MANN+HUMMEL takes over Filter Manufacturer Bengbu Haoye in China - Business expansion in China
Strategic acquisition: MANN+HUMMEL expands its market presence in the Chinese Aftermarket with the acquisition of Bengbu Haoye. The filter manufacturer employs more than 500 people in the design, production and sale of filters and filter elements for the aftermarket and local OEMs.
Ludwigsburg/Shanghai, 29th August, 2012 – On 29th August 2012, MANN+HUMMEL signed an agreement with Bengbu Haoye Filter Co., Ltd to take over 100% of the filter manufacturer based in the “China Filter City” – Bengbu, Anhui Province. The deal is subject to the approval of the relevant government authorities. Bengbu is about 450 km northwest of Shanghai, where the Chinese headquarter of the German-based MANN+HUMMEL group is located.
For more than 16 years, Bengbu Haoye has specialized in supplying various types of filters primarily to the automotive aftermarket. In 2011 the company generated a turnover of around 13 million Euros.
MANN+HUMMEL has offered leading filtration technology to both automotive and industrial OE and aftermarket customers in China since 1996. In the independent aftermarket, the filtration specialist meets the customer’s requirements through the premium MANN-FILTER brand products with clearly defined OE specification.
“With the acquisition of Bengbu Haoye brand and its market access we will enhance our range of products and complete our coverage for local vehicle applications”, explains Josef Parzhuber, MANN+HUMMEL Group Vice President and CEO Asia Pacific. “China is a market with continued dynamism and growth opportunities. Leadership in filtration requires not only the latest technologies but also a differentiated product portfolio and quick time-to-market for specific customer segments.”
The acquisition of Bengbu Haoye is a logical step in the MANN+HUMMEL expansion strategy in China. A local well-known brand with focus on domestic applications together with an extended product range and well developed distribution network offers a good strategic fit to the established MANN-FILTER footprint in China.
In addition to the new aftermarket portfolio, MANN+HUMMEL aims to offer from its new production base in Bengbu competitive and market-specified solutions in particular to local OEM customers.
“Haoye is like my baby. I am really happy to be able to pass on the company and the brand to a well known global filtration specialist. I believe this decision will accelerate the growth of the company with good future prospects. I appreciate the company culture of MANN+HUMMEL and will continue to run the business with the entire management team”, noted Bengbu Haoye’s founder and Managing Director Mrs. Fang Wen at the contract signing.
China is one of the strategic growth markets for MANN+HUMMEL. MANN+HUMMEL has already four production bases in China: Changchun, Shanghai, Jinan and Liuzhou. The acquisition of Bengbu Haoye represents a major step to enlarge the group’s footprint in the mainland. In the last decade, MANN+HUMMEL's Chinese business increased significantly. In 2011, around 1,100 employees in China generated about half of the group's Asian turnover. It is the goal of the group to continue the Chinese-German success story and to increase the Asian share of the Group sales from 17% today to 25% by 2018. By then group sales are expected to realise at least 3.4 billion Euros.
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The MANN+HUMMEL Group is a leading global expert for filtration solutions and development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing 14,338 people at more than 50 locations worldwide, the company achieved turnover of about 2.5 billion euros in 2011. The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and cylinder head covers made of plastic with many integrated functions for the automotive industry, as well as filter elements for vehicle servicing and repair. For general engineering, process engineering and industrial manufacturing sectors the company’s product range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration and filter systems.