SAF-HOLLAND wins another large order for truck suspension systems in China
Luxembourg, February 11, 2016 - This order and an earlier one from the same manufacturer received in December 2015 will make a combined annual contribution of up to EUR 23 million to Group sales after ramp up. The contract period is expected to span over 10 years and render sustainable contributions to Group sales. Production at the SAF-HOLLAND subsidiary Corpco, China is set to begin in 2018.
"The fact that we have won another large reference contract for truck suspension systems within a couple of months shows that our Corpco subsidiary is on its way to making a name for itself in the market for truck suspension solutions after already establishing itself as a supplier for bus air suspension systems. We also benefit from the growing technological demand placed on these products and the discernible trend towards transportation solutions that provide greater comfort and are helping to prevent the road network from being damaged. Carried by our new projects and market share gains, we are well on track to gradually turn our sales targets for China under our Growth Strategy 2020 into a reality", said CEO Detlef Borghardt.
SAF-HOLLAND has so far generated just a single-digit percentage share of Group sales in China. The Group in that region focuses on manufacturing bus air suspension systems at its subsidiary Corpco in Beijing as well as trailer axle systems at its site in Xiamen.
SAF-HOLLAND considers itself well positioned in China in the growing and technologically more advanced segment of electric buses. The Company sees significant opportunity for its suspension systems, which specifically cater to the space and clearance requirements of the sizable battery packs. At the same time, the Chinese subsidiary is also expanding its product range by adding efficient, lightweight suspension system designs for mid-sized to heavy trucks.
There should be some interesting opportunities emerging with the anticipated amendment to China’s regulations for heavy-duty vehicles (GB 1589), including standardization and efficiency requirements as well as the reduction of the maximum gross vehicle train weight, which should drive demand for new vehicles and lightweight solutions in particular.
SAF-HOLLAND S.A., located in Luxembourg, is the largest listed supplier to the commercial vehicle market in Europe. With sales of approximately EUR 960 million in 2014 and more than 3,000 employees, the company is one of the world’s leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear and is marketed under the brands SAF, HOLLAND, and Neway. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEMs) on six continents. The Aftermarket Business Unit sells spare parts to the Original Equipment Service (OES) of the manufacturers and to end customers and service centers through its own extensive global service and distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide.