – the economy grew by 3.1 % in 2015 worldwide and the global automotive production by 1 % to 90.5 million cars and trucks. “We are growing faster than the global automotive production. The mainstay of this development is our global production network with locations in the most important markets and our innovative strength,” characterized Dr. Torsten Bremer, CEO of BOGE Rubber & Plastics as being the most important growth drivers during the annual press conference on Friday, April 29 in the company’s headquarters in Damme, Lower Saxony.
Investments also reached a record level at BOGE Rubber & Plastics with EUR 55 million in the fiscal year 2015. This represents an increase of 51.5 % compared to the previous year. "Our Chinese owner is banking on continuity and reliability. He supports our growth strategy. All investment commitments made in 2014 in the course of the sale of the Rubber & Plastics division of ZF Friedrichshafen AG to the Zhuzhou Times New Material Technology Co., Ltd. (TMT) are being realized," emphasized CEO Dr. Torsten Bremer during the press conference. For the automotive supplier it was the first full fiscal year under the new Chinese owner.
Successful German-Chinese exchange program
Great importance was attached to a close and trustful German-Chinese cooperation right from the beginning on both sides. Thus, for example in 2015, 50 managers and employees from different functions of the Chinese owner TMT participated in the management exchange program “Learn from BOGE” (“Lernen von BOGE”) lasting several weeks in Germany.
Largest investment projects 2015: Pedal modules and engine mount system
Around 40 % (EUR 293.7 million) of the worldwide turnover of EUR 740 million were generated in Germany; 22.5 % (EUR 166.2 million) in North America and 15 % (EUR 116.6 million) in Asia / Pacific. The number of employees rose by 115 to 3,765 - in particular at the locations Damme, Trnava and Shanghai.
The automotive supplier mainly invested in the fiscal year 2015 in large-scale projects at the German sites Damme and Simmern and the construction of a second factory building in Trnava (Slovakia). The investments in the locations in Hebron (USA) and Shanghai (China) ranked on the second place. The largest single investment project 2015 was the construction of a production hall, including completely new machines and equipment at the Damme location for the production of plastic pedal modules. Here, about EUR 12 million were invested in 2015 alone. The total investment volume for this project will amount to nearly EUR 25 million. The investment includes inter alia two fully automated assembly lines and 10 injection molding machines. 17 robots are intended for finishing and assembly. The commissioning of the assembly lines has already taken place.
The BOGE Rubber & Plastics Group expects additional annual sales of up to EUR 60 million thanks to this large-scale project. The official inauguration of the major project "pedal modules for MQB platform” will take place this summer. Damme location with a turnover of around EUR 249 million and more than 1,000 employees is the largest site and headquarter of the automotive supplier.
Another major project of the past year was the engine mount system MLBevo (Modular Longitudinal toolkit of the second generation) at the location Simmern (Hunsrueck). BOGE produces for this platform hydraulic, dip, switchable and active engine mounts in 36 versions for the automobile manufacturer Audi. The first vehicle of this platform is the new Audi Q7. Investments in this project amounted to approx. EUR 7 million in 2015.
Further expansion of technological leadership
The high investment volume should also contribute to further expanding the position of BOGE Rubber & Plastics as a technology and innovation leader in many product areas. One example of this are the active engine mounts which ensure a significantly improved vibration and noise behavior compared to conventional engine mounts. In addition, the plastic lightweight components are increasingly successful on the market, for example in the field of pedal modules. Lightweight design is in the focus of the automobile manufacturers to reduce fuel consumption. Products from BOGE Rubber & Plastics can make a measurable contribution to achieve this goal.
Outlook 2016: Foundation of BOGE Rubber & Plastics WUXI and BOGE Rubber & Plastics Zhuzhou
In the fiscal year 2016, again a similarly high investment volume is scheduled as in 2015. About half of the investment volume is allotted to the German locations and a quarter to the Trnava location in Slovakia.
Based on a projected global economic growth of 3.1 % and an increase in worldwide automobile production (cars and trucks) from 3.2 % to about 94.2 million units, BOGE anticipates sales growth of up to 6 % in 2016.
In the worldwide fastest growing automotive market China, the factory which was founded in 2008 in Qingpu near Shanghai has reached its capacity limit. "In order to continue to successfully meet the market growth of the automobile market in China, we have set the right course for additional capacity," said Dr. Torsten Bremer. BOGE will strengthen its market position and increase the market share also of plastic and powertrain suspension applications by establishing a new plant in China. The new company BOGE Rubber & Plastics WUXI has already been founded. Start of construction in Wuxi (about 100 kilometers from the production site in Qingpu) is expected to be in the autumn of 2016. The start of production is planned for 2017.
The integration of all automotive activities of the new parent company in BOGE Rubber & Plastics Group also is in full swing. Thus, BOGE will now focus on all global automotive topics, and the parent company TMT focuses on business such as railway and industrial applications. This involves the intended integration of a previous location of the new parent company (in Zhuzhou, China) into the BOGE Rubber & Plastics Group. The new company BOGE Rubber & Plastics Zhuzhou has already been founded. From July 2016, this company will also officially belong to BOGE Rubber & Plastics in accordance with the legal requirements. Thus, the BOGE Rubber & Plastics Group already includes three locations in China soon.