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SAF-HOLLAND receives a major US order for axle systems with integrated disc brake technology

SAF-HOLLAND receives a major US order for axle systems with integrated disc brake technology

Luxembourg, May 23, 2018 - SAF-HOLLAND has received another pioneering order in the US for the supply of trailer axle systems. The Company will start delivering fully dressed axle systems combined with modern disc brake technology to North Americas largest rental fleet operator, XTRA Lease.

With approximately 80,000 trailers, XTRA Lease is the largest supplier of trailers for renting and leasing in the US. Until now, SAF-HOLLAND has been supplying the mechanical suspension and associated slider boxes for the trailer chassis. In the future, the complete SAF-HOLLAND axle system with the latest generation of P-89 wheel end technology featuring disc brakes will also be integrated into the chassis system.
 

The initial delivery volume is for approx. 6,000 trailers. Production is set to begin as of June 2018 with full ramp-up occurring until end of the year. SAF-HOLLAND expects this order to contribute noticeably to sales as of early 2019 and forecasts up to USD 20 mn in annual sales in 2019.
 

SAF-HOLLAND views this as a lasting confirmation of the technological migration in the US from the widespread use of drum brakes to disc brake technology. Whereas the vast majority of trailers in Europe are already on the road with the generally lighter, more cost-efficient and powerful disc brakes, the equipment rates in the US are currently just above 10%. Market experts anticipate that this application will also see increasing interest from large fleet operators in North America, leading to significant growth rates in the years ahead.
 

"This order is groundbreaking in character and, in our view, may be the "game changer" in North America. The trend towards disc brake technology is now picking up tremendous momentum in the US," explains SAF-HOLLAND CEO Detlef Borghardt, adding: "As a pioneer of this technology in Europe, we are the only supplier in North America with nearly two decades of know-how and experience in integrating disc brakes into axle and suspension systems. In addition to offering high performance, our axle system with the integrated P-89 disc brake module contributes equally to bringing down weight as well as the operating costs at freight forwarders."
 

CFO Dr. Mathias Heiden adds: "The use of fully dressed axle systems combined with highly efficient disc brake technology also helps us increase our sales per vehicle. We believe we are well positioned in this structurally growing segment and expect SAF-HOLLAND to generate significant organic sales growth potential in the coming years."