Continental to take full ownership of emissions JV

Continental has announced its intention to purchase the outstanding shares in the 50/50 Emitec Gesellschaft für Emissionstechnologie mbH joint venture it operates with partner, Worcestershire-based GKN plc. Once the acquisition of the 50 per cent share currently held by GKN is complete, the business will be integrated into Continental’s Powertrain division. With the acquisition of Emitec and the deal’s approval, Continental will emerge as a supplier of exhaust aftertreatment systems. Continental has not stated the price it will pay for the remaining share in Emitec.

Based near the former West German capital of Bonn, emissions technology supplier Emitec was founded in 1986. Its product portfolio includes metal catalytic converters, particle filter components and dosing modules for selective catalytic reduction (SCR). In its close to three decades of business, the company has produced more than 170 million of these components. Emitec has a workforce of approximately 900 employees at locations in Europe, the United States and Asia. SCR, which is set to become increasingly important in the future, reduces nitric oxide in emissions by injecting a urea/water solution into the exhaust system. Ever more stringent emissions limits in the years ahead will make it necessary that virtually all diesel vehicles be equipped with a SCR system.

“The intended integration of Emitec into the Continental Corporation is a strategically significant step,” said José Avila, member of the Continental Executive Board and president of the Powertrain division. “We will now be able to supply those of our customers requiring all-in-one solutions in the key growth market of exhaust aftertreatment. Above and beyond this, the acquisition will enable us to realise synergies between the Powertrain Division and Emitec, touching on everything from development and production through to purchasing.”

“Emitec has been a great investment for GKN. It is a good business that will now benefit from full connection with Continental’s emissions technologies. I would like to thank everyone in Emitec and offer them my best wishes as the business enters this new phase,” added GKN chief executive Nigel Stein.

Continental has a broad product portfolio for exhaust aftertreatment involving various business areas. In the case of SCR solutions, for example, business units within the Powertrain Division develop and produce the injection system – including sensors, injectors, control devices and software – while the ContiTech division contributes the heatable hose lines, and Emitec the dosing module. The latter is a transfer unit connected to the urea tank via the flange. The underlying technology parallels that found in the gas and diesel transfer systems offered by the Powertrain division’s Fuel Supply business unit. The envisaged Emitec acquisition will thus yield synergy potential in conjunction with these components. And whereas Emitec shares responsibility for metal substrates for catalytic converters, metal diesel particulate filters, and SCR dosing modules, Continental Powertrain will be able due to its wide product portfolio to offer emissions reduction technologies as complete systems to the customers in the future – from configuring on through to its integration, use and calibration.

Emitec develops and produces the SCR dosing module at its plant in Faulquemont, France, which went into operation in 2012. The company’s other production locations are in Lohmar and Eisenach in Germany, Fountain Inn, South Carolina, in the US, and Pune in India. Other development and testing centers are located in Germany and Denmark. Emitec also has branch offices in Shanghai, Tokyo, Seoul and Rochester Hills, Michigan (near Detroit). Its customer roster includes all big-name car, truck and motorcycle manufacturers. In the off-road-sector, it supplies producers of tractors, agricultural implements and construction machines.

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