Supplier snapshot: Kolbenschmidt pierburg. (WIP).

With headquarters in Germany (in Neuss), Kolbenschmidt Pierburg AG--a manufacturer of engine air management systems and components, pumps, pistons, and related products--has operations around the world, including facilities in North America, a new tech center in Yokohama, Japan, and operations in China, including a new joint venture that will be involved in the production of engine air management components and modules, pumps, and cylinder heads (its first JV is for piston production). Although it is based in Germany, all told, more than half of its products are manufactured outside that country. Globalization is the goal. Dieter G. Seipler, chairman of the Executive Board of Kolbenschmidt Pierburg, says, "In 2005, Germany, Europe and America each should contribute equally 30% of our overall revenues; Asia will generate about 10%." Now, about 77% of all the business is in Europe. (2000 revenues: 1.8-billion Euros.)

Even though the U.S. market will likely be down this year, Seipler anticipates that the company will be able to balance that downside through the strength of business in Europe. But there is anticipated growth in the U.S.

For example, the company presently supplies Ford with 1-million complete piston modules per year; that number may rise to 9-million per year by 2004. One consequence of such growth would be, Seipler says, a $50-million investment in a new production line in North America.

One of the ways that they expect to achieve organic growth in North America--although he admits that they're looking at acquisitions and other ventures--is through the introduction of technology that is comparatively new to the market. This technology will address some of the needs to increase fuel efficiency [one thing that they've learned through designing and building engine components and systems in Europe is that Fuel efficiency is key when prices are high] and to reduce emissions.

For example, in its plant in Fountain Inn, South Carolina, it is producing electronic throttle control systems; the systems convert a signal from an engine control unit into a mechanical throttle position, thereby controlling engine speed for fuel efficiency and emissions reduction. GM is using this on its new Vortec engine. The plant has the capacity to produce 800,000 units per year, and Seipler says they're thinking about adding a second line in the plant. Also being produced in Fountain Inn is a secondary air system; it blows fresh air into the exhaust gas flow during warm up, thereby lowering emissions [CO and HC levels]. Right now, this is being supplied For the BMW XS and the VW New Beetle. There is certainly a wide range of possibilities here.

Another product that Kolbenschmidt Pierburg produces that can be helpful on the fuel and emissions fronts is an electric water pump for the main cooling circuit; as it runs independently of the vehicle's engine speed and is continually adjusted, it efficiently meets cooling requirements.

Looking beyond the internal combustion engine, the company has developed a variety of components and systems for fuel cells [e.g., hydrogen flow meter; hydrogen recirculation pump). Seipler observes, "Even though this new technology may not replace combustion engines in the near future, we are confident that power trains with fuel cells will become an alternative to traditional systems by 2010."