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AUTOMOTIVE FILTERS

Optimizing performance and minimizing environmental impact50 case studies from international business

BY MARK PURVIS

INInternational

Newsletters Ltd

©2008 International Newsletters Ltd

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THE AUTHOR

Mark Purvis has spent 18 years as a journalist, editor and publisher specializing on pumps, filters andother industrial sectors. He was publisher for many years of the international engineering magazinesFiltration & Separation and World Pumps.

Since 2006 he has been concentrating on freelance writing and editorial projects and is presently apartner in Blue Zulu Marketing, a family-run freelance marketing and publishing consultancy based inOxfordshire, UK. He has a degree in chemistry from the University of Oxford.

THE PUBLISHER: INTERNATIONAL NEWSLETTERS LTD

International Newsletters Ltd is the world’s premier publisher on technical textiles. As well aspublishing Technical Textiles International, the only magazine that covers the whole of the industryworldwide, International Newsletters publishes three monthly newsletters – Advances in TextilesTechnology, Medical Textiles and Smart Textiles and Nanotechnology – and runs the single largest web-siteof technical textiles-related information, Technical Textiles Net (http://www.technical-textiles.net).International Newsletters also organizes the series of seminars, How to Enter Technical Textiles Markets.

In the field of advanced materials, International Newsletters publishes five newsletters – AdvancedComposites Bulletin, Advanced Ceramics Report, Biomedical Materials, High Performance Plastics and NewMaterials Asia – and hosts the web-site Performance Materials Net (http://www.performance-materials.net).

Other reports available from International Newsletters Ltd include:

• World Markets for Technical Textiles to 2012• Medical and Hygiene Textiles: Initiatives for Growth (now in second edition)• Smart and interactive textiles: a market survey• Proceedings of the How to Enter Technical Textiles Markets

I: Stratford-upon-Avon, UK (November 2002); II: Prague, Czech Republic (February 2004);III: Ghent, Belgium (November 2005); IV: Porto, Portugal (March 2007).

• CIRFS Market Forecasts: World Markets for textured yarns to 2010• CIRFS Market Forecasts: World markets for nonwovens and other unpun products to 2010• CIRFS Market Forecasts: Natural and man-made fibres in China, Hong Kong and Taiwan to 2010

ACKNOWLEDGEMENTS

The author would like to express his thanks to the many companies and individuals that have providedinformation, documentation, ideas and opinions for use in the research, preparation and publication ofthis book. Information used has been the most current made available to him at the time of writing.Industry and other material, corporate data and other facts and issues are subject to frequent, inevitableand sometimes rapid change across such a major international sector. The non-factual opinions,conjectures and analysis in this book are the author’s own. It is not intended that the profiles of thecompanies are absolutely exhaustive in their content and detail, but rather that they present a balancedoverview of each organization. While every effort has been made to ensure that the contents of this bookare well researched, the author and publisher do not accept responsibility for any loss arising from errorsor omissions, or from decisions based on material contained herein.

COPYRIGHT NOTICE: ©2008 International Newsletters Ltd. All rights reserved. The contents ofthis book, either in whole or in part, may not be reproduced, stored in a data retrieval system, ortransmitted, in any form whatsoever or by any means, electronic, mechanical, photocopying, recordingor otherwise, without written permission of International Newsletters Ltd.

Printed in the UK by ABP LtdISBN: 978-0-9552270-3-5

http://www.technical-textiles.net


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FOREWORD

As well as the Introduction, Contents listing and the Company Profiles, all of which arehopefully self-explanatory, this report is divided into a number of distinct sectionsdesigned to help readers find and understand the information they require readily:

• this Foreword sets out the conventions and styles used throughout the report;• the Glossary defines and explains the meaning of terminology, technical and

financial, as few if any readers can be expected to be familiar with both;• the Company index helps the reader find references to all of the organizations

listed in the report, as well as providing cross-references for the 50 that areprofiled in depth;

• the List of tables directs readers to the key financial statistics of theprofiled companies.

The top-left corner of each table specifies the currency of the figures quoted. Otherdata is identified by the inclusion of the unit in the header row or column of theappropriate part of the table. Footnotes provide qualifying information on all or partof the tables data.

Throughout the report the term billion should be taken to mean 1000 million; trillionmeans one million million.

All years refer to the company’s financial years unless otherwise stated.

Following standard accountancy practice, figures quoted in brackets are negative; forinstance, a loss of (US$4 million).

Where currency conversions are noted in brackets in the text, these figures areapproximate and the conversion rate used was that prevailing at the time the originalinformation was announced.

Finally, it is beyond the scope of this report to attempt to describe the many anddetailed environmental standards and legislation that have been and are due to beenacted around the world. As a starting point for a comprehensive treatment of globalemissions regulations, including details of the emissions levels permitted and thetimetable for enforcement of the standards, readers are referred to the followingInternet resource: http://www.dieselnet.com/standards


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CONTENTS

Overview of Automotive Filtration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

COMPANY PROFILES3M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11ACDelco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Ahlstrom Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Alps Manufacturing Co Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Amsoil Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Awa Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22BASF Catalysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Bekaert. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Bosch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Champion Laboratories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Clarcor Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Corning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Cummins Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Cummins Filtration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Cummins Emission Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Denso Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Donaldson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47DuPont Separation Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Eberspächer Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Emitec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Faurecia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Fiberweb plc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Filtertek Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Fram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Freudenberg Nonwovens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Helsa-Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Hengst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71HJS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Hollingsworth & Vose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Ibiden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Japan Vilene. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Johns Manville. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82K&N Filters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85Kimberly-Clark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Lydall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Mahle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Mann + Hummel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Neenah Gessner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100NGK Insulators Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102Parker Hannifin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Puradyn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107Purolator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109


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Ryco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Sefar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115Sogefi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117SPX Filtran . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Tenneco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123Tokyo Roki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126Toyobo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128Toyo Roki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130Toyota Boshoku . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Wix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Company index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145


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LIST OF TABLES

Table 1: Automotive industry production figures by country . . . . . . . . . . . . . . . . . . . 2Table 2: Top 20 automobile manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

KEY FINANCIAL DATA3M (2005–2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Ahlstrom (2004–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18BASF Chemicals (2006–2007) [BASF Catalysts] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Bekaert (2005–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Bosch (2002–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30United Components Inc (2004–2007) [Champion Laboratories]. . . . . . . . . . . . . . . 33Clarcor Inc (2004–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Corning (2004–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Cummins Inc (2004–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Denso Corp (2005–2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Donaldson (2003–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49DuPont Safety and Protection (2004–2007) [DuPont Separation Solutions] . . . . . . 51Eberspächer (2005–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Faurecia (2005–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Fiberweb (2005–2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Honeywell International Inc (2002–2007) [Fram] . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Freudenberg (2002–2006) [Freudenberg Nonwovens] . . . . . . . . . . . . . . . . . . . . . . 68Ibiden (2005–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Japan Vilene (2003–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Kimberly-Clark (2004–2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Lydall Inc (2004–2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Mahle Group (2002–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94Mann + Hummel Group (2004–2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Neenah Paper Inc (2006–2007) [Neenah Gessner] . . . . . . . . . . . . . . . . . . . . . . . . 101NGK Insulators Ltd (2003–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Parker Hannifin Corp (2005–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106Puradyn Filter Technologies Inc (2005–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108GUD Holdings Ltd (2006–2007) [Ryco] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Sogefi SpA (2005–2007). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119SPX Corp (2004–2007) [SPX Filtran] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122Tenneco Inc (2004–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Toyobo Co Ltd (2003–2007) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129Toyota Boshoku (2006–2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Affinia Group Inc (2005–2007) [Wix] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136


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OVERVIEW OF AUTOMOTIVE FILTRATIONThe automobile is the primary mode of transport for the majority of the world’spopulation and the manufacture, assembly, servicing and operation of these vehiclesrepresents a significant proportion of the industrial economy globally. Manufacturingalone represents an annual global turnover of around €2 trillion. The worldautomotive industry produced around 50 million automobiles and 20 millioncommercial vehicles in 2006, according to the global industry body the InternationalOrganization of Motor Vehicle Manufacturers; these figures don’t include constructionequipment, off-road vehicles and agricultural machinery (see also, Table 1: Automotiveindustry production figures, page 2; Table 2: Top 20 automobile manufacturers, page 3).

Filters play a significant role in three major aspects of the car’s operation:

• ensuring the gases and fluids that enter the engine are clean;• ensuring the gases leaving the vehicle are clean; and • ensuring the environment within the vehicle is clean.

Each application is different in the complexity of technology involved, the maturity ofthe market and the future growth prospects.

KEEPING THE ENGINE CLEANEngine oil, air and fuel filters are, in general, relatively simple devices designed toprevent dirt from entering the working parts of the engine. They are manufactured inlarge volumes and sold largely on price. Oil and air filters need regular replacementensuring a huge aftermarket for replacement parts. Strategies to increase profitmargins lie in offering premium brands that promise improved engine performance orlonger service intervals. Most of these filters are actually manufactured by a handful ofcompanies who sell only a fraction of their products under the companies’ own labels.The rest are either made specifically for other suppliers or are simply rebranded for aparticular retail brand.

KEEPING THE DRIVER CLEANThere has been a trend over many years for automobiles to offer higher levels ofcomfort for drivers and passengers. Heaters and air vents have been superseded by airconditioning and automatic climate control. One aspect that has recently gainedprominence is the air quality within the car. The air circulated within a vehicle cancontain dust, fuel fumes, allergens (such as pollen) and odours. Cabin air filters canremove dust and particulates, and the addition of activated carbon allows fuel fumesand odours to be removed from the cabin air. Some manufacturers have even gone tothe lengths of including air fresheners to introduce pleasant fragrances into the cabin.


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Cars Light commercial vehicles

2006 2005 %change 2006 2005 %change

Argentina 263120 182761 44.0% 145754 116444 25.2%

Australia 270000 316414 (14.7%) 55510 72571 (23.5%)

Austria 248059 230505 7.6%

Belgium 846400 895109 (5.4%)

Brazil 2092029 2011817 4.0% 379195 365636 3.7%

Canada 1389536 1356271 2.5% 1107831 1266609 (12.5%)

China 5233132 3931807 33.1% 1057373 983931 7.5%

Czech Republic 848922 596774 42.3% 1077 1220 (11.7%)

France 2723196 3112961 (12.5%) 386512 382201 1.1%

Germany 5398508 5350187 0.9% 202431 193037 4.9%

Hungary 187633 148533 26.3%

India 1473000 1264111 16.5% 210520 164740 27.8%

Indonesia 206321 332590 (38.0%) 49964 99536 (49.8%)

Iran 725000 725000 0.0% 88000 88000 0.0%

Italy 892502 725528 23.0% 272205 269749 0.9%

Japan 9756515 9016735 8.2% 1017245 1047498 (2.9%)

Malaysia 385000 404571 (4.8%) 117720 137977 (14.7%)

Mexico 1097619 846048 29.7% 858164 759800 12.9%

Poland 632300 540100 17.1% 76100 67700 12.4%

Portugal 213399 189040 12.9% 9379 26725 (64.9%)

Romania 201663 174538 15.5% 11410 20078 (43.2%)

Russia 1177918 1068511 10.2% 218252 192883 13.2%

Slovakia 295391 218349 35.3%

South Africa 334482 324875 3.0% 219618 172522 27.3%

South Korea 3489136 3357094 3.9% 240206 227241 5.7%

Spain 2078639 2098168 (0.9%) 619444 578989 7.0%

Sweden 288583 288659 0.0%

Taiwan 211306 323819 (34.7%) 86529 117437 (26.3%)

Thailand 315170 277562 13.5% 965740 829574 16.4%

Turkey 545682 453663 20.3% 390790 376047 3.9%

Ukraine 274860 196722 39.7% 10700 11322 (5.5%)

UK 1442085 1596356 (9.7%) 186718 186948 (0.1%)

USA 4366220 4321272 1.0% 6435825 7202978 (10.7%)

TABLE 1: AUTOMOTIVE INDUSTRY PRODUCTION FIGURES BY COUNTRY

(Source: International Organization of Motor Vehicle Manufacturers’ Correspondents Survey;http://oica.net/category/production-statistics).

*It is beyond the scope of this report to attempt to describe the many and detailed environmental standards andlegislation that have been and are due to be enacted around the world. As a starting point for a comprehensive treatmentof global emissions regulations, including details of the emissions levels permitted and the timetable for enforcement ofthe standards, readers are referred to the following Internet resource: http://www.dieselnet.com/standards

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KEEPING THE PLANET CLEANThe application of filter technology toautomobile exhausts is a recentphenomenon and a much morechallenging one. Social and politicalpressures are driving motorists to reducethe emissions from their exhausts. This iscodified in progressive legislation aroundthe world which dictates strict limits onthe quantities of specific constituents ofexhaust gases*. Catalytic converters arenow universally applied to reduceemissions from petrol engines but dieselengines suffer from an additional potentialpollutant in the form of particulatematter, released with the exhaust gases.Removal of this particulate matter ispossible using diesel particulate filters,which combine catalyst and filtrationtechnologies in a sophisticated and highvalue component. The supply market isnot yet well established and many newplayers are entering this market, which isexpected to grow rapidly as diesel vehicleuse increases globally.

INDUSTRY STRUCTUREThe automotive manufacturing industry isdominated by a small number of large, mostly global players and this group of originalequipment manufacturers represents one market for the manufacturers of automotivefilters. Filter manufacturers also sell their products to the vehicle manufacturers forresale to franchised dealers and the public as original equipment spares. A final routeto market is the aftermarket avenue, whereby the filter manufacturer sells its productsvia service companies and parts dealerships under its own brand name, under thebrand name of the reseller or under the brand name of a third party. This leads toconsiderable confusion about the true identity of the manufacturer of a specificproduct. However, rebranding filters manufactured by other companies allows a filtersupplier to offer a more complete range of products to its customers, andcompleteness of coverage is a vital requirement.

Filter manufacturers source the materials that actually perform the filtration function(the filtration media) from specialist filtration media suppliers. Increasingly the lesssophisticated cellulose-based filter media are sourced from low-cost countries, whilethe major specialist filter media companies offer premium products incorporatingsynthetic materials for enhanced performance properties and extended service life.

GroupNumber of

vehicles in 20061 Toyota 68002282 General Motors 57080383 Volkswagen 54298964 Ford 38006335 Honda 35497876 PSA 29614377 Nissan 25125198 Hyundai 22313139 Renault 208583710 Suzuki 200431011 Fiat 175367312 BMW 136683813 DaimlerChrysler 127515214 Kia 118187715 Mazda 116964016 Mitsubishi 100897017 Daihatsu 90593218 Avtovaz 76562719 Chrysler 71029120 Fuji 507552

Source: International Organization of Motor VehicleManufacturers’ Correspondents Survey;http://oica.net/category/production-statistics).

TABLE 2: TOP 20 AUTOMOBILE MANUFACTURERS


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Some filter media companies have developed their own filter ranges, notably in thearea of cabin air filtration.

NORTH AMERICAThe problems of the big three US automobile makers have been well documentedin recent years and these difficulties have been shared by their suppliers. Chrysler(Mopar), Ford (Motorcraft) and General Motors (ACDelco) all have their ownbrands for components including filters (we profile General Motors’ ACDelco inthis report). Many of these filters are sourced from one of the big four US filtermakers: Wix, Champion Laboratories, Fram and Purolator. ACDelco does stillmaintain some filter manufacturing capacity but the company does not reveal thescale of its manufacturing operations nor the extent to which its product range isoutsourced. The major original equipment manufacturers also equip vehicles withfilters bearing the filter maker’s brand.

The four major filter makers also compete strongly for the independent aftermarketbusiness which caters for independent service companies and do-it-yourselfmaintenance. These routes are serviced by wholesalers and retail networks, and thefilter makers rely heavily on sales to national networks such as the NationalAutomotive Parts Association and Carquest. Smaller players also have a role in thissector, offering the motorist the option of improved performance in return forspecifying a premium product.

The market for diesel particulate filters in the USA is at present largely confined totrucks, off-road vehicles and agricultural equipment, because of the lack of penetrationof diesel-powered passenger vehicles. (This is in contrast to Europe where more than50% of automobiles are diesel powered.) The use of diesel fuel is expected to increasein North America because of the greater fuel economy of diesel engines, howeverprogress has been restricted by two factors:

• the lack of availability of high quality diesel fuels; and• the lack of regulatory controls on emissions of particulate matter and

oxides of nitrogen.

The diesel quality issue has now been addressed and technologies to control particulatematter and emissions of oxides of nitrogen are becoming increasingly available.

EUROPEThe mass-market for automobile filters in Europe is dominated by Sogefi, which hasassembled a strong collection of brands from throughout Europe as well as owning therights to the Fram brand outside North America. It is the dominant player in theindependent aftermarket. However, Europe is also home to a number of global filtermakers specializing in sales to original equipment manufacturers. These include Mann+ Hummel, Mahle and Hengst. These companies also offer premium products to theaftermarket under their own prestige brands.


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The diesel particulate filter market has grown quickly in Europe, driven by theprogressive regulatory framework that is forcing manufacturers to cut emissions ofcarbon dioxide, oxides of nitrogen and particulate matter.

JAPANThe Japanese filter makers are closely tied to the domestic automobile makers andhave expanded to become global players on the back of the growth of their customers.They have followed the automobile makers in establishing manufacturing plants in theregion of the Association of Southeast Asian Nations, in China, in North America andin Europe. In addition to the companies profiled in this report, Wako FiltrationTechnology is a significant supplier to original equipment manufacturers and theaftermarket. Mann + Hummel took a share in this company in 2004 and at the sametime established a joint venture company with Wako in Japan. Mahle has also investedin Japan, acquiring Tennex from Nissan in 2001.

The two leading independent filter manufacturers in the aftermarket are Alps (profiledin this report) and Nippon Micro Filter.

CHINAFrom a low base, the Chinese motor industry and the associated automobile filterindustry is now growing at a tremendous rate. More than 260 million filters wereproduced in 2006, including 30 million (or just over 10%) for exports, according tostatistics of the China Internal Combustion Engine Industry Association. Looking aheadthe Association predicts that output from the Chinese automobile filter industry willreach one billion pieces by 2010, of which 430 million filters will be exported.

The Chinese automobile filter industry originated in Bengbu City (Anhui Province),with Bengbu Filter Equipment Co Ltd being the first automobile filter maker in China.China now has over 1000 filter makers, including over 30 larger ones, which are mainlylocated in Anhui Province, Shanghai, Zhejiang Province, Jiangsu Province, andGuangdong Province, with Bengbu City and Ruian (Zhejiang Province) being the twolargest production bases. Leading companies include Tora Group, Beijing ShoutuoFilters Co Ltd, Zhejiang Universe Filter Co, Bengbu Filter Equipment Co Ltd, andWenzhou Nova Filters Co Ltd.

Bengbu is the largest Chinese production base for automobile filter research anddevelopment, and manufacturing. The city is the headquarters of five of the 30 largestfilter businesses in China.

Ruian is home to over 80 filter makers, with annual production value exceedingUS$120 million, 30% of which is for exports. Five makers account for an annualproduction value exceeding US$12 million each; with most others recording annualproduction values under US$1 million. In general Ruian filter makers are younger andsmaller than their Bengbu counterparts.


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Numerous joint ventures have been established by overseas filter makers, often linkedto investments by overseas automobile makers. There are numerous Chinesesuppliers of filtration media, especially paper-based media suitable for mass market oiland air filters, and the low cost of these materials is an additional incentive for overseasmanufacturers to base manufacturing, or at least procurement, operations in China.

OUTLOOK AND TRENDSIn the short to medium term, the following factors will have an influence on thesuccess and growth opportunities in the filters market:

• the number of new automobiles built; the more automobiles that are built, thelarger the market. The automotive industry expends great efforts in attempting toforecast future demand and matching production capacity to anticipated sales;

• the frequency with which parts have to be replaced; there is a progressive trendto extend servicing intervals, and consequently reduce the frequency ofreplacement for spare parts. This reduces demand for these products but is adriver for adoption of higher technology products, often with a higher margin;

• raw material prices; filter manufacturers buy filtration media and a variety ofother raw materials. Increases in raw material prices impact negatively on thereturn on sales achieved. There is a trend for filter manufacturers to sourcematerials in low-cost countries to counter the effect of increased costs;

• social, political and environmental impacts; there are progressive trends toimprove driver and passenger health and comfort, and to reduce the impactof the automobile on the environment by reducing waste, increasing fuelefficiency and cutting emissions. These trends provide opportunities fordeveloping filtration technologies, often with products that offer a higherreturn on sales. Examples include cabin air filters, diesel particulate filters andcartridge oil filters;

• geography: the major growth in the automotive market will come in thedeveloping nations. China is the fastest growing sector at present but India alsooffers great future opportunities. Each market will have specific success factorswhich will affect the preference for different types of automobile (smallautomobile or sports utility vehicle), types of fuel (that is, diesel or petrol) andpreferred suppliers; and

• technology: the automotive industry is developing a number of alternativemethods for powering vehicles with the aim of reducing consumption of fossilfuels and potentially reducing carbon dioxide and other emissions. Hybrid drivesystems, which couple electric motors with internal combustion engines, arealready in production. Fuel cell powered vehicles have been developed anddemonstrated although these are not yet a commercial option. Battery-poweredelectric vehicles are also available although they are limited in their range ofoperation. Adoption of these technologies on a large scale would drasticallyreduce demand for most automotive filters, with the exception of cabin airfilters. However, widespread application of alternative technologies is notanticipated in the short to medium term.


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LUBRICATION FILTERSInternal combustion engines use oil as a lubricant. In extended use, the oil candegrade and become contaminated with small particles of wear debris and othercontaminants. Efficient filtration of the oil restores its lubricating properties andextends the interval between oil changes. This is generally achieved by causing the oilin the engine to flow through a full-flow oil filter. These tend to be of one of twotypes: spin-on and cartridge.

The spin-on filter is designed to be easily removed and discarded at every oil change.The cartridge filter comprises a filter housing which is permanently attached to theengine block and contains a disposable filter element, in cartridge form. Thepopularity of these two types has waxed and waned over the years. Until the mid-1950s cartridge filters were the norm, but in 1954 Wix claims to have patented thefirst spin-on filter. This brought great advantages in ease of servicing and convenientdisposal and became widely used in the 1960s, but more recently concerns overrecycling and minimization of waste have brought about a resurgence in cartridgefilter designs, with Europe and Asian manufacturers taking the lead. When spin-on oilfilters are replaced, the old filter still contains significant quantities of oil, as well as thesoiled element and the steel can. The oil can be recycled along with the steel, whilethe used element can be incinerated. Simple disposal of the units in landfill is notacceptable due to the potential leaching of discarded oil.

Oil filters usually employ cellulose-based nonwoven media. These are supplied in roll-form by one of the major media suppliers. The filter media are pleated and may includeother materials in blends or they may be impregnated with resin. Some higherperformance filters may be made entirely from synthetic materials.

In a spin-on filter, the cylindrical pleated element is contained within a metal (typicallysteel) shell. The filter includes two valves: some form of bypass valve to enable the oilto continue to circulate even if the filter element is blocked plus an anti-drainbackvalve. The cartridge filter is similar but the metal shell is more substantial and ismounted permanently on the engine block. The filter element can be removed anddisposed of without removing the whole filter assembly.

In addition to full-flow filters, secondary oil filtration can be effected via a bypass oilfiltration system. This adds an additional flow path by which some 10% of the oil isdiverted through a second filter, usually designed to capture smaller particles than thefull-flow filter. This maintains the oil quality for longer and consequently allows longerservice intervals but this arrangement is mostly restricted to heavy trucks,construction equipment and marine engines. It is not widely applied in automobiles.

The largest manufacturers of oil filters are companies such as Mann + Hummel, Mahle,and Sogefi in Europe; Wix (Affinia), Fram (Honeywell), Champion Laboratories (UCI),Purolator (Bosch/Mann + Hummel joint venture) and Clarcor in America; and ToyotaBoshoku and Denso in Japan.


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ENGINE AIR FILTERSInternal combustion engines require a free flow of clean air in order to operate at peakperformance. Air filters ensure that the air entering the engine is free from dust andother contaminants. However, they must do this without restricting the flow of air intothe engine.

Air filter designs depend on the engine’s air intake system. An engine with acarburettor will typically use a cylindrical filter which surrounds the carburettor.Modern fuel-injection engines generally employ a flat panel instead. Pleated paper-typemedia have been widely used since the 1960s and remain the normal first choice formost original equipment manufacturers. These filters are generally made by the samemanufacturers as engine oil filters.

In the quest for high filtration efficiency coupled with optimum throughput, theconcept of high-performance air filters has been growing in recent years. Thesepremium products were developed originally for motor sports and motorcycles andare generally offered by smaller specialist suppliers like K&N Filters in the USA whohave established a niche in the air filter aftermarket. The media employed are cottongauze or synthetic materials such as polyurethane foam. These can be cleaned and re-used unlike paper filters which are disposable items. Air filters are not asenvironmentally damaging to dispose of as oil filters and neither are they changed asregularly.

FUEL FILTERSFuel filters are designed to ensure that the fuel entering the engine is free fromcontamination. These contaminants can be in the form of particles of rust of paintfrom the fuel tank or traces of water in diesel fuel. Fuel filters do need regularreplacement but generally at less frequent intervals than oil and air filters.

CABIN AIR FILTERSTowards the end of the 1980s, vehicle manufacturers in Europe began to install cabinair filters to remove the various particles which were entering the car’s cabinthrough the ventilation system. This was initially done as a health benefit as dust,vehicle fumes, pollen and other allergens can cause health problems for occupants ifinhaled. An additional benefit was that components in the car’s heating, ventilationand air-conditioning system were protected from contamination. There are twotypes of cabin air filter:

• the simple particle filter, which traps particles; and• the combi-filter, which also incorporates activated carbon and can absorb

certain molecules and thus reduce odour problems, especially from fuel andexhaust gases.

Adoption of cabin air filters has been highly regional. Europe was putting cabin air filtersin more than 90% of new automobiles by 2005 while at that time only 30% of


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automobiles in the USA were so equipped. Adoption was higher in Japan (70%) and evenChina was putting the filters in 35% of its automobiles. Combi-filters now account forhalf the cabin air filters installed in Europe although they are less widely used elsewhere.

Cabin air filters are offered by most of the major filter makers but there are alsospecialist manufacturers such as Freudenberg, 3M, DuPont and Helsa-Automotive.

DIESEL PARTICULAR FILTERSThe most recent automotive filter type to appear on the market is the dieselparticulate filter. This device is designed to reduce the emissions of particulate matterfrom the exhaust stream of diesel-engine vehicles. Particulate matter comprisescarbon (soot) and other contaminants such as unburned fuel or oil, sulphates andother inorganic materials which are found in the fuel. Other substances emitted fromvehicle engines also cause significant environmental concerns. Carbon dioxide is amajor greenhouse gas and contributor to climate change. The various oxides ofnitrogen are local pollutants (causing smog and acid rain) and also act as greenhousegases, contributing to climate change.

Particulate matter emissions from diesel engines are responsible for local air pollutionand have been shown to be linked to cancer, premature death and other health problemssuch as lung diseases like asthma, emphysema and bronchitis. As a result of these findings,legislators around the world have sought to reduce the levels of particulate matter fromdiesel engines through progressive legislation. In response, automobile makers haveworked to develop technical solutions to enable these targets to be met.

The diesel particulate filter is a full-flow filter in the vehicle exhaust. As the exhaust gasespass through the filter, the soot particles and any contaminants carried on the particlesare trapped on the filter media. To prevent frequent replacement, the filter is designedto be self-cleaning. By heating the filter to a high temperature in the presence of a suitablecatalyst, the hydrocarbon contaminants are burnt off and released as carbon dioxide andwater. There are two approaches to catalyst regeneration. Some systems use a fuel-based catalyst, whereby an additive is mixed with the fuel in a process controlled by theengine control unit. A second approach uses a catalyst which is embedded on the surfaceof the filter element itself. The filter elements are made from ceramic or metallic cores,using materials such as cordierite or silicon carbide. The exhaust gases flow through thewalls of the honeycomb type core, each passage of which has alternate ends blocked.

The area of exhaust emission control will continue to develop in the face of ever-tightening regulation, leading to the combination of diesel particulate filters with selectivecatalytic reduction systems designed to cut emissions of oxides of nitrogen. Recently,some European countries have introduced incentives for automobile owners to havediesel particulate filters retrofitted. This will provide a short-lived market for retrofitkits but soon virtually all diesel-powered vehicles will be fitted with diesel particulatefilters as standard, in order to meet the Europe 5 emissions requirements which willcome into effect for new models from September 2009.


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SUMMARYThe automotive filtration business faces a continuing growth phase as globalautomotive ownership continues to increase. Increased production of newautomobiles (driven most significantly by China and India) will be matched byequivalent growth in sales of filters to original equipment manufacturers. A largeroverall fleet of automobiles also leads directly to increased sales of replacement partsfor those components, like oil and air filters, that need to be changed on a regular basis.There is also the potential for the industry to grow through progressive adoption ofmore complicated filtration solutions. The rewards these deliver in terms of fueleconomy, health benefits and reduced environmental impact, allow premium pricingand more favourable margins for the manufacturer. The automobile maker’s goal (andautomobile owner’s dream) of increased service intervals brings a dilemma for themanufacturers of the consumable parts. Longer service intervals will require premiumproducts, thus increasing revenues and earnings for suppliers to original equipmentmanufacturers. However, replacement frequency will drop leading to a consequentdecrease in the total volume of filters sold to the aftermarket. Choosing the rightstrategy in this period will provide an excellent test of the management skills of thefilter industry’s top executives.

Globalization is a necessity for future success in automotive filtration. Not only isChina the fastest growing market but it also represents an attractive low costprocurement and manufacturing base. Similarly, filter manufacturers cannot afford toignore the potential of the growing South American market nor the enormouspotential market in the Indian sub-continent. Chasing this regionalized growth willrequire companies to act quickly and have access to the cash needed to invest inestablishing manufacturing operations in the markets being targeted. The more heavilyleveraged companies may find this challenging as they struggle to meet existing interestcommitments, particularly if credit continues to be expensive and difficult to arrangefor any extended period of time.

Two areas at which the industry is looking with great interest are related to futurechoices about vehicle drivetrains. Adoption of diesel as a fuel for passenger vehicles isminimal in North America whereas it is over 50% in Europe. If diesel-fuelled vehiclesdo make a breakthrough in this market, as logic suggests they must, the extracomplexity of the engines and exhaust treatment systems will prove a positive driverfor growth across many aspects of automotive components, but especially for makersof diesel particulate filters.

Looking further ahead, a second area of interest is the development of alternatives tothe internal combustion engine. This has started with the introduction of hybriddrives, which combine an internal combustion engine with an electric motor, buttechnology will move on in time to commercialize other solutions such as fuel cell orbattery electric powered vehicles. These technologies will have a significant impact onthe need for filtration in the automotive industry. However, predicting a timescale forsuch changes to take place is far beyond the scope of this report.


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3M3M Corporate Headquarters

3M CenterSt Paul, MN 55144-1000

USATel: +1-888-364-3577

http://www.3m.comKEY EXECUTIVES:George W. Buckley, 3M Chairman, President and Chief Executive OfficerHak Cheol Shin, Executive Vice President, Industrial and Transportation Business

3M is a diverse technology-based company organized in six businesses:

• Consumer and Office;• Display and Graphics;• Electro and Communications;• Health Care;• Industrial and Transportation; and• Safety, Security and Protection Services.

3M was originally founded in 1902 as the Minnesota Mining & Manufacturing Co, to mineand exploit abrasive materials. This was not particularly successful but the company foundmore success developing sandpaper products. The first major technical breakthrough wasthe invention of the world’s first waterproof sandpaper in the 1920s. This was followedby many major inventions, which we recognize today in global brands such as Scotch tape,Post-it products, Scotchlite reflective sheeting and Scotchgard fabric protector.

Today the company operates in more than 60 countries, with 145 plants worldwideand 169 sales offices. It employs more than 75 000 people around the world andrecorded sales of US$22.9 billion in 2006, of which US$14.1 billion were outside theUSA. Its shares are publicly held and traded on the New York Stock Exchange, where itis one of 30 companies in the Dow Jones Industrial Average.

The Industrial and Transportation segment serves a broad range of markets, such asappliances, paper and packaging, food and beverage, personal care and automotive.Industrial and Transportation products include tapes, a wide variety of coated andnonwoven abrasives, adhesives, speciality materials, software for supply chains, closuresfor disposable diapers, and components and products that are used in the manufacture,repair and maintenance of automotive, marine, aircraft and speciality vehicles.

In August 2005 3M acquired Cuno Inc, adding a comprehensive line of filtrationproducts for the separation, clarification and purification of fluids and gases. Cuno isnot, however, active in the automotive filtration market at present.


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3M operates in just one sector of automotive filtration, supplying cabin air filtrationproducts under its Filtrete trademark. Capitalizing on the success of its Filtrete brandof air filters for the home market, 3M introduced a line of particle-only cabin air filters in1996 and added odour-removing capabilities in 1997. 3M was the first US manufacturerof vehicle air filters that capture particulates and reduce odours simultaneously.

The 3M filters are made of nonwoven fibres that carry a permanent electrostatic chargeto enhance their ability to capture particles, so-called “electrets”. A second section ofthe particle and odour filter uses activated carbon to collect odour-causing gases.Filtrete cabin air filters are designed to help eliminate particles measuring 5 µm or morein diameter and 50% of smaller particles, and odours caused by gaseous pollutants fromthe air entering the passenger compartment. During its service life – averaging 24000–40 000 km (15–25 000 miles) depending on driving conditions – a typical filterremoves 2–12 g of particulate matter, comprising dust and pollen.

3M also markets Filtrete products for static air-filtration duties in domestic andindustrial environments.

COMMENT:3M is a tremendously successful company despite its enormous breadth of scope. Itmanufactures products as diverse as fly fishing lines and dental prosthetics, serving thewidest range of consumer and industrial markets. The unifying feature of thecompany’s interests is a background in innovative materials science.

While many of its well-known brands, such as Scotch tape and Post-it notes were the resultof active materials research and an entrepreneurial culture, today the company’s primarygrowth strategy is acquisition of companies with interesting materials technologies, and thesubsequent capitalization of those technologies through 3M’s global organization.

3M has a good record of transferring its materials technology to new markets andthere is perhaps potential for the company to apply Cuno’s liquid filtration expertiseto the automotive market in the future, especially in higher performance duties suchas transmission or hydraulic fluid filtration.

KEY FIGURES: 3M (2005–2007)

US$ million Three months ended30 September

Nine months ended30 September

Year ended 31 December

2007 2006 2007 2006 2006 2005

Net Sales 6177 5858 18256 17141 22923 21167

Of which Industrial and Transportation 1807 1654 5396 4988 6754 6144

Operating income 1425 1342 4923 3886 5696 4854

Of which Industrial and Transportation 378 339 1148 1039 1343* 1211

Net income 960 894 3245 2675 3851 3111

*Includes $15 million of restructuring expenses.


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ACDELCOGeneral Motors Service & Parts Operations

G3WS13016200 Grand Pointe Drive

Grand Blanc, MI 48439USA

Tel: +1-800-223-3526http://www.acdelco.com

KEY EXECUTIVES:Douglas J. Herberger, General Manager—General Motors Service and PartsOperationsScott R. Mackie, General Director, ACDelco, SPO International and NewVentures, General Motors Service and Parts Operations

ACDelco is a brand of General Motors’ Service and Parts Operations, a division ofGeneral Motors, and is a global leader in automotive replacement parts and relatedservices and offers quality aftermarket products for all makes and models, includingFord, Chrysler, General Motors, Toyota and Honda, plus some original equipmentreplacement parts. ACDelco products can be found in more than 100 countrieslocated on six of the seven continents and are sourced globally to meet the needs ofthe local markets, including maintenance parts commonly replaced during the lifetimeof a vehicle (for instance batteries, oil filters, air filters, wiper blades, shocks and brakes),as well as repair parts (such as alternators, radiators, chassis and heating/coolingcomponents). As of February 2007, ACDelco offers more than 100 000 parts across37 product lines. Of relevance to this study are its lines of oil filters, fuel filters, air filtersand transmission filters. Some of these products are manufactured by ACDelco in itsMichigan plant; others are sourced to ACDelco specifications from other suppliers.

The features of the product range are as follows:

• air filters: panel and round filters are offered using petroleum-coated, resin-impregnated media;

• fuel Filters: in-line, in-carburettor and fuel-injection versions are available;• oil filters: these employ cellulose and synthetic media and are available in

cartridge and spin-on designs to fit the majority of automobile and light truckapplications; and

• cabin air filters: these are carbon-impregnated and designed to help eliminatemoulds, pollen, allergens, smoke, fumes, and odours. They are offered with a 12-month/19 000 km (12 000 miles) limited warranty and there are designs to fitmost of today’s vehicles.

ACDelco employs a two- or three-tiered distribution model, using a network ofappointed wholesale distributors to service independent installers, ACDelco servicecentres, retail and fleet customers.


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ACDelco’s All Makes/All Models strategy is working to capture the market for non-General Motors’ vehicles. The strategy includes initiatives such as the Total ServiceSupport programme, which emphasizes trained technicians, shop efficiency andeffective use of service bays; ACDelco Service Centers in the Asia Pacific, Middle East,Europe and Latin America, that provide competitive, non-warranty, light maintenanceand repairs; and ACDelco is also developing a Web Integrated Service Environment(WISE) that will provide an Internet connection between ACDelco warehousedistributors and independent service centres.

ACDelco’s origins can be traced back to the early days of the 20th Century, beforeGeneral Motors had produced its first vehicle. The AC comes from the initials ofAlbert Champion, a champion bicycle racer, who left his native France in 1899 andheaded for Boston, Massachusetts. There, Albert turned his hobby of making sparkplugs into a business and named it The Champion Ignition Co. In 1905 AlbertChampion broke his partnership with his investors, who kept the Champion IgnitionCo name and three years later he joined forces with Buick Motor Co making sparkplugs in the AC Spark Plug Division. In 1916 United Motors Corp (UMC) absorbed theAC Spark Plug Division and formed United Motor Services Inc (UMS) to sell andservice parts. UMC would later merge with Chevrolet to form General Motors.

COMMENT:ACDelco’s strategy in recent years has been to broaden its product portfolio to offerspares for all the major automobile makers. This reduces the company’s reliance on theUS market and its dependence on General Motors’ success in selling its own vehicles.

It could prove difficult to make this strategy work in the automobile filter sector whenthere are specialist brands already serving the full range of manufacturers andincreasingly looking to become global suppliers. ACDelco can capitalize on theGeneral Motors’ infrastructure which gives access to a global manufacturing andprocurement network. It can also exploit its own service centre network as a route tothe aftermarket. However, it does not have the same focus on filtration as itscompetitors and it seems likely that the company’s future involvement in automobilefiltration will be more as a reseller of ACDelco-branded products rather thandeveloping and manufacturing its own filters.


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AHLSTROM CORPAhlstrom Corp, Head Office

PO Box 329, FI-00101 HelsinkiEteläesplanadi 14, FI-00130 Helsinki

FinlandTel: +358-10-888-0

Fax: +358-10-888-4709http://www.ahlstrom.com

KEY EXECUTIVES: Jukka Moisio, President and Chief Executive OfficerJari Mäntylä, Chief Financial OfficerLaura Raitio, Senior Vice President MarketingRandal Davies, Senior Vice President Filtration

Ahlstrom is a global leader in the development, manufacture and marketing of highperformance fibre-based materials. Nonwovens and speciality papers, made byAhlstrom, are used in a large variety of everyday products, such as filters, wipes, flooring,labels, and tapes. Based upon its unique fibre expertise and innovative approach, thecompany has a strong market position in several business areas in which it operates.Ahlstrom’s 6200 employees serve customers via sales offices and production facilitiesin more than 20 countries on six continents. In 2007, Ahlstrom’s net sales amounted to€1.76 billion. Ahlstrom’s shares are listed on the Helsinki Stock Exchange.

Ahlstrom’s main geographic markets in terms of net sales are Europe (63%), NorthAmerica (22%), Asia Pacific (9%) and the rest of the world (6%).

Ahlstrom’s history dates back to 1851, when Antti Ahlstrom started his own businessconsisting of a grain mill, a rag paper mill, a ceramics workshop and a share in a sawmill.Funded initially by early success in shipping, Ahlstrom acquired ironworks, furthersawmills, and pulp and paper mills to establish a major industrial enterprise. Up untilthe 1980s, the company concentrated its efforts on wood processing and bulk paperproduction. In the 1980s the focus shifted away from bulk paper and by the 1990s wasfirmly focused on speciality papers.

In 2000 Ahlstrom acquired Dexter Corp’s nonwovens fabric production units inthe USA, UK and Sweden. The following year Ahlstrom installed a high-technologynew generation nonwoven production line in the USA and a wetlaid nonwovensline in Belgium. Product Technology was purchased from FiberMark Inc, the USproducer of engine filtration media. In 2004, two further US plants were acquiredto serve the wipes and filtration businesses. In 2005, Ahlstrom acquired Lantor’sfiltration business (USA and China).

In 2006, Ahlstrom was listed on the Helsinki Stock Exchange and the companyacquired the speciality nonwovens manufacturer HRS Textiles and expanded its glass


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nonwovens production to Russia and the USA. The company invested in expandingnonwovens capacity in Brazil, France and the UK, and built a new filtration line at itsplant in China.

2007 has seen further acquisitions, including the spunlace nonwovens business of OrlandiGroup and Fabriano Filter Media SpA (a manufacturer of microfibre glass filter media).

Ahlstrom reports its operations in two segments: FiberComposites, comprising thenonwovens, filtration and glass nonwovens business areas, and Specialty Papers,comprising the business areas of label and packaging papers and technical papers.

Ahlstrom estimates that the volume of the overall market for the FiberCompositessegment is currently growing at an approximate annual rate of 6–7% and the overallmarket for Ahlstrom’s speciality papers is growing at an average annual rate of 3–4%.

Ahlstrom’s Filtration business area represents 20% of the Group’s net sales and has 13manufacturing plants located in Europe, North America, South America and Asia. It is aleading manufacturer of filter media used in all applications in the transportationsector, including air intake, oil, fuel, cabin air and transmission filters. These media aresupplied to filter manufacturers in the form of roll goods.

Ahlstrom’s air intake filter media range aims to cover all market requirements fromheavy duty and gas turbine duties to panel filter applications. Grades produced rangefrom fast curing to non-curing grades and from flat to corrugated filter media.

Innovations include a double-layer air filter media for automotive applications assuringconsistent increase in the air filter life. Flame retardant additives can be inserted duringthe media formation where needed. A high synthetic content filter media has beendeveloped for engine air intake and gas turbine applications which can guaranteehigher performance even in wet conditions. Recently, Ahlstrom introduced Xlife, a100% synthetic media specifically engineered for extended life filters and necessitatingfewer pleats for equivalent efficiency.

Ahlstrom has a complete range of cabin filter media using electrostatic particlefiltration and activated-carbon odour control applications. The proprietary Trinitex®

technology permits the activated carbon to be sandwiched between two outer layers.This makes the media easy to process for pocketed or pleated filters, while notcompromising the efficiency.

Ahlstrom is developing its fuel filter media technology for use in new and highperformance engines. The standard fuel filter media range – manufactured from a widevariety of fibres – has been integrated with innovative products such as a laminatedmedia which combines a cellulose and fine fibre layer for increased efficiency, waterseparation and high dust-holding capacity.


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Ahlstrom has initiated several projects to increase oil filter media performance.Ahlstrom’s oil filter media are manufactured using a variety of fibres with the additionof selected resins to meet customer specifications. A 100% synthetic oil filter mediahas been developed which allows longer life throughout heavy use.

Ahlstrom manufactures a resin impregnated nonwoven felt that has been specificallydeveloped for applications in transmission filters. Ahlstrom believes it is the largestmanufacturer of this type of media in world. The products are available in roll form oralready die-cut to customer specifications, ready to be inserted in transmission systems.

COMMENT:In recent years, Ahlstrom has repositioned itself, moving away from being a mainstreampulp and paper player and carving out a number of specialist niches in related markets.This is a sound approach, protecting its shareholders from the rollercoaster ride thatbedevils the bulk paper business.

Ahlstrom’s filtration media business is a significant global player, especially within theautomotive market where it can supply media for air, oil, fuel and cabin air filtrationequipment. The product range is strong, with some important technical developmentsin place to capitalize on the likely growth areas of cabin air filtration and high-performance air and oil filters. The manufacturing base is well distributed as well, withautomotive filtration plants in Korea, Brazil, Spain, Italy, Finland and the USA.

The overall business is growing both organically and through strategic acquisitions butprofitability levels continue to be low. The company is exposed to fluctuations in rawmaterial costs, and pulp prices are significantly higher in 2007 compared with 2006.Improving the operating margin will be a major focus for the company in the nextcouple of years, with the first half of 2007 showing no significant improvement inmargin. Net sales for the first half of 2007 were €853.3 million (compared with€824.2 million for the combined first and second quarters of 2006) but operatingprofit was just €40.6 million excluding non-recurring items, down from €52.3 millionthe year before. The profitability was hit further by non-recurring restructuring costsof €42.0 million in the fourth quarter of 2007. These knocked the operating profit for2007 back to just €25.8 million on sales that were up 10% at €1.76 billion.

As well as overcoming the problems of raw materials prices, Ahlstrom has had toensure that it optimizes its manufacturing operations. Through its programme ofacquisitions it has inherited a large number of manufacturing facilities and we can expectrationalization of these plants over the coming years. Ahlstrom has already announcedthat it will close its Bellingham, Massachusetts, USA, factory in the first half of 2008,relocating some of its assets to Darlington, South Carolina, USA. In addition it will installa new needlepunch line at Darlington. Ahlstrom acquired the Bellingham plant (alongwith the Wuxi plant in China) when it bought the filtration business of Lantor Inc in late2005. By eliminating loss-making or low-margin operations, Ahlstrom should be ableto turn its sales growth into a stronger return for investors in the coming years.


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KEY FIGURES: AHLSTROM (2004–2006)

(€ million) Year ended 31 December2006 2005 2004

Sales 1599.1 1552.6 1567.8Of which FiberComposites 808.2 742.3 663.9

Operating profit* 87.3 99 82.1Of which FiberComposites 54.1 62.7 47.1

No. of employees 5677 5525 5755Research and development expenditure 25 27.1 27.6

*Excluding non-recurring items.


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ALPS MANUFACTURING CO LTDTabata 390, Kodama-Cho

Honjo-CitySaitama

JapanTel: +81-495-723131

Fax: +81-495-723554http://www.alps-filter.co.jp

KEY EXECUTIVES:Tamotsu Hoshi, ChairmanEiichi Hoshi, President and Chief Executive OfficerHiroyuki Hoshi, Managing Director Overseas Operations

Alps Manufacturing Co is a filter manufacturer that supplies the domestic aftermarketin Japan. It produces fuel, oil, air and cabin air filters and the automotive marketrepresents 37% of its sales volume. The company also supplies filters used inconstruction machinery, machine tools, pure water devices, and cleaning. The companymanufactures in Japan and in Malaysia and sells many of its filters through a distributiondeal with Rising Sun Co Ltd, which markets the filters through Showa Shell servicestations throughout Japan.

Alps was first established in Tachikawa, Tokyo, Japan in 1964. In 1969 Asahi MFG Co Ltdwas set up as a trading company and export of automotive filters commenced. In 1992Star Filter Sdn Bhd, Malaysia, was established and commenced its operations. Fine FilterCo Ltd merged with Alps in 1998.

In 2003 the company started the development of diesel fuel filters and two years laterbuilt an assembly line for fuel filters for new diesel engines.

The company has technical capabilities in polypropylene injection moulding andwelding, moulded polyurethane, canned and cartridge products, as well as variablepleating capabilities and hot-melt sealing.

COMMENT: Alps Manufacturing is a small independent Japanese filter maker that doesn’t benefitfrom close ties with the major Japanese automakers and the consequent high volumesof business with original equipment manufacturers. Despite its small size it has addedmanufacturing capacity in Malaysia in addition to its two Japanese facilities. It offers afull range of automotive filter types, including cabin air filters.

The company is perhaps most interesting for its penetration of the Japanesefiltration aftermarket, via national service station networks, repair shops andwholesale trading companies.


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AMSOIL INCAmsoil IncSuperiorWI 54880-1582USATel: +1-715-392-7101Fax: +1-715-392-5225http://www.amsoil.com

KEY EXECUTIVES:Albert J. Amatuzio, President and Chief Executive Officer

Alan Amatuzio, Executive Vice President and Chief Operating Officer Dean Alexander, Executive Vice President and General Manager

Amsoil is a privately owned company based in Wisconsin, USA. It formulates a wideselection of synthetic lubricating oils for all types of engine and gear applications,including those for specialized vehicles and severe operating conditions. In addition, ithas developed sophisticated fuel additives, filtration systems and other companionproducts that supplement and extend lubricant performance. All are distributedthrough a worldwide network of independent dealers.

As a jet fighter squadron commander Lt Col Albert (Al) J. Amatuzio had ampleopportunity to witness synthetic lubricants in action. These oils are used exclusivelyin jet engines because of three performance characteristics:

• an ability to reduce friction and wear on engine components;• an ability to function dependably at severe temperature extremes; and• an ability to withstand rigorous and lengthy engine operation without

chemical breakdown.

Recognizing that these same benefits would prove invaluable in combustion engines, AlAmatuzio formulated the first synthetic motor oil in the world to meet API servicerequirements for automobile engines. AMSOIL 10W-40 appeared on the market in 1972.

Amsoil’s corporate headquarters, manufacturing facility and distribution centre arelocated in Superior, Wisconsin, with several regional warehouses strategically locatedthroughout North America and overseas. The state-of-the-art lubricant productionplant contains materials blending and bulk storage facilities, as well as high-speedbottling lines and packaging equipment. The main warehouse serves as the hub of aglobal distribution network; bottles, cases, drums and totes bearing the AMSOIL labelare shipped worldwide. Capacity is geared to meet projected market demandsdecades away. The entire complex is staffed by approximately 300 employees.

Amsoil markets a full-range of engine oil and air filtration products. The company producesits own ranges of by-pass oil filters, Powercore® air filters (introduced in 2004 and featuring


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a pleated synthetic media) and the Ea range of high-performance oil and air filters. The Earange was introduced in 2005 and is intended for the premium end of the filter aftermarket.The company also sells and markets filters manufactured by Wix and Donaldson.

The Ea oil filters are claimed to have the best efficiency rating in the industry. Branded EaO,these filters provide a filtering efficiency in accordance with industry standard ISO 4548-12of 98.7% at 15 µm, while competitive filters containing conventional cellulose media rangefrom 40–80% efficiency. The small synthetic nanofibres trap smaller particles and holdmore contaminants than traditional cellulose media, resulting in lower restriction.

EaO filters have a far greater capacity than competing filter lines. When used in conjunctionwith Amsoil synthetic motor oils in normal service, EaO filters are guaranteed to remaineffective for 40 000 km (25 000 miles) or one year, whichever comes first.

Over the service life of a conventional cellulose filter, hot oil will degrade the resinsthat bind the media. The Ea oil filters’ full synthetic media technology is resin-free. Ituses a wire screen backing that is pleated with the media for superior strength.

Like the equivalent oil filters, Ea air filters also employ nanofibre technology. Thisallows them to capture more dirt, hold more dirt and allow better air flow thanconventional air filters. The filters have a service life of 160 000 km (100 000 miles) orfour years, whichever comes first. Ea filters remain effective for 40 000 km (25 000miles) or one year before requiring cleaning.

In the last year or so, Amsoil has introduced additional filter products with the Eabranding and using the same nanofibre filtration media. These include pre-filters andair filter kits for racing applications and crankshaft breather filters.

COMMENT:Amsoil pioneered synthetic lubricants in the US automotive industry but to ensure thecompany’s lubricants gave the best performance results led Amsoil to consideroptimizing the oil filtration system, in order to best maintain the oil’s condition. Thisled the company to design its own range of high performance filtration products, overand above the products it already sold. These premium products quickly established astrong reputation among motoring enthusiasts. The strategy to roll out the brand toair filtration products is a logical development, especially since the market forenhancing air intake designs (including the filter) for additional engine performance isstrong and the performance gains can be significant.

Amsoil’s marketing is directed firmly at the racing enthusiast at the moment and whilethat has been appropriate, especially in the North American market, in the future itmay need to shift the emphasis to a more environmental approach. Improving engineefficiency, cutting fuel consumption, increasing service intervals, cutting carbon dioxideemissions and reducing waste are all likely to become more compelling sales messagesto the wider marketplace than success on the racetrack in years to come.


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AWA PAPER

Thai United Awa Paper Co Ltd (Head Office) 36 Moo 7 Bangna-Trad Road, km 8 T. Bangkaew, A. BangpleeSamutprakarn 10540ThailandTel: +66-2-751-7026Fax: +66-2-751-7025

KEY EXECUTIVES:Yasuhiro Miki, President

Fujihiko Miki, General Manager, Awa Paper (Shanghai)

Awa Paper is the major supplier of paper-based filter media for the Japaneseautomotive filtration industry, with an estimated 60% market share. It has fourfactories in Japan and additional production facilities in Thailand and China (Shanghai).

Its main products include:

• filter paper;• reverse osmosis membrane backing paper;• ceramic fibre paper for friction materials;• battery separator paper;• special paper board for electric mosquito killers; and• core sheet for building materials.

The company was founded in 1916 as a pioneer of machine-made paper in Japan. By1930 it had become Japan’s leading paper maker with a 25% share of the market forcalligraphy paper. The company expanded overseas, establishing a Thai manufacturingoperation in 1994 and opening a further manufacturing facility in Shanghai, China, in2005. In 2004 the company acquired the engine filtration paper business of TokyoRoshi Co Ltd, taking its domestic market share of papers for engine filters to 60%.

COMMENT:Awa Paper is a significant supplier of paper media for automotive filters in Japan. It hasexpanded its production capability as Japan’s automobile makers have moved theirproduction overseas. Awa established its manufacturing operations in Thailand as long

Head Office3-10-18, Minamiyaso-choTokushima-shiTokushimaJapan 770-0005Tel: +81-88-631-8100 Fax: +81-88-632-5951http://www.awapaper.co.jp

Awa Paper (Shanghai) Co LtdNo 355, Liantang Road, Spark Development Zone Pudong New ZoneShanghai 201419 ChinaTel: +86-21-5750-5800Fax: +86-21-5750-5805


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ago as 1994. More recently it has established a manufacturing facility in Shanghai, China.This is not yet producing at the same level as the factories in Japan and Thailand but thecompany is anticipating greatly increased activity from its Japanese customers in theChinese market and so expects to be increasing its Shanghai production levelsconsiderably in the short term.

At present, filter paper (essentially all for engine filtration) represents about a third ofAwa’s total sales revenue. In the last financial year total sales were approximately¥13 billion, with engine filter paper representing approximately ¥4 billion.


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BASF CATALYSTSBASF Catalysts LLC25 Middlesex/Essex TurnpikeIselin, NJ 08830-0770USATel: +1-732-205-5000Fax: +1-732-321-1161http://www.catalysts.basf.com

KEY EXECUTIVES:Kurt W. Bock, Chairman and Chief Executive Officer, BASF Catalysts LLC

Fried-Walter Münstermann, Executive Vice President and Chief Financial Officer, BASF Catalysts LLC

BASF Catalysts, headquartered in New Jersey, is a global division of BASFAG, Ludwigshafen,Germany. In June 2006, BASF made the largest acquisition in its 143 year history, acquiringEngelhard Corp, a company founded in 1908 in Newark under the stewardship of CharlesEngelhard, one of the forerunners in the industrial use of precious metals.

Engelhard was one of the revered names in catalysis – famous for, among other things,the invention of the catalytic converter – one of the most successful pollution controltechnologies of the 20th Century. Through a combination of ingenuity, hard work andunique knowledge of surface and materials science – primarily precious metals-based –Engelhard lead the introduction of this critically important device in time for theprovisions of the US Clean Air Act in 1975. The result has been the elimination ofliterally millions of tons of pollutants from fuel-burning engines around the world.

BASF invested in this leader in environmental and process catalysts to grow thebusiness, encourage innovation and expand further into markets.

BASF Catalysts employs more than 5000, with 35 manufacturing sites worldwide. It is thefirst global division of BASF headquartered outside of Germany, with executive officesand a Global Research and Development Center for catalysis based in Iselin, New Jersey.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals,plastics, performance products, agricultural products and fine chemicals to crude oiland natural gas. BASF has over 95 000 employees and posted sales of €52.6 billion(approximately US$66.1 billion) in 2006. The Catalyst division's financial results arereported within BASF's Chemicals sector.

BASF Catalysts’ supplies catalytic soot filter technology to reduce particulates andother emissions from diesel passenger automobile engines. This technology draws onBASF Catalysts’ expertise in both automobile emission catalysts and catalytic sootfilters for diesel trucks and buses. It can be combined with a diesel oxidation precatalystto destroy hydrocarbons, carbon monoxide and soot created by diesel engines.


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BASF Catalysts’ catalytic soot filter traps and destroys the carbon particulates (orsoot) produced by diesel engines. The filter features a proprietary coating that enablesthe device to burn the soot during normal driving conditions, thereby regenerating it.This regeneration process can be initiated by a car’s engine-management system andneed not require fuel additives or any action by the automobile owner.

COMMENT:Exhaust treatment is already big business, with catalytic converters fitted to all newpetrol-powered automobiles and progressive emissions regulations forcing standardshigher and higher. Treating diesel exhausts requires a more complicated technicalsolution but offers enormous rewards as well, particularly if the anticipated growth indiesel engine adoption in the USA materializes.

BASF paid a massive US$5 billion for Engelhard but the acquisition has already had apositive effect on BASF’s business, bringing impressive sales growth and a huge boostto profitability. Investment has continued since then with the acquisition of amotorcycle catalyst business in China and expansion of BASF’s automotive catalystplants in Shanghai, China, and Chennai, India. The company has said that it will doublecapacity in Shanghai and triple capacity in Chennai by the beginning of 2009.

As a legacy of the Engelhard acquisition, BASF owns 42% of the NE ChemCat Corp ofJapan, a producer of catalysts for automotive exhaust treatment.

In December 2007, BASF announced a reorganization of its businesses, dividing itsactivities in six segments. A segment entitled Functional Solutions has been created tocombine the Catalysts, Construction Chemicals and Coatings operating divisions.

KEY FIGURES: BASF CHEMICALS (2006–2007)

(€ million)Three months ended

30 SeptemberNine months ended

30 September2007 2006 2007 2006

Sales 3597 3442 10746 8124Of which catalysts 1248 999 3674 1279

EBIT before special items 470 444 1700 1112

Research and development expenses 53 46 148 112


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BEKAERTNV Bekaert SAPresident Kennedypark 18B-8500 KortrijkBelgiumTel: +32-56-230511Fax: +32-56-230543E-mail: [email protected]://www.bekaert.com

KEY EXECUTIVES:Bert De Graeve, Chief Executive Officer

Henri-Jean Velge, Group Executive Vice President

Bekaert’s business is built on two core competences: advanced metal transformationand advanced materials and coatings. The combination of these competences makesBekaert unique.

Bekaert reports its results based on three business segments: advanced wire products,advanced materials and advanced coatings. Bekaert produces a highly diverse range ofadvanced wire products which find application in many sectors. Steel wires of variousgrades and in various forms are used in a variety of applications meeting many differentproduct specifications. The product range runs from high-tensile wires to ultra-thinmetal fibres of 1 µm in diameter. The development of wires with higher tensilestrength allows thinner wires to be used without compromising flexibility. High-tensilewires are bunched into steel cord.

The advanced materials segment covers applications of fibre technologies, combustiontechnologies and composites. On the basis of its expertise, the company uses ultra-thin Bekaert metal fibres to produce environment-friendly filters, gas burners andcombustion systems for both residential and industrial applications. It also developsproducts for other applications in textiles and in conductive plastics. Bekaert is thelargest manufacturer of metal fibres in the world with production facilities in Belgium(Zwevegem, Wevelgem, Wetteren), Japan (Saitama) and the USA (Research TrianglePark, North Carolina). The Advanced Materials segment employs 949 people and hadsales of about €156 million in 2006.

The Advanced Coatings segment covers industrial coatings and specialized films. Withinthe industrial coatings activity platform, Bekaert deploys its expertise in the applicationof coatings to various materials, mainly glass and metal. The company manufactures arange of window films for vehicles and buildings to keep out the sun’s heat, to filter outultraviolet radiation and to hold glass together in the event of breakage.

Bekaert’s filter products for the automotive industry are included in the FibreTechnologies sector in the Advanced Materials segment (Fibre Technologies represented


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46% of Advanced Materials sales in 2006) and are based on the company’s proprietaryBekipor® porous medium, a nonwoven, highly porous fibre matrix made of sintered metalfibres. Main applications are regular automotive duties like air, fuel and lubricant filtrationbut Bekipor has also found application in less common areas, for example airbag filters.

Leo Leander Bekaert, the Group’s founder, started out towards the end of the 19th

Century by producing barbed wire in answer to farmers’ fencing problems. Bekaertembarked on its international growth back in the 1920s, first in Western Europe, laterin Latin America and then from the 1970s onwards in North America. The internation-alization of the Bekaert Group accelerated in Asia in the 1990s. The use of steel cordfor rubber reinforcement, especially in radial tyres, and the developments in advancedmaterials played a major role in this international growth. Bekaert has achieved itsworldwide leadership by taking maximum advantage of growth opportunities inspecific niches in fast-growing markets.

In September 2007 Bekaert signed a strategic cooperation agreement with the Indiansteel company Mukand. Both partners will set up a 50:50 joint venture and investRs100 Crores (about €18 million) in a factory to be built in Maharashtra (India) for theproduction of stainless steel wires. These wire products are used around the world incomponents for the automotive industry and all sorts of other industrial applications.

COMMENT:Bekaert’s automotive filter business occupies a small niche within Bekaert’s portfolioand a relatively small niche in the automotive filtration sector. However, the futurepotential for metal fibre filter media is promising. The demand for moreenvironmentally sustainable products is driving greater adoption of reusable filtermedia and Bekaert has the technology that could be used to achieve this. It is also wellplaced to handle novel applications, such as airbag filtration.

KEY FIGURES: BEKAERT (2005–2006)

(€ million) Year ended 31 December2006 2005

Sales 2009.6 1914.3Of which Advanced Materials 156.1 141.1

Gross profit 394.9 392.3EBIT 145.9 136.3

Of which Advanced Materials 12 5.6


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BOSCHRobert Bosch GmbHPostfach 10 60 50D-70049 StuttgartGermanyTel: +49-711-811-0E-mail: [email protected]://www.bosch.com

KEY EXECUTIVES:Franz Fehrenbach, Chairman of the Board of Management

Bernd Bohr, Chairman, Automotive GroupRobert Hanser, President, Automotive Aftermarket

Peter Tyroller, Board Member, Automotive AftermarketUlrich Dohle, President, Diesel Systems

The Bosch Group is a leading global supplier of technology and services, and claims tobe the world’s largest automotive supplier. Based in Germany, the Group comprisesRobert Bosch GmbH and its roughly 300 subsidiary and regional companies in morethan 50 countries.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as theWorkshop for Precision Mechanics and Electrical Engineering. Today, it employs260 000 people and generated sales of €43.7 billion in the fiscal year 2006.

Robert Bosch Stiftung GmbH, a charitable foundation, holds 92% of the share capitalof Robert Bosch GmbH. The majority of voting rights are held by Robert BoschIndustrietreuhand KG, an industrial trust. The entrepreneurial ownership functions arecarried out by the trust. The remaining shares and voting rights are held by the Boschfamily and by Robert Bosch GmbH.

The Bosch Group operates in the following fields:

• automotive technology (petrol systems, diesel systems, chassis systems (brakes),chassis systems (control), electrical drives, starter motors and generators),automobile multimedia, automotive electronics, automotive aftermarket,steering systems);

• industrial technology (automation technology and packaging technology); and• consumer goods and building technology (power tools, thermal technology,

household appliances, and security systems).

Bosch is active in all areas of automotive filtration. Within its Diesel Systems Divisionit is working on diesel particulate filtration and technology for reducing emissions ofoxides of nitrogen. In 2002 Bosch opted in favour of sintered metal substrates for itsdiesel particulate filters, acquiring the rights to manufacture sintered metal particulate


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filters based on technology developed by HJS Fahrzeugtechnik. However, beforeachieving high volume production, it became clear that for mainstream applications thecompany would have to look for lower cost and simpler materials, and the decisionwas taken to freeze development of the sintered metal technology. In 2006, Boschagreed to set up a 50:50 joint venture company in Poland with Denso Corp of Japanto develop and manufacture ceramic (cordierite) elements for use in diesel particulatefilters, with production expected to start in 2009.

The group has brought a couple of technologies for reducing emissions of oxides ofnitrogen to the market. In 2004, the Denoxtronic system for dosing the reducing agentAdblue into the fuel of commercial vehicles was introduced. A further metering systemfor commercial vehicles – the Departronic – was subsequently introduced. This injectsdiesel fuel into the exhaust gas flow to facilitate regeneration of particulate filters.

Bosch manufactures a complete range of oil, fuel, air and cabin air filters under theBosch brand within its Automotive Aftermarket division. The division had sales ofaround €3.3 billion in 2006.

In 2005, Bosch agreed to set up a joint venture with Mann + Hummel, establishing amanufacturing operation in Tumkur, India, to produce a full range of filters for the Indianmarket. The plant started operation in 2006 and employs around 350 people.

In order to strengthen its position in the North American market, Bosch cooperatedwith Mann + Hummel to buy the Purolator-branded filters business of ArvinMeritorin 2006. The resulting 50:50 joint venture produces oil, air, fuel and cabin air filters.

COMMENT:The Bosch Group has a benign ownership structure that enables continuousreinvestment in the business, whether in establishing new operational facilities,researching new technical solutions or acquiring technology and/or market share. Thisinvestment in technology and market share is evident in the filtration sector, whereBosch has partnered Mann + Hummel to buy the volume aftermarket filter makerPurolator and to establish operations in India.

The diesel emissions market is potentially fruitful for Bosch and it has invested heavily in thistechnology, especially the engine management functions for catalyst regeneration. Partneringwith Denso to make cordierite filter elements in Poland looks to be a good idea whichshould bring the two parties in the venture the widest possible market for their products.

Rather than pin all its hope on clean diesel, Bosch is also developing hybrid drivetechnology and plans to start production of these units in 2008.

Overall, Bosch’s automotive technology division is achieving a low rate of return onsales (4.0% in 2006) because of the combined effects of competitive price reductionsand increased raw material costs.


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KEY FIGURES: BOSCH (2002–2006)

(€ million) 2006 2005 2004 2003 2002

Sales revenue 43684 41461 38954 36357 34977

Of which automotive technology 27220 26313

Research and development cost 3348 3073 2715 2650 2487

Of which automotive technology 2743 2538

Profit before tax 3081 3178 2658 1832 1418


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CHAMPION LABORATORIES

KEY EXECUTIVES:Camilla Denison, President, Champion LaboratoriesBruce Zorich, Chief Executive Officer, United Components Inc

Champion Laboratories is one of the big four suppliers of automotive filters to theNorth American aftermarket, competing directly with the Fram, Wix and Puralatorbrands. Its product range spans oil, air, fuel, transmission and cabin air filters. It sells itsfilters under five proprietary brands – Champ, Luber-finer, Kleener (cabin air filters),Eurofilter and Petro Clear – as well as via third party brands.

The company is owned by The Carlyle Group, one of the world’s largest privateinvestment companies, and operates as a division of United Components Inc (UCI) thecompany created by Carlyle when it acquired the vehicle parts businesses of UIS in2003. UCI’s other divisions manufacture fuel pumps, water pumps and enginemanagement products for the vehicle aftermarket.

Champion Laboratories is the largest division of UCI. Filtration products accountedfor 41.8% of UCI’s US$906 million sales in 2006. Champion manufactures its filters inthe USA and the UK, with four major plants at the company headquarters at Albion,Illinois, another plant at West Salem, Illinois, a small plant making fuel filters in ShelbyTownship, Michigan, an oil-filter manufacturing plant at York, South Carolina, and an airfilter facility at Mansfield, UK. A manufacturing plant was built in Mexico in 1999 butthis was closed in 2006, with production moving back to Illinois.

Champion supplies both original equipment manufacturers and the aftermarket. Thecompany divides the automotive aftermarket into four categories: retail, traditional,heavy-duty and original equipment spares. Overall UCI generates around 38% of itssales from the retail market, with 24% of total net sales of UCI coming from onecustomer AutoZone. The traditional market represents 27% of sales, with Carquestand the National Automotive Parts Association being particularly importantcustomers. This market caters for professional mechanics and installer operations thatprovide consumers with independent service and repair functions. The heavy-duty(truck) market is served by the Luber-Finer filter brand and provides 10% of net sales.The market for original equipment spares represented 10% of 2006 sales. These are

Champion Laboratories200 South Fourth Street

Albion, IL 62806 USA

Tel: +1-618-445-6011 Fax: +1-618-445-4040

http://www.champlabs.com

United Components Inc14601 Highway 41 North

Evansville, IN 47725USA

Tel: +1-812-867-4156Fax: +1-812-867-4157

E-mail: [email protected]://www.ucinc.com


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sales to franchised dealers for routine maintenance of vehicles, usually under warranty.Sales to original equipment manufacturers represented just 11% of net sales in 2006.

Champion Laboratories became established in something approaching its current statein 1950s Illinois, when a group of local businessmen invested in the Kleen PakManufacturing Co, and moved it to West Salem, Illinois. Shortly afterwards, Kleen Pak wasacquired by Pyroil, who had recently acquired the filter maker Champion Laboratoriesof Meriden, Connecticut. Champion’s operations were moved to West Salem and thecombined business was established as Champion Laboratories. The business developedunder Pyroil’s ownership until 1970 when STP Corp and racing enthusiast AndyGranatelli acquired the business. Five years later UIS took over the business and investedin building it, acquiring Luber-finer in 1979, Lee in 1983 and Eurofilter Ltd in the UK in1995. The Carlyle Group acquired the vehicle parts assets of UIS in 2003 for US$808million, and subsequently established UCI to manage the business.

COMMENT:UCI is a young company and has been following a relatively simple four-prongedbusiness strategy since its formation: focus on core businesses; grow market share;implement cost reduction; and improve global sourcing and manufacturing. To this end,in 2006 it has disposed of the Neapco, Pioneer and Flexible Lamps businesses whileadding the strategically significant ASC Industries Inc.

Its core markets are exhibiting healthy growth, with US motorists driving moredistance in more automobiles. Moreover, the average age of passenger vehicles in theUSA is increasing, which brings more automobiles into the prime age for aftermarketmaintenance (six to 12 years old).

Champion Laboratories is continuing to demonstrate good sales growth, capitalizingon its strong brands, excellent relationships with the major customers andcomprehensive product range. Product range and quality, along with technicalsupport, are extremely important in satisfying both the traditional and retail sectorsof the aftermarket.

Canada, Mexico and the USA provide more than 90% of UCI’s sales at present, whichsuggests there are significant opportunities for growth overseas. The company doeshave the Eurofilter business in the UK, but European market share is relatively low andthere are no significant sales in Asia or the large Latin American markets.

In 2006 UCI acquired ASC Industries, a manufacturer of automotive water pumpswhich is headquartered in the USA but has manufacturing factories in China. UCI iskeen to benefit from this experience and introduce Chinese manufacturing andsourcing to all its businesses, reducing costs but also perhaps opening the door to newmarkets. This will be critical if Champion is to emerge a major global player in theautomotive filter market.


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A potential problem is the fact UCI is highly leveraged, with long-term debts ofUS$491.5 million at the end of 2006, compared with total shareholder equity ofUS$244.8 million. This leaves the company vulnerable to future increases in interestrates and suggests further acquisitions may be difficult to finance in the short term.Champion’s core market offers an apparently predictable and growing return, butthe company does face some risk in its exposure to a small number of majorcustomers (for example, it makes 24% of its sales to AutoZone alone). There is noreason for that to change as Champion continues to offer the breadth and quality ofproduct range that the market needs.

KEY FIGURES: UNITED COMPONENTS INC (2004–2007)

(US$ million)Six months ended

30 June

2007 2006

Net sales 498.4 445.1

Cost of sales 389.5 353.1

Gross profit 108.9 91.9

Operating income 45.7 26.9

(US$ million) Year ended 31 December

2006 2005 2004

Net sales 906.1 812.7 834.3

Of which Filtration Products 378.7

Cost of sales 728.6 657.9 653.1

Gross profit 177.5 154.8 181.2

Operating income 54.8 32.2 82.8

Interest expense 43.3 36.1 35.9

Net income (loss) (8.7) (4.5) 30.8


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CLARCOR INC

KEY EXECUTIVES:Norman Johnson, Chairman, President and Chief Executive Officer

Sam Ferrise, President, Baldwin Filters

Clarcor is a diversified industrial manufacturing company operating in three principalproduct segments: engine/mobile filtration, industrial/environmental filtration andpackaging. Its engine/mobile filtration division is recognized as a leading player in theheavy-duty automotive filtration market within the USA and comprises threecompanies – Baldwin Filters, Hastings Filters and Clark Filters – which sell filtrationproducts used on engines and in mobile equipment applications, including trucks,automobiles, buses, locomotives, and marine, construction, industrial, mining andagricultural equipment.

The segment’s filters are sold throughout the world, although the USA remains thestrongest market. In 2006, more than 75% of Clarcor’s net sales came from the USA.The filters are sold primarily in the replacement market but in addition, some so-called“first-fit” filters are sold to original equipment manufacturers and other products aremanufactured for private label accounts.

The products in this segment include a full line of oil, air, fuel, coolant, transmission andhydraulic fluid filters which are used in a wide variety of applications and in processeswhere filter efficiency, reliability and durability are essential.

Baldwin Filters was founded in 1936 by J.A. Baldwin and was acquired by Clarcor in1981. Clark Filters started life as the Stone Filter Co part of Stone Industrial Corp. J.L.Clark bought Stone Industrial Corp in 1971 and when the parent company changed itsname to Clarcor in 1987, it created Clark Filters. Further acquisitions were added in thefollowing years to expand the Clark Filters line (M & J Diesel Locomotive Filter Co—1992, Guardian/United Engine Life Filtration Co—1993). Hastings Filters has its originin the Hastings Manufacturing Co which was first established in Hastings, Michigan, USA,in 1915. In 1995 Clarcor paid Hastings, US$13.9 million for its filter business, includingmanufacturing facilities at Yankton, South Dakota, and Knoxville, Tennessee.

In December 2006, Clarcor opened a manufacturing, warehouse and technical centrecomplex in Weifang, China. The new facility comprises seven buildings for manufacturing,

Clarcor Inc840 Crescent Centre Drive, Suite 600 Franklin, TN 37067 USATel: +1-615-771-3100 Fax: +1-615-771-5603http://www.clarcor.com

Baldwin Filters4400 East Highway 30Kearney, NE 68847 USATel: +1-800-822-5394Fax: +1-800-828-4453http://www.baldwinfilter.com


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an office building, a warehouse and a state-of-the-art filter technical centre. Known asBaldwin-Weifang, the complex will manufacture heavy-duty air and liquid filters forengines, sand control filters for off-shore oil drilling, meltblown filters, filters used duringthe manufacture of plastic and fibre resins, liquid process cartridge filters, andelectrostatic and dust control filtration systems. The manufacturing and technicalfacilities will primarily be used to develop and manufacture filter products for sales inChina and throughout Asia.

In March 2007, the company acquired an 80% stake in Sinfa SA, a manufacturer ofautomotive and heavy duty engine filters, based in Casablanca, Morocco.

COMMENT:Clarcor has a strong automotive filter business serving the heavy duty end of the USmarket. It has invested in a broad product range, which it believes will sustainprolonged improvements in operating performance. The aftermarket replacementsector continues to grow at a steady rate and, to meet this increased demand, Clarcorplans further investment in production capacity during 2007.

Overseas markets offer the opportunity to achieve even higher growth rates. Thecompany is already operating in China and has just relocated its manufacturing facilityin Weifang, China, to another much larger plant, in light of the higher growth ratesachieved in China (sales were up 25% in the first nine months of 2007 compared withthe same period in 2006) and elsewhere in Asia to date. This foothold in the Asianmarket will benefit the whole of the company in keeping manufacturing costs undercontrol and aiding cost-effective global sourcing of raw materials. Raw material priceincreases have meant that recent sales growth has not been matched by the samelevels of operating profit growth, but the company plans to address this with productprice increases and further cost reduction exercises.

Clarcor is also strengthening its position by investing in premium performanceproducts. It has developed a nanofibre technology for engine air filters, which will allowit to compete with smaller niche players in the premium air filter market. Overall, thecompany is one of few large industrial groups in the automotive market which is purelya filtration specialist. This provides the opportunity for the results of research anddevelopment work to be applied across a wide range of markets and solutions.Further, additional acquisitions will bring in technologies that can be applied in newfields. But that transfer of technology will only happen if the organization has effectivecommunication channels and efficient knowledge management systems.


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KEY FIGURES: CLARCOR INC (2004–2007)

(US$ million) Three months to start September Nine months to start September*2007 +2006 *2007 +2006

Net sales 238.3 231.5 682.9 671.8

Of which Engine/Mobile Filtration 112.3 103.4 317.5 295.8

Of which Industrial/Environmental Filtration 105 106.3 307.4 312.8

Of which Packaging 21 21.9 58 63.2

Operating profit 34.6 35.1 89.7 87.2

Of which Engine/Mobile Filtration 26.6 25.1 71.4 66.7

Of which Industrial/Environmental Filtration 6.1 8 14.5 15

Of which Packaging 1.9 2 3.9 5.5

(US$ million) Year ended 30 November

2006 2005 2004

Net sales 904.3 874 787.7

Of which Engine/Mobile Filtration 399.1 368.2 320.1

Of which Industrial/Environmental Filtration 420.4 427.5 399.6

Of which Packaging 84.8 78.3 71

Operating profit 126.3 118.8 98.2

Of which Engine/Mobile Filtration 92.6 80.4 66.5

Of which Industrial/EnvironmentalFiltration 25.5 31.3 28.7

Of which Packaging 8.2 6.8 5.2

*Periods to 1 September 2007; and periods to 2 September 2006.


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CORNINGCorning Inc World Headquarters

One Riverfront PlazaCorning, NY 14831

USA Tel: +1-607-974-9000

http://www.corning.comKEY EXECUTIVES:Wendell P. Weeks, Chairman and Chief Executive Officer Peter F. Volanakis, President and Chief Operating Officer Pamela C. Schneider, Senior Vice President and Operations Chief of Staff Robert B. Brown, Executive Vice President, Environmental TechnologiesThomas R. Hinman, Vice President and General Manager, Corning DieselTechnologiesDr Tim Johnson, Director of Emerging Technologies and Regulations,Environmental Technologies

Corning Inc is a world leader in speciality glass and ceramics. Drawing on more than150 years of materials science and process engineering knowledge, Corning is a globalleader in four market segments:

• display technologies—glass substrates for liquid-crystal display (LCD) flat paneltelevisions, computer monitors, laptops and other consumer electronics;

• environmental technologies—ceramic substrates and filters for mobile emissioncontrol systems;

• telecommunications—optical fibre; cable, hardware and equipment for telephone;and internet communication networks; and

• life sciences—optical biosensors for drug discovery.

For almost three decades, Corning Environmental Technologies has developedcreative, highly effective emission control solutions for mobile and stationary sourcesaround the world. The company’s activities in this area date back to the early 1970s,when it developed high-performance, cost-effective cellular ceramic substrates for usein catalytic converters. This became the industry standard for more than 95% oftoday’s catalytic-converter equipped vehicles. Today, Corning holds more than 200patents on emission-control products and processes used in petrol, diesel andalternative-fuel vehicles, as well as stationary applications.

Products are divided into three types:

• ceramic substrates for catalytic converters;• diesel particulate filters; and• catalyst supports for stationary emissions control.


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Corning officially opened its new clean-air products plant in Erwin, New York, in April 2004,although production of diesel substrates began at the US$200 million production plant inJanuary 2004. In February 2005 a US$70 million expansion of the plant was announced andin July of the same year a plan for a further US$100 million expansion was revealed.

In April 2005 Corning introduced a new, advanced diesel particulate filter for light-dutyvehicles. The DuraTrap® AT filter uses aluminium titanate composition to deliverexcellent thermal shock resistance and performance under demanding conditions. TheCorning DuraTrap AT filter can be used in either catalysed or uncatalysed applications.The filter has a cellular structure with individual channels open and plugged at oppositeends. Exhaust gases enter the open end, flow through the pores of the cell walls, andexit through the adjacent channel. Soot particles are too large to flow through thepores, and they collect on the channel walls. Periodically, the filter is regenerated – orheated – to consume the soot and clean the filter.

The first application of the AT filters was announced in 2006, with the decision ofVolkswagen to equip several of its European-market diesel passenger automobilemodels with the DuraTrap AT. It will be available as part of an advanced after-treatmentoption on 2.0 l TDI engines in the Golf, Golf Plus and Touran vehicles.

Corning announced in April 2007 that Hyundai Kia Motors is equipping selectEuropean-market diesel passenger automobiles with Corning DuraTrap® AT filters.Hyundai Kia Motors will first integrate the Corning DuraTrap AT filter into the KiaCee’d diesel passenger car, which has a 1.6 l advanced diesel engine.

In April 2006 the company announced a new, advanced cordierite diesel particulatefilter for light-duty diesel vehicle manufacturers. Compared to traditionalcordierite, Corning’s monolithic DuraTrap® AC filters offer low pressure drop tohelp reduce fuel consumption and increase the power rating. They also offerimproved thermal durability and high-filtration efficiency. DuraTrap AC filters aretargeted to be the first cordierite filters used in large-scale for diesel passengerautomobiles. They are optimized for use in light-duty diesel vehicles that have newand advanced regeneration systems, and were commercialized for light-dutyvehicles in the first half of 2007 .

Corning has announced a couple of long-term agreements with diesel engine suppliers.In October 2006 the company announced a tie-up with Cummins Emission Solutionsto supply Corning emissions control products that will be used in an advanced after-treatment platform optimized for a range of Cummins medium- and heavy-dutyengines. In May 2007 a long-term deal with Detroit Diesel Corp was announced forthe supply of advanced diesel emissions control products to be incorporated intoDetroit Diesel’s emissions control systems for medium- and heavy-duty engines.

Corning’s origins date back to 1851 when the company was founded by Amory Houghton.Starting out as a regular glass maker, the company specialized in advanced glass research


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and eventually developed into an advanced materials company with particular strengths inglass and ceramic materials. The interest in automotive emissions control can be tracedback to 1970 when the US Congress adopted the first major Clean Air Act, established theUS Environmental Protection Agency, and issued motor vehicle emissions regulationsbeginning with 1975 models. At that time Corning began experimenting with cellularmonoliths for catalytic converters and by the time the regulations came into effect, Corninghad developed low-expansion cordierite substrates for catalytic converters and establisheda production facility at Erwin, New York. In 1986, Corning added a substrate plant inKaiserslautern, Germany, to supply the growing European market and in 1988 a plant inBlacksburg, Virginia, began operations to meet increased worldwide demand forautomotive catalyst supports. In 1999, Corning built a substrate manufacturing plant inShanghai, China, and added a substrate plant in South Africa the following year.

COMMENT:Corning believes the diesel emissions control market will be worth a billion dollars andis targeting a 50–60% share of the market. It has invested heavily in its productionfacilities in Erwin, New York, and is already showing strong growth, with sales up toUS$191 million in the first nine months of 2007, a 67.5% increase on the previous yearand up from a modest US$69 million for the whole of 2004.

The Corning strategy involves scaling the capacity of the company’s US$300 milliondiesel manufacturing facility to meet current and anticipated demand for both heavy-duty and light-duty filter and substrate products. The company will be targetingadditional light-duty vehicle platform contracts with its DuraTrap AT and cordieritefilter technologies, at the same time as investing in research and development toaddress remaining industry challenges.

Corning’s success in the global catalytic converter market should provide the platformand model for making the diesel emissions business successful on a global basis, and thecompany has already won good business from Volkswagen in Europe and Kia in Korea.

KEY FIGURES: CORNING (2004–2007)

(US$ million) Q1 Q2 Q3

2007 2006 2007 2006 2007 2006

Net sales 1307 1262 1418 1261 1553 1282

Of which Environmental Technologies 179 155 191 152 198 153

Of which automotive 123 121 128 113 126 112

Of which diesel 56 34 63 39 72 41

Net income (loss) 426 399 530 404 568 421

Of which Environmental Technologies 9 (1) 14 9 14 7

Continued on page 40…


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KEY FIGURES: CORNING (2004–2007)


2006 2005 2004

Net sales 5174 4579 3854

Of which Environmental Technologies 615 580 548

Of which automotive 451 482 479

Of which diesel 164 98 69

Net income (loss) 1855 585 (2231)

Of which Environmental Technologies 7 15 21

Number of employees 24500 26000 24700

…continued from page 39


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CUMMINS INCCummins Inc has two businesses of interest to this report: Cummins Filtration andCummins Emission Solutions. Each is part of Cummins Components Group.

Cummins Filtration2931 Elm Hill Pike

Nashville, TN 37214USA

Tel: +1-800-223-4583Fax: +1-800-999-8664

http://www.cumminsfiltration.com

KEY EXECUTIVES:Pamela Carter, PresidentJeff Hamilton, Chief Technology Officer, Vice President and GeneralManager—North American Exhaust BusinessKamini Patel, Vice President—Marketing Research and Product ManagementDale Olson, Vice President—World Wide Operations Functional ExcellenceVikrant Aggarwal, Vice President and General Manager—LDA and KussMorry Ellis, Vice President and General Manager—India and World WideBusiness DevelopmentDale Svenpladsen, Executive Director—Planning and Business Strategy

CUMMINS FILTRATIONCummins Filtration is part of the Components division of Cummins Inc. In total,Cummins Inc is an US$11 billion manufacturer of diesel and natural gas poweredengines and generating equipment. Its primary brand is Fleetguard. Today, the companyis the world leader in filtration and exhaust products for heavy-duty diesel engines,with a global presence on six continents and over 5500 employees.

Under the Fleetguard brand, the company markets filtration products to originalequipment manufacturers and the service replacement market for truck, construction,agricultural, industrial and hydraulic (on- and off-road) filters. Fleetguard hasintroduced many significant advances in the heavy-duty industry, including theintroduction of combination full-flow/bypass filtration in the 1980s; multilayeredStrataPore media in 1986; centrifugal filtration in 2000; and many other state-of-the-art technologies.

Cummins Filtration began in 1958 as a single filter production line developed byCummins Engine Co to meet the high performance requirements of Cummins dieselengines. Then known as The Seymour Filter Co, the facility was located in Seymour,Indiana, USA, near Cummins’ headquarters in Columbus, Indiana. Production startedwith two employees who sewed cloth-bag lube-oil filters. The company expandedrapidly and by 1959, engineering laboratories were established, and the popular LF750bypass filter was designed, along with other new filtration products. In 1963, the


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Fleetguard brand was initiated, and manufacturing operations were relocated to a new1.25 ha (135 000 square feet) plant in Cookeville, Tennessee, in 1967. Marketingheadquarters were established in Dallas, Texas, in 1969, and Fleetguard became a fullCummins subsidiary by the 1970s. Fleetguard expanded further by acquiring theDeluxe Filter Co in Lake Mills, Iowa, in 1980.

The first international manufacturing facility was established in 1981 with a modern,architecturally innovative plant in Quimper, France. Fleetguard manufacturing plantsfollowed in Australia, Mexico, Korea, Brazil and China, and distribution facilities in Belgium,Canada, Singapore, South Africa and the UK. Today, the company has 23 production plantsin nine countries, 16 distribution centres, and is part of three joint ventures. Globalcorporate headquarters were relocated to Nashville, Tennessee, in 1988.

In 1979, the LF777 spin-on/bypass filter was introduced containing a patented stackeddisk media that replaced the outdated cartridge/housing filter assembly system. In1982, the Superfilter spin-on fuel/water separator with a patented self-venting drainvalve was introduced, and by 1983, an advanced microfibre glass filter media wasintroduced for lube filters.

Kuss Corp of Findlay, Ohio, joined the Cummins Filtration family in 1986. The companyprovides automotive in-tank and inline fuel filters, gas-filled shock absorber bags, andspeciality filters for the appliance and other industries. The key product line is insert-moulded in-tank fuel filters that are used on over 80% of US automobiles and light trucks.

In 1997, Cummins acquired Nelson Industries in Stoughton, Wisconsin, adding theNelson brand, which is now part of the Fleetguard brand, to the Fleetguard family.Fleetguard exhaust products include liquid filtration systems, tubular products, air andfluid reservoirs, exhaust and emission control systems, air filtration systems and powersteering reservoirs.

In 2006, Fleetguard adopted the name and logo of its parent company, Cummins Inc. Late in2007 Cummins agreed to sell Universal Silencer Inc (USI), part of the Cummins FiltrationGroup, to the Stirling Group, led by current USI General Manager Randy Eppli.


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CUMMINS EMISSION SOLUTIONSBox 3005,

Columbus, IN 47202-3005 USA

Tel: +1-901-546-5731http://www.cummins.com

KEY EXECUTIVES:Mike Cross, Vice President and General Manager, Cummins Emission Solutions

Founded in 2002 to focus on after-treatment for upcoming emissions regulationsworldwide, Cummins Emission Solutions is a separate business unit within the CumminsComponents Group. It has become the leader for emission solutions to truckmanufacturers for the medium and heavy-duty markets, and markets for vehicles thatcomply with Europe’s Euro 4/5 standards and the US Environmental Protection Agency’slatest regulations, which came into effect on 1 January 2007. Cummins EmissionSolutions has locations in the USA, Europe and South Africa (opened in 2006) withexpansion plans targeting Asia, India and South America.

Cummins Emission Solutions has produced over 1.5 million diesel oxidation catalysts,10 000 soot filters and will produce more than 300 000 filters and/or selective catalyticreduction systems a year for the Euro 4/5 and 2007 markets.

COMMENT:Emissions regulation is putting diesel engine manufacturers under huge pressure,necessitating rapid development and adoption of emission reduction technologies.Cummins has been well placed to meet this challenge because of the strength of itsfiltration business, and by finding solutions in house has been able to develop a newbusiness selling its emission control systems to other engine manufacturers. As aconsequence, Cummins has recorded a record year for sales and looks well placed toride out the turbulence that regulation will bring to the diesel engine market in thenext year or two.

KEY FIGURES: CUMMINS INC (2004–2006)

(US$ million) 2006 2005 2004

Net sales 11362 9918 8438

Of which Components 2281 2000 1783

EBIT 1179 907 543

Of which Components 107 89 84


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DENSO CORP1-1, Showa-choKariyaAichi 448-8661JapanTel: +81-566-255511 http://www.denso.co.jp

KEY EXECUTIVES:Koichi Fukaya, President and Chief Executive Officer

Hiromi Tokuda, Senior Managing Director, Powertrain Control SystemsMasakazu Tanaka, President, ADIF (Polish joint venture with Bosch)

Denso Corp is a global supplier of advanced automotive technologies, systems andcomponents. It operates with five product groups serving the automotive market:

• powertrain control systems;• electric systems;• electronic systems;• thermal systems; and• information and safety systems.

Denso’s filter activities fall within the auspices of the Powertrain Control Systemsgroup and are mostly in the form of overseas joint ventures with Toyota Boshoku,although it is also developing its own diesel particulate filter capability.

There are four filtration joint ventures solely with Toyota Boshoku:

• TBDN Tennessee (Denso owns 49%). This company manufactures air filterelements, cabin air filters, air induction systems, oil filters, and fuel system filtersand components for the automotive industry. Its customers include majorautomobile manufacturers and aftermarket distributors worldwide. The modern,2.2 ha (238 000 square feet) automated facility located on 8.9 ha (21.9 acres) inthe growing community of Jackson, Tennessee, has been in operation since 1989.The company presently employs 512 people and generated ¥17.7 billion in salesin the year ending 31 March 2007;

• Toyota Boshoku Filtration System (Thailand) Co Ltd (Denso owns 40%). Thiscompany employs 858 people in the manufacture of oil filters;

• Tianjin Toyota Boshoku Automotive Parts (Denso owns 40%). This plantemploys 55 staff in China, making air cleaners and oil filters; and

• Toyota Boshoku Foshan Co Ltd (Denso owns 40%). Opened in July 2006, thisplant makes oil filters and employs 238.

In anticipation of greater emissions restrictions on diesel engines, coupled withincreased demand for diesel on grounds of fuel economy, Denso has been investing


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heavily in diesel particulate filters and other emission control technologies includinglean traps for oxides of nitrogen and urea selective catalytic reduction systems. Backin 2002, Denso developed a diesel particulate filter for Toyota’s dieselparticulate–oxides of nitrogen reduction system and it has continued to invest in thistechnology since then. During 2006, Denso added production capacity for ceramicsubstrates and diesel particulate filters at its Daian plant and in June 2007, Denso andRobert Bosch GmbH established a 50:50 joint venture to develop and manufacturediesel particulate filters in Wroclaw, Poland. The joint venture will be named AdvancedDiesel Particulate Filters SpZoo (ADIF). The objective is to jointly manufacture highlyefficient and cost-effective diesel particulate filters using Cordierite ceramics from2009. Each company will then market the filters independently.

In the first stage, a branch office for the joint venture will be established in Kariya,Japan, to proceed with filter development and production preparation. The jointventure having an initial equity of €8 million will start the planning of an engineeringand manufacturing location in Wroclaw, Poland. The joint venture will be led by twodirectors, Masakazu Tanaka from Denso and Teruo Komori from Bosch.

Denso was originally established as Nippondenso Co Ltd, having been spun off fromToyota Moro Co Ltd in 1949. From as early as 1953 it was involved in a technicalcooperation with Robert Bosch of Germany. The first overseas sales office wasestablished in Chicago in 1966, with branch offices in Los Angeles, California, andDetroit, Michigan. Further overseas ventures followed through the 1970s. Thecorporate name was changed to Denso Corp in 1996.

COMMENT:Denso is a global giant among automotive component suppliers, recording sales worthUS$30.6 billion in 2006. It has a long historical relationship with Toyota, the world’slargest automobile maker, which still owns around a quarter of the company andwhose companies are responsible for around 50% of Denso’s sales.

Although its mainstream filter activities are only as a minority partner, Denso islikely to play a leading role in the diesel particulate filter market as it develops overthe next few years, especially if Toyota can make breakthroughs with greateracceptance of diesel as the fuel of choice for automobiles and sports utility vehiclesin North America.

In the first half year ended 30 September 2007, Denso reported consolidated net salesof ¥1947.8 billion, a 14.5% increase from the previous year. Consolidated operatingincome totalled ¥169.1 billion, a 22.3% increase from the previous year and net incomewas 25.7% up at ¥118.3 billion. Much of this growth was due to the increase inoverseas automobile production for Japanese automobile manufacturers in 2007,especially in China. However, Denso also achieved increased sales to General Motorsand Ford in the Americas and Ford, Fiat, Opel and PSA Peugeot-Citroën in Europe.


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KEY FIGURES: DENSO CORP (2005–2008)

(¥ billion) Year ending 31 March

2005 2006 2007 2008*

Net sales 2800 3188.3 3609.7 3800

Of which Powertrain Control Systems 646.2 733.5 830.1

Operating income 213.9 266.6 303.1 308

Research and development expenditure 238.2 256.3 279.9 305

*estimated.


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DONALDSON1400 West 94th Street

Bloomington, MN 55431USA

Tel: +1-952-887-3131http://www.donaldson.com

KEY EXECUTIVES:William M. Cook, President and Chief Executive OfficerDennis D. Jandik, Vice President, Global Engine Original EquipmentManufacturer SalesJoseph E. Lehman, Vice President, Global Engine Aftermarket SalesLowell F. Schwab, Senior Vice President, Engine Systems and Parts

Donaldson Co Inc is a major designer and manufacturer of filtration systems andreplacement parts, specializing in the heavy duty market. Its products include air andliquid filters and exhaust and emission control products for mobile equipment, aircraftand defence equipment filters, in-plant air cleaning systems, compressed air and gaspurification systems, air intake systems for industrial gas turbines, and specialized filtersfor such diverse applications as computer disk drives, semiconductor processing, andindustrial hydraulic systems. The company has an extensive network of sales offices,distribution centres, and manufacturing facilities located in 35 countries.

It organizes its business in two segments: Industrial Products and Engine Products. TheIndustrial Products includes general industrial filtration systems, special applications(especially disk drive and semiconductor industry applications) and gas turbine systems.The Engine Products segment is split into original equipment and engine aftermarket.

The unit for original equipment manufacturers provides heavy duty filtration andexhaust solutions for construction, transportation, agriculture, mining, aerospace, andmining equipment manufacturers. The products are used to filter engine intake air,engine fuels, lubricants, and mobile hydraulic fluids, and treat engine exhaust byremoving noise and tailpipe and crankcase emissions.

Products incorporate proprietary and patented designs including PowerCore™ andSpiracle™, as well as proprietary filter media such as Ultra-Web and Synteq.

The engine aftermarket product line includes a broad line of replacement oil, fuel, air,coolant, transmission, and mobile hydraulic filters, accessories, and exhaustcomponents. Recent product line expansions include:

• PowerCore air cleaners for on- and off-road applications;• Donaldson Endurance™ air and lube filters to extend filter service intervals; and• US Environmental Protection Agency- and California Air Resources Board-

verified diesel emissions retrofit solutions.


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Donaldson sells its aftermarket parts to original equipment manufacturers’ parts andservice organizations, independent distributors, and private label marketers. It marketsits replacement filters and parts under both original equipment manufacturer’s brandsand the Donaldson brand. Applications include all brands of diesel-powered vehiclesand equipment, from pick-up trucks to off-road haul trucks, to on-road heavy-dutytrucks and buses, to military and civilian helicopters and airplanes.

Donaldson Co was founded in 1915 when Frank Donaldson Sr developed a simple aircleaner to solve a farmer’s tractor problems. In the late 1920s, crop fires caused byengine sparks fuelled its diversification into exhaust products. Success and innovationin agricultural equipment led directly to opportunities in the construction and miningmarkets and later to the on-road truck market.

By the 1950s, Donaldson had established worldwide sales and distribution throughlicensing agreements with overseas manufacturers. Its strong client relationshipsaccelerated its international growth nearly 40 years ago. Donaldson establishedoperations in the UK to support Caterpillar in 1958, and today it services the needs ofcustomers through operations in 19 countries. The acquisition of Torit Co in the early1970s propelled Donaldson into the dust collection business, which was furtherexpanded in 1987 with the acquisition of the Day Division of Carter-Day. Donaldsonhas developed products for diverse applications such as cleanrooms, semiconductorprocessing, and automobile and aircraft passenger cabins.

Due to rapid growth in the 1990s, a new distribution centre was opened in Rensselaer,Indiana, which is now the central shipping point for most of the company’s engine andindustrial replacement parts.

In the last two years Donaldson has invested more than US$150 million in new facilities andequipment. It has built two production plants in Wuxi, China—one for engine air filters andthe other for industrial filtration equipment. A second plant was completed in the CzechRepublic to produce industrial filtration equipment. The capacity of the main US distributioncentre in Rensselaer, Indiana, was increased by 50% and new distribution facilities were addedin Aguascalientes, Mexico; Johannesburg, South Africa; and Brugge, Belgium.

In October 2006, Donaldson launched an improved medium-flow fuel filter withmodular features. The modular filter has a single-base head assembly which is usedwith the modular components, including a water sensor, electrical heater, visual waterbowl, manual priming pump, and life indicator (electronic or visual). Additionally, thefilter can feature a DonaldsonTwist&Drain™ valve, interchangeable between the clearplastic bowl and the spin-on, to reduce maintenance costs. Modular fuel products areable to use different fuel media technologies. Depending on customer requirements,the filter can use traditional silicone-treated cellulose or synthetic media.

In September 2007, the company announced a partnership with Volant Cool AirIntakes Inc of Rancho Cucamonga, California, USA, to develop replacement filters for


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the light duty pickup and automobile marketplace. Volant will develop filters for all itscurrent cool air intakes, as well as filters to fit all of its competitor’s aftermarket airintake systems using Donaldson’s patented PowerCore™ filtration technology.

COMMENT:Donaldson has moved over recent years to establish a good mix between industrialand engine filtration, and between domestic and overseas sales. This has reduced thecompany’s exposure to individual markets and in turn the company has grown rapidly,increasing its sales by US$500 million in the period 2004–2007.

Donaldson aims to position itself as a technology leader, spending heavily on researchand development, developing its own proprietary media and applying these media in awide range of applications. This differentiates it from many filter elementmanufacturers who rely on filter media suppliers to develop and supply the technicalsolutions that will raise performance levels. At present, Donaldson does not competedirectly with the volume automobile filter suppliers, preferring to keep its focus onheavy duty applications. But as performance demands increase in that marketDonaldson’s media are finding increasing application. As margins improve, it may proveattractive for Donaldson to address this market more directly in the future, especiallyif diesel engine use increases in the US market.

KEY FIGURES: DONALDSON (2003–2007)

(US$ million) Year ended 31 July

2007 2006 2005 2004 2003

Net sales 1918.8 1694.3 1595.7 1415 1218.3

Of which engine products for originalequipment manufacturers 518 492 461

Of which engine aftermarket 566 499 463

Cost of sales 1314 1137.7 1090.2

Gross margin 604.9 556.6 505.6


Interest expense 14.6 9.9 9.4

Net earnings 150.7 132.3 110.6 106.3 95.3

Research and development 36.5 33.9 32.2


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DUPONT SEPARATION SOLUTIONSDuPont1007 Market StreetWilmingtonDE 19898USATel: +1-800-438-7225Fax: +1-302-773-2085http://www.dupont.comhttp://www.SeparationsSolutions.DuPont.com

KEY EXECUTIVES:Ellen J. Kullman, Executive Vice President, DuPont Safety and Protection

Matthew L. Trerotola, Vice President and General Manager, DuPont Nonwovens

DuPont manufactures filters and filter media for the automotive and many othermarkets. Its filter products are located within DuPont Separations Solutions (DSS),which is a new market initiative within DuPont Nonwovens. DuPont Nonwovens isitself part of DuPont’s Safety and Protection business segment.

DSS has been established following the introduction of an innovative technology calledHybrid Membrane Technology. This new media is for air and liquid filtration and isaimed to fill the performance gap between traditional nonwovens and microporousfilms. Comprised of continuous sub-micron fibres and available on a commercial scalein the form of membrane-like sheet structures, DuPont Hybrid Membrane Technologyaims to deliver an optimal balance of flux/barrier performance.

DuPont Separations Solutions’ air filtration product portfolio includes:

• DuPont™ BarriRFlux™ with Hybrid Membrane Technology for the healthcareand life sciences markets;

• DuPont™ Premium Air Filtration Products for reduced energy consumptionand reliable contamination control in commercial heating, ventilation and air-conditioning applications;

• DuPont™ Premium Interior Air Filters (cabin air filters) for automotiveapplications; and

• various composite structures aimed at a wide variety of applications in thetransportation and industrial markets.

DuPont Separations Solutions’ liquid filtration product portfolio includes:

• DuPont™ BarriRFlux™ for critically clean applications in industries such as lifesciences, food and beverage, and areas where contamination prevention andprocessing are a top priority;


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• traditional DuPont Nonwoven technologies, such as DuPont™ Xavan® (spunbondpolypropylene), Sontara®, and Tyvek® for the construction of composite structuresand support media for food grade required applications as well as large particleremoval applications commonly found in many industrial applications.

Established in Wilmington, Delaware, USA, in 1802 by the French émigré EleuthèreIrénée du Pont, the company that we now know as DuPont began life producingexplosives. Today, operating in more than 70 countries, DuPont offers a wide range ofinnovative products and services for markets including agriculture, nutrition,electronics, communications, safety and protection, home and construction,transportation, and protective apparel. The company generated revenues of US$27.4billion in 2006 and employs 59 000 worldwide.

COMMENT:DuPont is taking a different approach from its fellow filtration media suppliers. As wellas offering filter media to filter manufacturers, it is packaging its own filter units for saledirectly to original equipment manufacturers. This could lead to complicatedrelationships with customers who become competitors but DuPont is already wellplaced to deal direct with original equipment manufacturers in the automotive sector,as it already supplies a wide range of advanced materials used in vehicle manufacturing.

KEY FIGURES: DUPONT SAFETY AND PROTECTION (2004–2007)

(US$ million) Three months ended 30 September

2007 2006

Net sales 1408 1385

Operating income 313 293

(US$ million) Nine months ended 30 September

2007 2006

Net sales 4244 4158

Operating income 922 869


2006 2005 2004

Net sales 5414 5072 4542

Operating income 1080 982 837


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EBERSPÄCHER GROUPJ. Eberspächer GmbH & Co KGEberspächerstraße 24D-73730 EsslingenGermanyTel: +49-711-9390-0Fax: +49-711-9390-634E-mail: [email protected]://www.eberspaecher.com

KEY EXECUTIVES:Heinrich Baumann, President and Managing Partner

Martin Peters, President and Managing PartnerDr Thomas Wünsche, Chief Executive Officer, Exhaust Technology

The Eberspächer Group is an independent company, founded in 1865 and withheadquarters in Esslingen am Neckar. It concentrates on two core competences:exhaust technology (catalytic converters, particulate filters, silencers) as well as pre-heaters and add-heaters for passenger automobiles, transporters, trucks, busses,building vehicles and boats. Throughout its 140 year history, members of the foundingfamily have run the company and still today own all the shares. More than 5800employees in 16 countries aim to work in close cooperation with the majorautomotive manufacturers of the world.

In exhaust technology the company is one of the four largest suppliers worldwide. Itsupplied its first particulate filters in the 1980s but these were only suitable forcommercial vehicles. It started producing diesel particulate filters for passengerautomobiles in 2004, supplying coated filters to Renault for the series production ofthe Vel Satis (and later for the Laguna model).

In 2007 Eberspächer acquired Purem Abgassysteme GmbH & Co KG, based inUnna, Germany, from Daimler. Purem is a system integrator in the area of after-treatment of exhaust emissions for commercial vehicle. In recent years, Purem hasestablished itself as a system integrator for Daimler and generated a turnover of€80 million in 2006 with 135 employees.

Eberspächer is currently developing an active heat management system: atechnology which makes the catalysts, soot filters and selective catalytic reductionsystems (for purification of oxides of nitrogen) more efficient and less dependenton engine management. Purem is also a developer of urea dosing systems. With thecombined know-how of these two exhaust emissions specialists, Eberspächer nowcovers the entire span of exhaust emissions after-treatment: from the dosing of theurea into the selective catalytic reduction converter through thermal managementup to the acoustics.


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COMMENT:The financial performance of Eberspächer is blighted by a heavy-loss-making subsidiaryin North America and high levels of bank loans related to recent capital investments.To reduce costs, the company is directing its procurement policies more intensively onthe low-wage countries. In addition to the Chinese market, the company is looking atTurkey and India as procurement resources of the future. While, the company is alsoplanning to reduce staff numbers at its Neunkirchen facility during 2007, managementattention will need to be focused on increasing the profitability of the exhaustsubsidiary Eberspächer North America Inc.

The company is anticipating a moderate increase in sales development in 2007,continuing the strong improvement in sales from 2005 to 2006. This will come, in part,from further increasing demand for diesel particulate filters. The acquisition of Purempositions the company well to address the challenges of combining particulatefiltration with reduction of emissions of oxides of nitrogen.

KEY FIGURES: EBERSPÄCHER (2005–2006)

(€ million) Year ended 31 December

2006 2005

Net sales 2023 1639

Of which Exhaust Technology 1696 1335

Operating result 29.7 15

Financial result* (15) (11.9)

Net profit 7.2 0.4

Research and development expenditure 63.5 66.4

Number of employees (at 31 December) 5824 5925

*The financial result is the balance of interest received and interest paid.


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EMITECEmitec Gesellschaft für Emissionstechnologie mbHHauptstraße 128D-53797 LohmarGermanyhttp://www.emitec.com

KEY EXECUTIVES:Wolfgang Maus, Chairman

Andreas Aumüller

Emitec Gesellschaft für Emissionstechnologie mbH is a 50:50 joint venture betweenSiemens and GKN. It was founded in 1986 with three employees. Today, the companyis a world leader in the metal substrate market for vehicle exhaust gas catalysts. Sinceits foundation Emitec has sold nearly 100 million metal substrates of the highest qualitywith, it claims, no field failures.

The company employs around 800 people in Lohmar and Eisenach, Germany; at theFountain Inn plant in South Carolina, USA; and at the plant in Pune, India.Development centres are based in Lohmar and Eisenach. Emitec’s most importantmarkets are in Europe, North America and Asia. The company has subsidiaries inChina, Japan, Korea and Vietnam.

The company’s customers include every major car, truck and motorcycle manufacturerfrom across the world. Emitec owns over 1700 patents worldwide.

The company’s product range includes metal catalyst substrates and diesel particulatefilters for engine exhaust gas after-treatment.

Emitec’s particulate matter separator (PM-Metalit™) works on the principle of bypassflow deep bed filtration. The filter consists of vane-shaped substructures andinterleaved corrugated layers of sintered metal fleece acting as a storage medium forthe particles. Due to the vane-shaped structures a portion of the exhaust gas stream isdiverted through the fleece into the adjacent channels. In the process the particulatesare separated into the fleece layer and thus filtered. A second part of the exhaust gasflow is diverted into the fleece and past the fleece layer to deposit mostly fine particles(diameter less than 400 nm) due to diffusion effects. The deposited particles aresubject to continuous combustion by the nitrogen dioxide present at exhausttemperatures in the region of 200°C.

Since 2004 more than 100 000 PM-Metalit™ particulate separators have been installedin various production automobile diesel engines and as retrofits.

A large number of automobile types can be retrofitted with the PM Metalit™. Inaddition to reducing the particulate mass by more than 30%, the number of ultra-fine


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particles, which are particularly damaging to health (diameter less than 400 nm), isreduced by some 80%.

The normal regeneration cycle of diesel particulate filters requires comprehensivemodification of the vehicles’ engine control systems. For that reason conventionaldiesel particulate filters fitted as original equipment can only be retrofitted withconsiderable time, effort and cost. There is no regeneration cycle with the PM-Metalit™ unit. Another advantage of the system is that it cannot clog.

Revenue for 2007 is expected to total €220 million, with 99% of those sales in theautomotive industry. Major customers include AvtoVaz, BMW, Daewoo, Daimler, Fiat,Ford, Honda, Hyundai, the truck group MAN, Porsche, PSA Peugeot-Citroën, Renault,Toyota, and the Volkswagen Group

COMMENT:Emitec offers an alternative technology for diesel particulate filtration, with a metallicfilter element in place of the ceramic element favoured by other suppliers. Emitecclaims this offers better filtration of the smallest particulates. Emitec supplies the filterin combination with oxidation catalysts and has been supplying units to the MAN truckgroup and to BMW for its diesel-engine automobiles. The opportunity for retrofittinghas become more attractive thanks to the introduction in Germany at the start of2007 of one-off vehicle licence fee credits of €330 for diesel vehicles that areretrofitted with diesel particulate filters and Emitec’s products are well suited toretrofitting.

Construction of a production facility with a floor space of 0.6 ha (6000 m2) wasstarted in March 2007 at Emitec’s plant in Eisenach, Germany. This €10 millioninvestment will increase capacity for the manufacturing of so-called “turbulent”LS-Design® oxidation catalysts and PM-Metalit™ diesel particulate filters, inanticipation of further increases in demand.


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FAURECIA2, rue HennapeF-92735 Nanterre CedexFranceTel: +33-1-7236-7000Fax: +33-1-7236-7007http://www.faurecia.com

KEY EXECUTIVES:Yann Delabrière, Chairman and Chief Executive Officer

Jean-Marc Hannequin, Executive Vice President, Exhaust Systems Product Group

As a global player in the automotive industry, Faurecia counts all the world’s majorautomakers among its customers. With sales of almost €11.6 billion in 2006, theGroup ranks second among automotive suppliers in Europe and eighth in the world.The company’s stock is traded on the Euronext Paris SA Eurolist*, although themajority shareholder is PSA Peugeot-Citroën with over 70% of the stock.

Faurecia’s 60 000 employees in 28 countries are involved in the design and productionof six major vehicle modules, namely seats, cockpits, door panels, acoustic packages,front ends and exhaust systems. Within the exhaust systems group it produces dieselparticulate filter systems and was part of the team, with Rhodia and Ibiden, whichintroduced the first passenger automobile diesel particulate filters in the Peugeot 607in 2000. This used a fuel-borne catalyst system which has been fitted to numerous PSAPeugeot-Citroën vehicles and the Ford Focus C Max.

Since then Faurecia has developed additional diesel particulate filter technologicalsolutions including a wash-coated filter in which the catalyst is coated directly on thefiltration surface. Particles are trapped on the filter and partially eliminated by chemicalreaction catalysed by the coatings, obviating the need for a fuel additive dosing system.The remaining particles are removed by regular burning at high temperatures. Thissystem has been chosen for the Mercedes-BenzA, B, C and E Class diesel automobiles.

Faurecia has also developed a remanufacturing service for diesel particulate filters atits Hérimoncourt plant. This service reconditions all diesel particulate filter typesbased on silicon carbide substrates and Rhodia additives. Any particulates are burnt offat 600°C in a hot air stream, and then the units are cleaned in water and dried beforeundergoing a thorough integrity testing regime. The remanufactured units are 30 to50% less expensive than a new diesel particulate filter. Faurecia is aiming to have thecapacity to process 1000 units a day.

*Euronext NV is a pan-European stock exchange based in Paris, France. Since April 2007 it has been merged withNYSE Group (owner of the New York Stock Exchange) forming NYSE Euronext.


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Faurecia came into being when ECIA acquired Bertrand Faure in 1998. Peugeot hadcreated ECIA in 1987 by merging Aciers et Outillage Peugeot and Peugeot Cycles toestablish an automotive components business. ECIA, short for Equipements etComposants pour l’Industrie Automobile, was then listed on the Paris Stock Exchangealthough Peugeot maintained majority control and remained the company’s primarycustomer. In 2001, Faurecia acquired the automotive division of Sommer Allibert,thereby forming Europe’s leading automotive component supplier.

COMMENT:Faurecia was present at the birth of the modern diesel particulate filter for passengerautomobiles. It has diversified its technical capabilities to add diesel particulate filterswith coated substrates, thus allowing it to supply a wider range of vehicles andmanufacturers and consequently has enjoyed rapid sales growth in the last six years.The company produced 440 000 diesel particulate filters in 2004 and sold more thanone million units in 2005.

Overall Faurecia is currently operating at a net loss and has relatively high levels offinancial debt (gearing ratio of debt divided by shareholder equity is 1.63). It isaddressing its high cost of sales by strategically redistributing its manufacturing basefrom high-cost regions of Europe to low-cost European countries. Although its sales ofdiesel particulate filters have grown enormously in recent years, because thesubstrates are so costly to buy in, the overall returns on this business are not as high asif the company was manufacturing the substrates itself.

KEY FIGURES: FAURECIA (2005–2007)

(€ million) Six months ended 30 June Year ended 31 December

2007 2006 2006 2005

Net sales 6512 5980 11649 10979

Of which Exhaust Systems 1548 1346 2659 1961

Excluding monoliths* 727 661 1279 1111

Operating income 63 85 69 267

Net income (loss) (41) (46) (183) (448)

*Monoliths are the high value ceramic substrates and catalytic converters incorporated in exhaust systems and diesel particulate filters.


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FIBERWEB PLCFiberweb Global Headquarters1 Victoria VillasRichmond-on-ThamesLondonTW8 2GWUKTel: +44-20-8439-8310Fax: +44-20-8605-3810E-mail: [email protected]://www.fiberweb.com

KEY EXECUTIVES:Daniel Dayan, Chief Executive Officer

Gianluigi Fornoni, President, EuropeDerek Chan, President, Asia

David Rousse, President, Fiberweb AmericasCarsten Heldmann, Head of Research and Development

Fiberweb is one of the world’s largest and leading suppliers of high performance,speciality nonwoven fabrics. Nonwoven materials developed, manufactured andmarketed by Fiberweb are used in a wide variety of everyday products such as filters,wipes, baby diapers, fabric softeners, construction products and protective clothing toname only a few. Fiberweb has a strong market position in many of its product andapplication areas using a variety of leading manufacturing technologies, includingseveral proprietary processes. The company manufactures a complete range ofmodern nonwoven products, from spunbond, meltblown, hydro-entangled, airlaid andcarded nonwovens, to sophisticated multidenier fabrics and complicated laminates andcomposites. With revenues of over a billion dollars and 3000 employees worldwide,the company has a strong global position with operations in North and South America,Europe, Africa, the Middle East and Asia.

The origins of Fiberweb as we know it now can be traced back to 1989 when BBAembarked on a rapid programme of acquisitions in the nonwovens industry, starting withthe acquisition of Reemay Inc in the USA. In 1995 it acquired Holvis and Terram, and thefollowing year added the hygiene business of Corovin. BBA acquired Bidim, a geosyntheticcompany in Brazil, in 1997 and consolidated its position in the US market in 1998 with theacquisition of Veratec, a hygiene and industrial producer. BBA strengthened its industrialdistribution network by acquiring Snow Filtration in 2000, and two years later acquiredSuperior Nonwovens. In 2002 BBA began production in China, with the construction ofan airlaid facility on a greenfield site. The division was re-branded as BBA Fiberweb in2003. The company added a couple more wipes businesses before Fiberweb’s corporateheadquarters was relocated from the USA to London in 2005, ahead of a demerger fromBBA in November 2006, which resulted in the BBA Fiberweb division being renamedFiberweb plc, with an independent listing on the London Stock Exchange.


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In May 2007 Fiberweb plc completed the sale of its hygiene wipes business toAhlstrom for €65 million (£44.2 million). The divestment included operations in theUSA, Spain and Italy manufacturing wipes for baby care, personal care and householdapplications. The business had 2006 revenues of around £83 million a year andemployed approximately 400 people.

COMMENT:Fiberweb is the third largest nonwovens supplier in the world and consequently asignificant supplier of filtration media to the automotive filter industry. Of particularinterest are its Qualiflo polyester fibre filtration media which is used for highperformance applications in engine air intake filtration and the AQF range of cabin airfiltration media. The AQF media use a proprietary technology to fix functional materialssuch as zeolites and activated carbon in the three-dimensional fibrous structure. Theresulting media benefit from the additional performance of the functional materials yetcan still be formed and pleated as required for specific applications.

Fiberweb has undergone significant restructuring since the demerger from BBA.Having disposed of its wipes business, Fiberweb has placed increasing emphasis on itsfiltration business and we can expect the company to become a higher profile playerin filter media in the coming years. However, it faces some difficulties before it canstart to make an increased impression in the sector. In the second half of 2007, thecompany issued a warning which indicated 2007 profits would come in some£8 million below the anticipated figure of £9 million. Restructuring has beenaccelerated but the share price has dipped dramatically, leaving the companyvulnerable to takeover. Early in 2008, Fiberweb announced it was in discussion withthe Israeli nonwovens company Avgol about a possible £122 million takeover.

KEY FIGURES: FIBERWEB (2005–2007)

(£ million) Six months ended 30 June Year ended 31 December

2007 2006 2006 2005

Net sales 236.7 261.4 584.7 603.3

Cost of sales 191.6 208.4 476.6 511.9

Gross profit 45.1 53 108.1 72.8


Net profit 0.5 4.2 6.6 23.6

These figures are the underlying trading results before the considerable restructuring costs and non-recurring items.


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FILTERTEK INC11411 Price RoadHebron, IL 60034-8936USATel: +1-815-648-2416Fax: +1-815-648-2929http://www.filtertek.com

KEY EXECUTIVES:David Atkinson, Vice President of Automotive Products

Filtertek designs and manufactures custom filters for major original equipmentmanufacturers across the globe. It employs advanced manufacturing processes tocreate products in any shape or configuration from simple traditional components tohighly complicated devices. The company provides a comprehensive range of servicesincluding design, modelling, prototyping, building, and testing. In November 2007,Filtertek Inc was sold by EscoTechnologies to Illinois Tool Works (ITW).

Filtertek offers filtration products in three main areas: automotive, medical andcommercial. Rather than producing standard products for the automotive sector,Filtertek specializes in the design and manufacture of custom products.

Its automotive filters cover a wide range of specialist duties and include the following:

• fuel injector filters;• in-tank fuel filters;• in-line fuel filters;• air-conditioning system filtration;• power-steering system filtration;• transmission system filtration (including main sump filters, valvebody filters and

solenoid filters);• suspension system filters; and• anti-lock braking system filtration.

Most of these systems require custom-designed products and Filtertek works closelywith the customers, who are original equipment manufacturers, from materialsselection through design and manufacturing to delivery.

The company has expertise in materials selection, with experience of applying thefollowing filtration media:

• synthetic woven screens and extruded plastic netting;• wetlaid paper, such as microfibre glass and cellulose; • drylaid nonwovens, such as meltblown and spunbond; • depth media, such as needlefelt and meltblown;


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• asymmetrical-depth media;• composites and laminates, such as felt-screen, and sonically bonded

meltblown nonwovens;• microporous membranes;• adsorbents such as activated carbon and water absorbing polymers; • polytetrafluoroethylene-coated screens for water/oil separation; and • stainless steel screens.

With well-equipped converting capabilities and a state-of-art testing laboratory,Filtertek focuses its own research and development on specially formulated high-performance media.

Filtertek has exclusive plastic-moulding technology for filter housings and straightmoulded components. This allows components to fit in essentially any given spacewith any geometric shape. Materials handled include:

• acrylic;• acetal;• polypropylene;• polyethylene;• low-density polyethylene (LPDE);• acrylonitrile–butadiene–styrene (ABS);• methyl methacrylate/acrylonitrile–butadiene–styrene (MABS);• polyamide; and• polyethylene terephthalate (PET).

Filtertek was originally founded in 1965 in Chicago as the Nylon Filter Corp. In 1968the business relocated to Hebron, Illinois, and in 1975 the company opened its firstoverseas manufacturing operation establishing a new Puerto Rico manufacturing plant.In 1982 a plant was opened in County Limerick, Ireland. The company went public in1983 and opened a German sales and engineering office in 1987. A new Puerto Ricoplant was opened in 1989. In 1992 Schawk Inc acquired a majority interest in thecompany but then sold the business to Esco in 1997 for US$92 million. Under Esco’sownership, Filtertek established Filtertek do Brazil in 1999 and in 2003 closed thePuerto Rico plant and established a manufacturing centre in Mexico.

In November 2007, its parent company Esco Technologies Inc announced that it hadcompleted the sale of the filtration portion of Filtertek Inc to ITW Inc forUS$77.5 million in cash. The Tek Packaging (Tek Pack) division of Filtertek was notincluded in the transaction.

Filtertek’s 2007 consolidated sales and EBIT were US$98.5 million and US$6.2 million,respectively, with US$82.8 million in sales and US$5.1 million in EBIT from the filterbusiness, and US$15.7 million in sales and US$1.1 million in EBIT from Tek Pack.


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ITW is a Fortune 500 company that produces engineered fasteners and components,equipment and consumable systems, and speciality products. It employs nearly 55 000people in 750 business units. With operations in 49 countries, it is based in Glenview,Illinois, USA.

COMMENT:Filtertek specializes in the more unusual filtration duties in the automotive sector, workingclosely with its customers to develop custom solutions. Unfortunately that businesswasn’t yielding high enough profit margins for parent Esco Technologies and so thecompany has been sold on to the much larger international conglomerate ITW. ITW hasan ambitious acquisition-fuelled growth strategy, and is actively working to diversify itsproduct range. Nevertheless it still derives 16% of its revenue (US$14.1 billion in 2006)from the automotive sector, and this should prove beneficial for Filtertek.


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FRAM

KEY EXECUTIVES: Chris Stephens, President, Consumer Products GroupAdriane M. Brown, President and Chief Executive Officer,Transportation Systems Group

Fram is one of the biggest and longest established names in the world of automotivefiltration. In North America the Fram brand is manufactured and sold by the company ofthe same name, now part of Honeywell’s Consumer Products Group within theTransportation Systems Division of Honeywell International Inc. HoneywellTransportationSystems has operations in 19 countries and comprises three business areas: Garrett EngineBoosting Systems, Consumer Products Group and Friction Materials. Its products includeGarrett® turbochargers; Jurid™ and RoadTuff® brake products; Fram® oil, air, transmissionand fuel filters; Prestone® automobile care products; Autolite® spark plugs; Holts®

automobile care and repair products; Starte Pilote® engine starting aids and maintenanceproducts; Redex® fuel additives; and Simoniz® appearance products.

Honeywell’s shares are traded on the New York, London, Chicago and Pacific StockExchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average.

Fram has six North American research and development, manufacturing, and marketinglocations in Greenville, Ohio; Perrysburg, Ohio; Clearfield, Nevada; Danbury,Connecticut; Mississauga, Ontario, Canada; and Stratford, Ontario, Canada. The Framteam continues to manufacture and market a variety of oil, air (intake and cabin) and fuelfilters, as well as many automotive accessories such as positive crankcase ventilation(PCV) valves, crankcase filters and transmission modulators. As well as producing filtersunder the Fram® brand, the company manufactures a range of private-label filters soldthrough warehouse distributors, mass merchandisers and parts retailers.

In February 2004, Fram introduced a high performance air filter called Fram®

AirHog™—a rugged washable and reusable air filter that helps improve engine airflowand increases the vehicle’s power. Unlike disposable air filters made with paper, theFram® AirHog filter media is comprised of a quadruple layer of precision woven cottongauze. The increased airflow can result in greater power and acceleration for bettervehicle performance. According to Fram, one AirHog air filter is equivalent to 20disposable filters or 400 000 km (250 000 miles), which means costs savings of morethan US$200 in regularly scheduled filter changes over the life of a vehicle.

Honeywell Consumer Products Group39 Old Ridgebury Road

Danbury, CT 06810USA

Tel: +1-203-830-7800Fax: +1-203-830-7884http://www.fram.com

HoneywellTransportation Systems23326 Hawthorne Boulevard, Suite

200Torrance, CA 90505

USATel: +1-310-791-9170

http://www.honeywell.com


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In October 2006, Fram introduced the Fresh Breeze™ Cabin Air Filter. This is believedto be the first automotive cabin air filter that not only filters contaminants like roaddust and pollen, but also absorbs odours using baking soda. The Fresh Breeze cabin airfilter can filter 98% of contaminants in the 5–100 µm size range from the air thatpasses through the filter (human hair measures 50 µm). Additionally, baking soda helpsabsorb odours as they pass through the filter and freshens up the air before driversand passengers breathe it in.

The SynWash™ long-life air filter is designed to perform 20 times longer than astandard-grade disposable air filter. The long-life air filter features SynWash fibretechnology, which enables the filter to be washed for like-new performance. Theproduct, which also features a heavy gauge corrosion-resistant stainless steel screenand a high-density gasket for increased durability, filters 99% of harmful particles andhelps eliminate the need for consumers to purchase a disposable filter every year. TheSynWash filter comes with an easy-to-use washing tool. The product can be cleanedusing a garden hose and liquid dish soap and reinstalled in just a few simple steps.

The history of Fram dates back over 70 years when the original chemists, FrederickFranklin and T. Edward Aldam, invented an easily-replaceable oil filtering element at theirlaboratory in Providence, Rhode Island, USA. Automotive oil filters of various types hadbeen on the market for nearly ten years, yet were difficult to install, change and clean.Franklin and Aldam set out to solve these problems with their revolutionary filters. Thecompany was first incorporated in 1934. In 1956, Fram engineers introduced thecompany’s first spin-on oil filter, combining the filter cartridge and housing in a singleunit for much greater speed and convenience of replacement. This quickly became theuniversal standard in oil filter design. Fram was acquired by the Bendix Corp in 1967. In1983 the Bendix Corp was acquired by Allied Corp (later to become AlliedSignal).

In 1984, AlliedSignal entered into a joint venture with Sogefi in Europe, creating abusiness owned 60% by Sogefi to run the former AlliedSignal European filteroperations. This was followed by the sale of Europarts Industria de Autopecas Ltda inBrazil to Sogefi in 1991. In 1999, AlliedSignal merged with Honeywell, and the businesstook the name of Honeywell; the following year, Sogefi bought out the remaining equityin the European operations.

COMMENT:Since coming into the AlliedSignal/Honeywell family, Fram has concentrated its effortson its strength: the North American market. While having the reputation of being thebiggest low-cost volume filter maker in the USA, it has added premium product rangesin air and oil filters, with the promise of longer service intervals and/or performanceimprovements, and continues to sell huge volumes of its standard products throughoriginal equipment manufacturers, original equipment spares and aftermarket channels.The company has developed a strong range of cabin air filters, recognizing the stronggrowth in this market sector, and this has contributed to growth in sales in recent years.Although the US aftermarket looks set to continue to grow, it is a competitive area and


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some of its competitors have the advantage of significant exposure to faster growingoverseas markets. Fram has the advantage of a massive US manufacturing capability, anda broad range of market access points—original equipment manufacturers, originalequipment spares, Fram-branded aftermarket sales and private-label aftermarket sales.

KEY FIGURES: HONEYWELL INTERNATIONAL INC (2002–2007)

(US$ million)Three months ended

30 SeptemberNine months ended

30 September

2007 2006 2007 2006

Net sales 8735 7952 25314 23091

Of which Transportation Systems 1226 1111 3683 3399

Income before tax 837 734 2383 2017

Of which Transportation Systems 124 129 437 436


2006 2005 2004 2003 2002

Net sales 31367 27652 25593 23095 22261

Of which Transportation Systems 4592 4505 4323

Income before tax 2798 2296 1623

Of which Transportation Systems 574 557 575

Employees at year end 118000 116000 109000


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FREUDENBERG NONWOVENSFV Verwaltungs-KGHöhnerweg 2–4D-69469 WeinheimGermanyTel: +49-6201-80-5009Fax: +49-6201-88-5009E-mail: [email protected]://www.freudenberg-nw.com

KEY EXECUTIVES:Bruce Olson, Chairman, Board of Management

Georg Brasch, Board of ManagementDr René Wollert, Board of Management

Peter Adam, Manager, Automotive Filters Europe, Freudenberg NonwovensBarry F. Kellar, Vice President and General Manager, Freudenberg Nonwovens

Filtration Division, North AmericaTorsten Maschke, General Manager, Corteco GmbH

Dr-Ing Heinz Reinhardt, Application Engineering Manager, Freudenberg Nonwovens

The Freudenberg Group comprises 14 business groups operating independently invarious markets all over the world. It employs over 33 000 people worldwide andgenerated sales of more than €5 billion euros in 2006. It supplies seals, vibration controltechnology components, filters, nonwovens, release agents and lubricants to almost allof the world’s automakers, and the significance of customers from other branches ofindustry, such as mechanical and plant engineering, the energy and chemical industry orthe medical and pharmaceutical sector, is continually gaining ground. It is a familycompany, owned by some 300 heirs to the founding father Carl Johann Freudenberg.

The filters business is a division within Freudenberg Nonwovens, which comprises 23production facilities in 13 different countries, employs over 4800 people and generatesannual revenues of over US$1 billion. Freudenberg Nonwovens (or Vliesstoffe) was notonly one of the first to introduce nonwovens to the market, but is the largest and mostdiverse manufacturer of nonwovens in the world today. Freudenberg Nonwovensproduces filter media (under the Viledon umbrella brand) which are widely used inautomotive filtration and cabin air filters (under the MicronAir brand).

The Viledon product range covers air intake filtration media and advanced media foroil and fuel filtration, where engineered nonwovens can surpass the performance andlifetime of cellulose papers, which are traditionally used in oil and fuel filters.

Freudenberg has developed its pluratexx media for oil filter applications. This is madefrom 100% thermally bonded polyester fibres that are highly resistant to aggressivehigh performance motor oils. Due to its higher dirt retention volume, the filters lastmuch longer, and the service intervals can be extended.


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Freudenberg’s JetSpin filter media enhance the lifetime of cellulose papers used indiesel fuel filters. These polybutylene terephthalate (PBT) nonwovens are laminated tothe upstream side of the paper and act as a high capacity pre-filtration layer and alsoimprove water separation. Again, nonwovens increase the lifetime of the filter.

The company first introduced cabin air filters to German automobile manufacturers in1989 and now sells to both original equipment manufacturers and the aftermarket, andis the market leader in this sector. MicronAir particle filters provide protection againstpollens, road dust, abraded particles, soot, bacteria, industrial dusts and other ultra-fineparticles that may be inhaled. MicronAir combi-filters have a layer of activated carbonwhich provides additional protection against exhaust fumes, unpleasant odours andother contaminants.

In October 2006, Freudenberg announced plans for its MicronAir filters to bemarketed by Freudenberg’s Corteco aftermarket sales organization to theindependent European automobile parts aftermarket under the Corteco umbrellabrand name. Corteco, founded in 1996, has a total of ten offices located in Germany,Italy, France, the UK, Spain, Sweden, Singapore, the USA, Mexico and Brazil. It also hasrepresentative offices in Poland, Turkey and, from 2007, Russia and North Africa.

In 2006, Freudenberg Nonwovens made significant investments in new productionfacilities, converting a spunbonded line in Kaiserslautern, Germany, and modernizingthe wetlaid line in Neuenberg, Germany.

COMMENT:Freudenberg is the leading nonwovens supplier in the world, and consequently a significantsupplier of filtration media to the automotive filter industry. The increasing uptake ofsynthetic media in mainstream engine filtration duties will favour the larger nonwovenssuppliers, especially those with the strongest portfolios of proprietary technology.

Freudenberg has a global capability and even has a presence in the Japanese marketthrough its longstanding involvement in the Japan Vilene Co. This provides access tothe full range of automobile makers and should allow the company to maintain itsgrowth path as demand fluctuates around the world.

Freudenberg was quick to spot the potential in cabin air filtration and its MicronAirfilters have established a market leadership position. Competition is much stronger inthis sector now, although the market as a whole is still growing as the concept of cabinair filtration becomes universally adopted in new vehicles and further technicaldevelopments are implemented in the drive to achieve higher standards in cabin airquality. A strong aftermarket will develop in this sector as well, although pricecompetition is likely to be particularly strong here.



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KEY FIGURES: FREUDENBERG (2002–2006)

(€ million) 2006 2005 2004 2003 2002

Net sales 5053 4837 4418 3867 3918

Of which Nonwovens 1017 995 956 960 924

Consolidated profit 219 202 184 108 152

Employees* 33526 33385 32004 28479 27693

Of which Nonwovens 5575 5540 5398 5504 5320

*As at 31 December.


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HELSA-AUTOMOTIVEHelsa-Automotive GmbH & Co KG

Helmut-Sandler-Straße 6 D-95482 Gefrees

Postfach 1190, D-95480 Gefrees Germany

Tel: +49-9254-2752-53 Fax: +49-9254-2752-30

E-mail: [email protected]://www.helsa-automotive.de

KEY EXECUTIVES:Christian Uhlik, Chief ExecutiveAnna-Maria Weiß-Ziegler, Managing Director

Cabin filter specialist Helsa-Automotive employs around 350 people in Germany andthe Czech Republic, and recorded turnover in 2006 of approximately €50 million.

The company is based in Gefrees, Germany, and was owned by the Munich-basedinvestment company Schoeller Metternich Beteiligungen (SMB) until the end of2007, when Mann + Hummel announced its intention to acquire the company witheffect from the end of the year. Approval for the takeover was received from theregulatory authorities in late December 2007. Helsa owns 40% of a joint venture inthe USA with Wix Filters, based in Gastonia, North Carolina, USA.

Helsa supplies directly or indirectly high quality filter systems for the passengercompartment to virtually all motor vehicle manufacturers. Its sales are recordedprimarily in Europe and the USA.

Its main product range is cabin air filters which are available in three forms:

• simple particle filters;• odour filters using activated carbon; and• Combi-filters combining particle and odour filtration.

Since 1995 Helsa has extended its product line with the helsasorb® passive sorptionsystem for the automobile interior—an activated carbon matrix that is protected bypatent. Its odour and moisture adsorbing properties improve existing seating andcarpeting systems in vehicle interiors.

In 2003, a new filter generation was announced for reducing emissions in the vehicle:technopor® is designed particularly for the engine air systems of internal combustionengines. Additional applications are those in which volatile hydrocarbons are to beconsolidated or fractionated.


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The technopur filters consist of extruded activated carbon monoliths in honeycombstructures and are characterized by:

• high form stability;• low pressure drop;• temperature stability; and• high capacity for hydrocarbons.

The design of these filters can be varied with regard to length, cell design anddimensions of the cross-section, and can be tailored to the individual application.

Helsa’s origins go back to 1947 when Helmut Sandler founded a company (Helsa-Werke)for the manufacture of shoulder pads for clothing. In the mid-1970s, Helsa began todevelop technical products based on activated carbon with textiles. From there, it wasonly a small step to also consider filters for automotive air conditioning systems. Thismarked the birth of helsatech-Kfz, which later turned into helsa-automotive.

In 1991, helsa-automotive supplied the first odour filter in a series for the S-class ofMercedes Benz. At that time this development was a world innovation in theautomobile sector.

With continual development and a new series of products, helsa-automotive hasevolved into one of the leading manufacturers of cabin air filter systems. Since 1991over 50 million filter systems have been manufactured in its production facilities inGermany, the Czech Republic and North America.

In July 2001, the automobile activities of the Helsa-Werke were spun-off into a self-contained limited company and then in 2004 the automotive business was sold off as anindependent medium sized company to SMB Schoeller Metternich Beteiligungen, Pullach.

COMMENT:Helsa has grown strongly in recent years as the cabin air filtration market has becomewidely established. It has now joined the mainstream automotive supply world as asubsidiary of Mann + Hummel. This will broaden the opportunities for Helsa, openingthe door to Asian markets and bringing additional sales, marketing, manufacturing andresearch resources.

Helsa’s relationship with its joint venture partner Wix may be strained by the changein ownership, with Mann + Hummel owning 50% of Wix’s competitor Purolator.


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HENGSTHengst GmbH & Co KG

HeadquartersNienkamp 55-85

D-48147 MünsterGermany

Tel: +49-251-20202-0Fax: +49-251-20202-288E-mail: [email protected]

http://www.hengst.deKEY EXECUTIVES:Jens Roettgering, Managing PartnerDieter Baumann, Director, Original EquipmentRolf Sudmann, Director, Aftermarket Sales

Founded by Walter Hengst in 1958, Hengst is a manufacturer of filters and filtersystems for the automobile industry in the industrial and consumer sectors. Itsproduction programme ranges from filter elements for oil, air, fuel and cabin airfiltration to a wide range of multifunctional modules for engines of all types.

In addition to its headquarters in Germany, the company has subsidiaries andmanufacturing locations in Brazil, China and the USA. Hengst currently has more than1700 employees in its eight locations worldwide.

Hengst began production at its new manufacturing site in Joinville, Brazil, late in 2006. The2 ha (20 000 m2) plant significantly increases the company’s presence in the SouthAmerican market, and is located right next door to the automobile industry’s own plants.

In 2007, the company inaugurated additional production capacity at its German site,installing state-of-the-art manufacturing systems for the production of oil and fuelmodules in a 1 ha (10 000 m2) plant in Nordwalde, Germany. The fuel filtrationmanufacturing area was equipped with efficient cleanroom technology to guaranteecompliance with cleanliness requirements for the production of filter systems formodern high-pressure injection systems.

Hengst manufactures oil, fuel, air intake and cabin air filter systems for original equipmentmanufacturers. These are developed in conjunction with the automobile makers andreflect the changes in engine technology, such as use of direct injection and common railtechnology. Hengst also has a comprehensive range of products for the aftermarket. Thesecover all major automotive filter applications and use the latest filter media includingnanofibres, meltblown synthetic media and specially impregnated cellulosic materials.

Hengst’s innovative Energetic® System for cartridge oil filters helps automobile makersachieve the goals mandated by Germany’s legislation – End-of-Life Vehicle Regulations


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(Altfahrzeugverordnung) – such as improved product design, elimination of waste andrapid recycling. The Energetic die-cast aluminium housing remains on the engine blockfor the life of the filter system and during servicing, only the thermal filter insert needsto be replaced. The oil is separated from the filter material by an integrated drain valve.The amount of waste generated is 90% less than with a conventional spin-on filter.Servicing takes less time because the filter insert is so easy to access. The techniciansimply removes the clipped-in filter insert from the housing with the screw-on coverwithout ever coming in contact with the oil. No oil escapes during the filter change.

Other recent innovations include the development of an all-plastic oil filter housing toreduce weight in the Mercedes-BenzA-class petrol engine.

COMMENT:Hengst is one of the largest filter makers that is still privately owned and has grownwithout external investment, aided by quick decision making and a clear focus on itscore business. With low cost local manufacturing in Brazil and China, Hengst is able tocompete effectively with larger companies. It has close relationships with flagshipEuropean automobile makers which will help keep it at the cutting edge of filtrationtechnology, and should prove valuable as performance standards for filtration productsare pushed higher across the globe.


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HJSHJS Fahrzeugtechnik GmbH & Co KG

Abgas-Systeme und KatalysatorenDieselweg 12

D-58706 Menden/SauerlandGermany

Tel: +49-2373-987-0Fax: +49-2373-987-199

E-mail: [email protected]://www.hjs.com

http://www.cityfilter.dehttp://www.des-systems.com

KEY EXECUTIVES:Detlev Baudach, Joint Chief Executive OfficerHermann J. Schulte, Joint Chief Executive OfficerDr-Ing Herman Weltens, Chief Executive, Diesel Exhaust Systems GmbH

HJS Fahrzeugtechnik is a medium-sized family business founded in April 1976. Aspecialist in exhaust gas treatment, the company has focused its activities on thedevelopment of diesel exhaust gas technology. HJS has its corporate headquarters inMenden, Sauerland, Germany, a small town of 60 000 inhabitants. The companyemploys more than 400 people and has a turnover in the region of €90 million.

The company’s product range includes the following product types:

• exhaust gas systems for the worldwide automotive parts market;• diesel exhaust gas technology: diesel particulate filters with a range of different

regeneration options to suit automobiles, buses, heavy goods vehicles,construction machinery and stationary engines;

• motor sport: high-performance catalytic converters for motor sport; • industrial silencers; and• automotive cable assemblies (through the subsidiary company ADC Fahrzeugtechnik).

HJS offers diesel particulate filters based on sintered metal with or without activeregeneration. Through the active regeneration process the soot-loaded filter can beregenerated during any of the engine’s operating states. The filter is equipped with anumber of elements:

• sensor technology for function monitoring and for determining the degree ofsoot loading;

• a fully automated additive dosing system;• heating elements for the filter regeneration; and• a control unit.


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Since it can store 2.5 times more ash than honeycomb filters, any increase in ashformation resulting from the additive is insignificant. Soot is accumulated until anoptimal amount for regeneration has been deposited on the filter material. It is onlythen that soot burning is actively triggered. The ignition of the soot is achieved throughradiant heat from the heating elements. Three heating elements spaced at 10 mmencircle the entire filter and ensure the entire surface area of the filter material isevenly heated. Ignition of the soot layer occurs within a 60 s heating period.

HJS has developed the Original-DPF® City-Filter specifically for retrofitting to diesel-powered automobiles. It features a sintered metal filter system with an oxidationcatalyst upstream of the filter. The exhaust emissions containing the soot particlesflow from the engine into the filter casing. The gaseous components flow through themicroscopic pores of the filter pockets; the soot particles, including the ultra-fineparticles are trapped on the surface and deposited on the individual filter pockets.Regeneration of the filter starts when the exhaust gas temperature reachesapproximately 200°C. Nitrogen dioxide formed with the help of the oxidation catalyticconverter reacts with the soot deposited on the filter pockets, causing the sootparticles to oxidize and degrade; the nitrogen dioxide is then reduced to nitrogenmonoxide. This chemical process is repeated continuously so that the filter is self-regenerating. The filter does not need sensor technology, electronics or additives.

First incorporated in 1976 as HJS H.J. Schulte KG, the company started offmanufacturing silencer mounting kits. It started working with catalytic converters in1985 and turned its attention to diesel in 1992, starting development work on dieselexhaust treatment systems. In 1995 HJS introduced the continuously regenerating trap– CRT® – system for diesel emission control in cooperation with Johnson Matthey andalso initiated work on selective catalytic reduction techniques for reducing nitrogenoxides using ammonium carbamate.

The company expanded in 1997 with the foundation of ADC AutomotiveDevelopment Corp (Pty) Ltd and HJSAutomotive Technology (Pty) Ltd, Port Elizabeth,South Africa. Further expansion took place in 1998, with the acquisition ofSchmidt/Donzdorf Muffler Co. The same year HJS developed its SCRT® system,combining particulate filter with selective catalytic reduction for diesel engines. Thiswas patented with Johnson Matthey in 2001.

In 2000, HJS formed the joint venture company Purem to develop diesel exhaustsystems for commercial vehicles with DaimlerChrysler AG. In 2002, HJS introducedJetfilter®, its sintered metal particulate filter for diesel passenger automobiles. Thistechnology was subsequently licensed to Robert Bosch for sale to original equipmentmanufacturers for passenger vehicles. In 2003 the company was awarded the GermanEnvironmental Prize 2003 for the development of the sintered metal diesel particulatefilter. The same year HJS sold its share in the Purem business to DaimlerChrysler AG.Purem is now owned by Eberspächer.


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Diesel Exhaust Systems GmbH is a wholly owned subsidiary of HJS. It was founded on1 July 2005 and takes responsibility for all the sales activities in the field of dieselexhaust systems for commercial vehicles and off-road applications.

COMMENT:Like Emitec, HJS has based its diesel particulate filter technology on metallic substratesrather than the cheaper and less mechanically robust ceramic models. In terms ofnumbers, ceramics are winning hands down with the original equipment manufacturersfor automobiles, but that still leaves a healthy market for heavy duty vehicles like busesand retrofitting to diesel automobiles. This market is much less suitable for ceramicsubstrates because the filter has to operate independently of any engine managementor additive system. Sintered metal substrates are also potentially more suitable thantheir ceramic counterparts for combination with selective catalytic reduction systemsfor reducing emissions of oxides of nitrogen, and so may win out in the longer term astougher emission limits for oxides of nitrogen come into force.

The management of the business is looking healthy with owner and Chief ExecutiveOfficer Herman Schulte recruiting the former Managing Director of Ricardo in Germany,Detlev Baudach in July 2007 to share the responsibility of running the company.


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HOLLINGSWORTH & VOSEHollingsworth & Vose Co112 Washington StreetEast Walpole, MA 02032 USATel: +1-508-850-2000Fax: +1-508-668-3557E-mail: [email protected]; [email protected]; [email protected]://www.hollingsworth-vose.com

Key executives:Val Hollingsworth, President and Chief Executive Officer

David von Loesecke, Vice President, Filtration

Established in 1843, Hollingsworth & Vose has supplied speciality, industrial andtechnical papers and nonwovens for over 150 years. The company operatesmanufacturing sites and research centres in the Americas, Europe and Asia, and hascompleted construction and start up of a green-field site in China in 2007.

The company is a major supplier of filter media for engine filtration applications suchas automotive air, automotive lubrication, oil, diesel, fuel, hydraulic, and other specialityfiltration applications. The company has a wide range of production capabilitiesincluding wetlaid, drylaid, and meltblown processes. Hollingsworth & Vose combinescellulosic, synthetic media and fibre glass with a variety of resin bonding agents toproduce materials with precisely controlled pore structure and physical properties.

Government and market forces are placing new challenges on filter manufacturers thatrequire innovative materials approaches. The reduction of phenol and formaldehydecontents has become a critical issue. Filter producers want to eliminate the curing thatadds time and expense to the production process—so-called “ovenless”manufacturing. And automotive and industrial customers are demanding longerservice intervals between maintenance. Yesterday’s dream of 100 000 km (60 000miles) air filters and 50 000 km (30 000 miles) oil filters are today’s research anddevelopment objectives.

Hollingsworth & Vose offers a wide range of resin technologies. These include low-energy,water-based acrylic blends, no-cure vinyl acetate resin, and fully cured acrylic resins.

In addition, it offers advanced cure resins. These include:

• resoles—durable and water resistant resins;• novolacs;• resole–novolac blends—with 50–90% curing;• epoxy phenolic—for higher water resistance and good temperature stability; and• 100% epoxy—for emission-free and oven-free processing.


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Composite materials are growing in popularity for engine and industrial filtration.Hollingsworth & Vose offers a variety of composite nonwoven media made exclusivelyfor the following applications:

• long service intervals: meltblown cellulose and meltblown nonwovencomposites offer high dirt holding capacity and moisture resistance;

• common rail: meltblown cellulose composites provide high capacity andmoisture resistance;

• gas turbine: meltblown cellulose composites impart greater capacity and highfractional efficiency; and

• cabin Air: meltblown–spunbond and electrostatic composites have low flowresistance and good efficiency.

Hollingsworth & Vose manufactures filtration media specifically designed for today’scomplicated petrol and diesel fuel blends. Fuel filter grades offer higher flowcharacteristics and efficiencies, better water separation, and improved dirt holdingcapacity. Some are enhanced with microfibre glass and synthetic blends. Hollingsworth& Vose has developed media with 100% polyamide construction. This new filtrationtechnology offers reduced cost, superior water resistance, and high depth loading.

In 2005 Hollingsworth & Vose signed a global licensing agreement with Donaldson Cocovering technology used to produce nanofibre filter media and nanofibre containingfilter elements for pleated air filters for on-road vehicle applications. Under this licenceHollingsworth & Vose will make, use and sell nanofibre filter media under certainpatents and patent applications related to this market application owned byDonaldson. This arrangement will allow Hollingsworth & Vose’s customers to use suchfilter media in connection with the manufacture, marketing and sale of filter productsusing Donaldson’s technology.

COMMENT:Hollingsworth & Vose offers filter makers a broad range of technologies and materials,allowing the company to address most of the performance requirements of theautomotive sector. In particular the company’s capabilities in resins and compositesenable materials properties to be fine-tuned to specific applications and manufacturingprocesses. While still family owned, the business has expanded to operate on a globalbasis with manufacturing in Europe and Asia. The Chinese manufacturing facility isimportant both for supporting growth in the Asian market and for achievingmanufacturing cost savings as the company faces strong inflationary pressure on itsraw material costs.


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IBIDENIbiden Co Ltd2-1 Kanda-choOgakiGifu 503-8604JapanTel: +81-584-813111http://www.ibiden.com

KEY EXECUTIVES:Hiroki Takenaka, President and Chief Executive Officer

Ibiden operates in three main sectors: electronics (substrates and packaging), housingmaterials (melamine laminates, decorative products) and ceramics (ceramic fibres, fineceramics, speciality graphite and silicon carbide diesel particulate filters). In 2007 itrecorded revenues of ¥398.6 billion and employed 11 867 people in operations allround the globe.

Ibiden had gained expertise in the production of high-purity beta-silicon carbide in1979, as a spin-off from its steel alloy technology. It looked to capitalize on thiscapability over the coming years but the big breakthrough came with the developmentof silicon carbide diesel particulate filters in the early 1990s, using the porous qualitiesand thermal capacity of silicon carbide to trap the carbon particulates in dieselexhausts. The world’s first commercial application came in 2000 with Peugeot, andsince then Ibiden has been investing heavily in manufacturing capacity to meet thegrowing worldwide demand.

Volume production of silicon carbide diesel particulate filters started in Japan at Ibiden’sOgaki-Kita plant in 2001 but with the strongest early demand coming from Europe,Ibiden established a dedicated diesel particulate filter manufacturing facility in April ofthe same year in France. This was initially a joint venture with Saint-Gobain owning 35%of the business and Toyota Industries 5%. Saint-Gobain sold its stake in the businessback to Ibiden in 2005 and now manufactures its own range of diesel particulate filtersin competition with Ibiden. Production at Ibiden DPF France started in October 2002and a second production line was opened in April 2004. A third production line has justbeen announced and it will commence production in January 2009.

In June 2004, Ibiden set up a second manufacturing base in Europe, with Ibiden Hungarystarting production in July 2005, operating four production lines. These were increasedto eight in March 2007. By December 2006, Ibiden had shipped five million dieselparticulate filter units.

Other exhaust treatment solutions have also been developed, including catalystcarriers and substrate mats.


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Ibiden Co Ltd began life in 1912 as an electric power company with the aim ofdeveloping power sources from the Ibi River. However, due to poor demand in thosedays for generated electric power, the company started to manufacture carbide andferroalloy with the surplus electricity, taking the first steps towards becoming anindustrial materials company.

This materials capability steadily transformed into application-based expertise as newand valuable uses for the materials developed. The company evolved as theseapplications developed and restructured in three core business areas: ceramics,electronics and housing materials.

COMMENT:Ibiden was involved at the start of the diesel particulate filter market and hascapitalized on that advantage by establishing manufacturing capacity close to thebiggest market for diesel automobiles, in Europe.

Today, it faces competition from other companies with silicon carbide expertise andfrom different diesel particulate filter materials, such as the cordierite used by theDenso/Bosch joint venture. However, the phenomenal success of Ibiden’s dieselparticulate filter to date stands it in good stead to profit from the adoption of Euro 5environmental regulations and the consequent wider adoption of diesel particulatefilters in European vehicles.

Automobile makers and diesel particulate filter makers are watching carefully toanticipate changes in the US attitude to diesel as a fuel for light trucks and passengerautomobiles. If diesel does make a breakthrough in North America, Ibiden will surelyact quickly to establish manufacturing capacity there.

KEY FIGURES: IBIDEN (2005–2007)

(¥ billion) Six months ended 30 September2007 2006

Net sales 211.3 183.4Operating income 40.6 31.5

Net income 28.4 21.5

(¥ billion) Year ended 31 March

2007 2006 2005

Net sales 398.6 319 247.6

Of which Ceramics 96.2 69.8 35.7

Operating income 69 43.6 20.1

Of which Ceramics 24.8 13.2 5.2

Net income 48.3 27.2 12.1


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JAPAN VILENEJapan Vilene Co LtdVilene Building, 14-5, Soto-Kanda 2-chomeChiyoda-kuTokyo 101-8614 JapanTel: +81-3-3258-3333http://www.vilene.co.jp

KEY EXECUTIVES:Yutaka Tanaka, ChairmanMitsuo Kanno, President

Kazuo Hamada, Senior Managing DirectorMinoru Tanaka, Managing Director

Japan Vilene is the leading manufacturer of nonwovens in Japan. The company has along-standing close relationship with Freudenberg, which is a substantial shareholder(22.5%). It divides its business and products into six sectors:

• apparel materials;• industrial materials;• automotive materials;• medical and consumer materials; • electrical materials; and• air filters.

Of interest to this report are the automotive materials sector, which includes engineair intake filters, and the air filters sector, which includes cabin air filters. All the filtersare manufactured by Japan Vilene in Shiga, Japan, or Freudenberg & Vilene Filter(Changchun) Co Ltd in China.

Japan Vilene was established in 1960 as a nonwoven fabrics manufacturer—a joint venturebetween two Japanese companies, Dainippon Ink & Chemicals and Toray Industries, and aGerman company Freudenberg. The company completed its first factory at Shiga thefollowing year. By 1970 it was listed on the Second Section (for mid-sized companies) of theTokyo Stock Exchange and growth continued with the Tokyo factory being opened in 1972.

In 1980 a joint venture – Freudenberg & Vilene International Ltd – was set up in HongKong. Three years later the company established Viam Manufacturing Inc in the USA.

In 1984 the company was promoted to the First Section of the Tokyo Stock Exchange(for large companies) ahead of a period of rapid growth. In the next five years thecompany established Pacific Giken Co Ltd, Cumulass Co Ltd, and Freudenberg & VileneNonwovens (Taiwan) Co Ltd.


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The company set up a Research & Development Center in 1990 and proceeded to addfurther ventures including Freudenberg & Vilene Nonwovens (Suzhou) Co Ltd in Chinain 1995, Tokyo Kako Giken Co Ltd in 1996, and Freudenberg Vitech Ltd, OyamaChemical Co Ltd, Korea Vilene Co Ltd and Viam (TN) Ltd, all in 1997.

2001 saw the start of operations at FreudenbergVitech Ltd Partnership (KY) and theestablishment of Korea Filtertek Co Ltd. Representative offices were opened inShanghai (2002) and Malaysia (2003).

Activities in China stepped up in 2004 with the establishment of Freudenberg & VileneFilter (Changchun) Co Ltd and Tianjin Viam Automotive Products Co Ltd. The followingyear saw the establishment of Freudenberg & Vilene Interlinings (Nantong) Co Ltd.

COMMENT:Japan Vilene’s fortunes are closely linked with those of shareholder and partnerFreudenberg. It has a good engine intake filter business and has expanded its cabin airfilter business by adding anti-allergenic deodorizing filters which are selling well. Thecompany is developing cabin air filters with deodorizing properties and removalcapabilities for yellow dust* for China and other Asian markets, and is well placed toserve these markets with manufacturing capabilities in China and Japan.

KEY FIGURES: JAPANVILENE (2003–2007)

(¥ million) Year ended 31 March

2007 2006 2005 2004 2003

Net sales 56314 51865 49364 48833 48208

Of which automotive materials 23898 19072 16076 15699 15586

Of which air filters 8759 8581 8829 8663 8629

Operating income 3765 3111 2759 2019 2022

Net income 2906 2495 2379 2037 1041

*Essentially dust storms—a seasonal meteorological phenomenon which affects much of East Asia sporadically atcertain times of the year. The dust originates in the deserts of Mongolia, northern China and Kazakhstan, where fastsurface winds and intense dust storms kick up dense clouds of fine, dry soil particles.


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JOHNS MANVILLEJM HeadquartersPO Box 5108Denver, CO 80217-5108USATel: +1-303-978-2000http://www.jm.com

KEY EXECUTIVES:David Sokol, Chairman

Todd Raba, President and Chief Executive OfficerDion Persson, Senior Vice President, Engineered Products Group

J.P. Blanchard, Global Filtration Business Manager

Johns Manville, a Berkshire Hathaway company, is a leading manufacturer and marketer ofpremium-quality building and engineering products. In business since 1858, the Denver-based company has annual sales in excess of US$2 billion and holds leadership positions inall of the key markets that it serves. Johns Manville employs approximately 7800 peopleand operates 41 manufacturing facilities in North America, Europe and China.

The company’s building products are divided between insulation products and roofingsystems. The engineered products group produces:

• filtration media;• glass textile wallcoverings;• nonwoven mats;• fibre glass reinforcements; and• cryogenic insulation;

at 14 manufacturing locations worldwide: Spartanburg, South Carolina, Waterville,Ohio, Richland, Mississippi, and Etowah, Tennessee, all USA; Berlin, Bobingen, Karlstein,Steinach, and Wertheim, all Germany; Oskarström and Helsingborg, Sweden; Trnava,Slovakia; and Shanghai and Luoyang, China.

Johns Manville Filtration has been providing filtration solutions since the 1940s andoffers one of the widest arrays of filtration media in the world. The company has threetechnology centres devoted to research and development globally: the main technicalcentre is the Johns Manville’s Technological Center (JMTC) in Denver and there aretwo additional research and development facilities at Waterville, Ohio, USA; andBobingen, Germany.

Johns Manville produces filtration media for liquid and air filtration. Of particularinterest to the automotive filter maker is its range of polyester spunbond media whichare used in cabin air filtration.


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The company launched two air filtration products at the Techtextil exhibition inFrankfurt, Germany, in June 2007. CombiFil® Premium is an innovative multilayercomposite that combines the advantages of both polyester spunbond and microfibreglass and provides a filtration product that has consistent mechanical filtration efficiencyup to the standards of high efficiency particulate air (HEPA) filters, low-pressure dropwith high dust-holding capacity and requires no additional reinforcements. As a result, itis easy to process and provides an extremely long filter life with low energy use. Itallows filter producers to manufacture pleated filters using new dimensions of highdust-holding capacity combined with high stiffness and low pressure drop.

SpunFil™ EasyPleat is a calendered polyester spunbond made with John’s Manville’snew BC-technology. It has high air permeability and features a high stiffness even atlow-area weights of 60–120 g.m–2. The product enables high pleating machine speedswhile continuing to achieve sharp and precise pleats.

In November 2007, Johns Manville Filtration introduced an air filtration media withSelf-Supporting Pleat™ technology called Assurance™ with SSP™ for residentialheating, ventilation and air-conditioning, commercial and industrial applications.Assurance is a nonwoven composite media made of natural and synthetic fibres, and isused to produce a superior mechanical air filter. The media also enables production ofself-supporting air filters that reduce costs, increase manufacturing productivity andavoid safety liabilities associated with expanded-metal filter structures.

Johns Manville’s rollercoaster history dates back to 1858 and the inception of the H.W.Johns Manufacturing Co, New York, New York, a roofing products manufacturer. In1886, the Manville Covering Co, an insulation materials manufacturer, was founded inMilwaukee, Wisconsin, USA. The two companies merged in 1901 to form the H.W.Johns Manville Co, New York, New York. In 1926, the company was reincorporated asJohns Manville Corp ahead of going public the following year. By 1930 Johns ManvilleCorp was listed on the Dow Jones Industrials.

Johns Manville entered fibre glass production in 1958 with the acquisition of LOF GlassFibers, Ohio, a fibre glass insulation company. With the acquisition of Schuller GmbH inGermany in 1971, Johns Manville became the world’s leading developer of fibre glassmat. The world headquarters was moved from New York, New York, to Denver,Colorado, in 1972. In 1981 Manville Corp was formed in a corporate reorganization butthe next year it filed for Chapter 11*. A first Chapter 11 reorganization plan was filed in1983 to provide a fair, systematic way of handling asbestos health claims. A secondproposed Plan of Reorganization was filed in the federal bankruptcy court in 1986.

In 1988 Manville Corp emerged from Chapter 11 and new Manville Corp securitieswere traded on the New York Stock Exchange. Manville Personal Injury and PropertyDamage Settlement Trusts were established to pay asbestos claims. In 1991 a holding

*Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcylaws of the USA.


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company structure was established and the business was streamlined to focus on twokey areas: building materials and forest products.

In 1997 the company’s name was changed back to Johns Manville Corp. In 1999 JohnsManville acquired the Spunbond division of Hoechst to expand its synthetic productofferings in Engineered Products. In 2001 Berkshire Hathaway acquired JM through thepurchase of all outstanding shares of Johns Manville common stock.

COMMENT:Johns Manville has had a troubled medium-term history resulting from its heavyinvolvement in the asbestos industry. Its liabilities for personal injury and propertydamages dragged the business into the bankruptcy courts. It is now in the more benignownership of Berkshire Hathaway, the remarkably successful investment company runby Warren Buffet. With this stable investment environment and a simplified productportfolio, the company is quietly rebuilding its reputation as a global player in a numberof niche markets. It has a good asset base with excellent research and developmentfacilities and a well-equipped manufacturing base that is truly global. As the companyputs the difficult days of the late 20th Century behind it, we can anticipate seeing JohnsManville re-emerge as a more confident player on the global stage.


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K&N FILTERSK&N Engineering Inc

1455 Citrus StreetRiverside, CA 92502

USATel: +1-951-826-4000

http://www.knfilters.comKEY EXECUTIVES:Jerry Mall, Owner and ChairmanJeff Mall, Chief Operations ManagerMelody Van Aken, Chief Administrative OfficerSteven J. Rogers, President and Chief Executive OfficerDavid Shushereba, Director of Research and DevelopmentSteve Williams, Vice President, Product Development and Engineering

K&N Engineering, of Riverside, California, USA, is the inventor and leading innovatorof reusable cotton gauze filter technology for automotive applications. It operatesinternationally with offices in the UK and The Netherlands, yet continues to exist as afamily-owned business with an enthusiast mindset and a direct connection with motorsports that carries over throughout all levels of management and manufacturing. Thecompany has around 850 employees and sales in excess of US$100 million.

In 1964 Ken Johnson and Norm McDonald started a business for motorcycleenthusiasts. They rented and sold motorcycles and accessories to die-hardperformance lovers. Soon the founders began answering various needs with highquality parts. One of those needs was for an air filter that could keep the fine dirtexperienced in off-road racing from damaging the engines. This filter had to bewashable and reusable and allow enough air to keep the motorcycles running atpeak performance. The original K&N High Flow air filter was born and in 1969K&N Engineering became known more for its performance air filters than forrental bikes and parts. It wasn’t long before the filter technology was applied toautomotive applications.

Thirty-five years later, Ken and Norm have moved on but K&N’s commitment toproviding top quality products that deliver as promised is stronger than ever.K&N boasts in excess of 55 000 applications, covering a vast majority of thevehicles on the road today. More than 600 employees research, develop andmanufacture K&N products.

Today, K&N maintains a stocking catalogue of over 3500 part numbers, including anextensive line of factory replacement drop-in filters, fuel-injection performance kit(FIPK) applications, and Performance Gold oil filters. These are sold to theindependent aftermarket through a variety of retail outlets, many of which areregistered K&N dealers.


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K&N’s product offering is based on high-flow air filters that employ cotton gauze,treated with oil, as the filter media. This is at odds with the conventionalpaper/cellulose air filter. The cotton filter has a longer operating life than the paperfilter, and can be cleaned, retreated and reused when it needs servicing. Typicalrecommended service intervals are 80 000 km (50 000 miles), compared with24 000 km (15 000 miles) for conventional filters. Paper filters are simply thrown awayat service. K&N also claims performance improvements for engines using its filters,leading in turn to lower fuel consumption and reduced carbon dioxide emissions.

K&N’s Performance Gold oil filters use a cellulose media bound by phenolic resinsurrounding a metal inner core that provides structural strength to reduce the risk offilter collapse. The resin holds the media fibres together and at the same time keepspores open by keeping the fibres apart. The resin is cured to full strength during theelement manufacturing process. Phenolic resin is chosen because of the hightemperature demands of oil filters. The filter includes an anti-drainback valve, whenapplicable, that prevents oil from draining back into the crankcase during engineshutdown. The anti-drainback valve is useful in situations where the filter is mountedhorizontally which could allow backflow.

COMMENT:Just as automotive manufacturers have begun responding to consumer demand forpremium brand tyres, spark plugs, motor oil, and other consumables, there are alsochanges in expectations for filters. There is trend away from disposable paper filters innew automobiles and trucks that K&N hopes to exploit as a supplier to originalequipment manufacturers.

The company’s marketing has been strongly focused on motor sports, both in NorthAmerica and Europe, to promote the performance advantages of the company’s products.Today it is becoming clear that the environmental benefits of reusable filters are likely tobe more important for mass market success than improved performance. This suggeststhat successful marketing over the next decade will require a change in culture for K&N,and perhaps a move away from the world of performance motor sports.


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KIMBERLY-CLARK

KEY EXECUTIVES:Thomas J. Falk, Chairman of the Board and Chief Executive OfficerJan Spencer, President of Kimberly-Clark Professional, North Atlantic

Kimberly-Clark is a leading global health and hygiene company employing more than55 000 people worldwide and posting sales of US$16.7 billion in 2006. Headquarteredin Dallas, Texas, with operations in 37 countries, Kimberly-Clark’s global brands,including family care and personal care brands such as Kleenex, Scott, Andrex, Huggies,Pull-Ups, Kotex, Poise and Depend, are sold in more than 150 countries. Founded in1872, Kimberly-Clark Corp merged with Scott Paper in 1995 in a transaction valuedat US$9.4 billion.

The company reports its business in four sectors: personal care, consumer tissue,health care, and professional and other. Its filtration media business lies within theother part of professional and other.

The company manufactures a wide variety of filtration media with patented andproprietary technologies for heating, ventilation and air-conditioning applications, forliquid bag, metalworking and other liquid applications, and laminates for airapplications. The company’s main products for the automotive filtration market are itsIntrepid synthetic air filtration media made of hydrophobic polyolefin fibres thermallybonded together.

Kimberly-Clark spun off its North American paper and pulp business to form NeenahPaper Inc in November 2004.

COMMENT:Kimberly-Clark’s filtration media is a non-core activity for the corporation. Thecompany capitalizes opportunistically on its expertise in nonwovens production anddevelopment, the primary objective of which is to develop products for theconsumer and healthcare business. It presents its capabilities in two ways – asfiltration media suppliers and as a provider of so-called “Partnership Products” forfilter manufacturers. Nevertheless, it remains a major player in nonwoven filtrationmedia because of the sheer size of its operations. Precise sales figures are not

Kimberly-Clark Filtration Products1400 Holcomb Bridge Road

Roswell, GA 30076USA

Tel: +1-770-587-8958 Fax: +1-770-587-7715

http://www.kcfiltration.com

Kimberly-Clark CorpPO Box 619100

Dallas, TX 75261-9100USA

Tel: +1-972-281-1481Fax: +1-972-281-1490

http://www.kimberly-clark.com


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reported but the filtration sales are included in the other section of the professionaland other business segment. The other section was responsible for sales ofapproximately US$200 million in 2006.

KEY FIGURES: KIMBERLY-CLARK (2004–2007)

(US$ million) Three months ended 30 June Six months ended 30 June

2007 2006 2007 2006

Net sales 4502 4161.4 8887.3 8229.3

Of which Professional & Other 763 704 1460.4 1356.8

Cost of sales 3056 2873.8 6089 5788.6


Of which Professional & Other 119.9 113.9 228.6 218.4

Net income 461.8 377.6 913.8 652.7


2006 2005 2004

Net sales 16746.9 15902.6 15083.2

Of which Professional & Other 2718.7 2595.7 2757.7

Operating profit 2101.5 2310.6 2506.4

Of which Professional & Other 437.1 446.9 387.1

Net income 1499.5 1568.3 1800.2


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LYDALLLydall Inc

Corporate Headquarters One Colonial Road

Manchester, CT 06045-0151USA

Tel: +1-860-646-1233Fax: +1-860-646-4917

E-mail: [email protected]://www.lydall.com

http://www.lydallfiltration.comKEY EXECUTIVES:David Freeman, President and Chief Executive OfficerKevin T. Longe, President, Lydall Filtration/Separation Inc

Lydall Inc with operations in the USA, France, and Germany, and sales offices in Europeand Asia, is a manufacturer of speciality engineered products for the thermal/acousticaland filtration/separation markets. Its filtration division, Lydall Filtration/Separation Incdesigns and manufactures technically advanced air and liquid filtration products rangingfrom microfibre glass media to a variety of synthetic and membrane composites.

Lydall Filtration/Separation Inc has its own advanced research and development, andpilot manufacturing facilities. Lydall’s products are found in applications such as enginefiltration, high efficiency air and liquid filtration, gasket materials, and speciality andindustrial nonwovens. The company’s expertise and process capabilities includewetlaid, meltblown, and composite technologies.

For the automotive filtration sector, Lydall offers superior performing media grades for themost demanding automotive filtration applications which cellulose media cannot meet.

Lydall has developed microfibre glass, synthetic and carbon technologies, coupled withmultilayer and laminating capabilities, which allow the company to create customcomposites with multiple functions. The company establishes partnerships with itscustomers to develop these media into solutions for diesel fuel, engine intake,emissions and cabin air filtration.

The company is in the second year of a multi-year capital improvement plan at both itsRochester, New Hampshire, USA, and Saint-Rivalain, France, Filtration/Separationfacilities. At its Rochester, New Hampshire operation Lydall recently installed anadvanced laminating line, expanding its technical capabilities and providing sufficientcapacity to cover current composites demand and future growth for several years. Thelaminating line is a key process in the manufacture of the LydAir SC, LyPore SC and agrowing portfolio of customized composite product lines, which are used inapplications that include cabin air filters.


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Recent product developments at Lydall include the introduction of a new type ofmedia in November 2006. LydAir® ElementsMG is comprised of a new category ofbiosoluble glass microfibres designed to meet the European Union’s rigorousbiosolubility criteria. The new product line incorporates material development fromJohns Manville and process innovations at Lydall. The new media can be fabricated intofilters using traditional pleating methods, and is commercially available over the entirerange of efficiency specifications. It will be manufactured at sites in both North Americaand Europe for all geographic markets.

ElementsMG innovation is also available in LyPore® MG liquid filtration products forengine and industrial, and life sciences market applications.

In June 2007, Lydall introduced LyPore® Unity™ liquid/liquid and liquid/gas coalescingmedia grades that will have application in diesel fuel filtration. These are optimized forefficient separation of water from other liquids, and oil and water from air streams.They are constructed from borosilicate microfibre glass that offers the highest level ofcoalescence at the lowest pressure drop. LyPore® Unity™ grades can be pleated orwrapped and are available in a wide range of efficiencies, repellency levels, and binders.

Lydall’s predecessor company, Colonial Board Co, dates back to 1913 but the moderncompany took shape in 1969, when Colonial Board merged with another entity andLydall Inc was formed. In 1989, after a number of additional US operations had beenacquired and a merger with Logistics Industries, Lydall took a full listing on the NewYork Stock Exchange.

In 1991 an operation was established in Saint-Rivalain, France. In 1998 the companyacquired its St Johnsbury, Vermont, operation and Lydall Gerhardi in Germany. In 2001the Ossipee, New Hampshire, operation was acquired and in 2004 a second Frenchoperation was opened in Saint-Nazaire.

COMMENT:Lydall occupies niche positions in the high performance filter media market. It hasmanufacturing capability in the USA and Europe and has made initial steps into theChinese market, leasing warehousing space for its filters in China, with the short-termobjective of establishing a sales and service company with the ability to performfinishing operations. A full manufacturing operation in the region must be considered,especially if Lydall is to address the increasing material costs that have been hitting theoperating margins of its filter business.

The technical capabilities of this company are strong and although the major share of theautomotive filter market will remain with cellulose media in the near future, Lydall’sposition fits well the trend for original equipment manufacturers to specify longer serviceintervals for filtration equipment. The carbon air filtration market is strong and will growfurther as inclusion of cabin air filters in new automobiles tends towards 100%. If the


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anticipated boom in diesel fuel adoption in the US light vehicle market materializes,Lydall’s coalescing media should prove a useful asset for fuel filtration applications.

KEY FIGURES: LYDALL INC (2004–2007)

(US$ million) Three months ended 30 September Nine months ended 30 September

2007 2006 2007 2006

Net sales 81.6 80.1 253 245.8

Cost of sales 64.3 62.5 197.5 191.3

Gross margin 17.3 17.6 55.5 54.4

Operating income 3.9 4.1 11.7 11.9

Net income 1.7 3.7 6.5 8.1


2006 2005 2004

Net sales 326.4 306.4 293.6

Of which Filtration/Separation 74.9 68.2 82.1

Of which Filtration 60.6 58 66.5

Gross margin 72.8 63.9 57.5


Of which Filtration/Separation 4.6 4.9 11

Net income (loss) 10.2 5.4 (0.5)


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MAHLEMahle GmbHPragstrasse 26–46D-70376 StuttgartGermanyTel: +49-711-501-0Fax: +49-711-501-12007http://www.mahle.com

KEY EXECUTIVES:Professor Dr-Ing Heinz K. Junker, Chairman and Chief Executive Officer

Dipl-Kfm Peter Grunow, Vice President and General Manager, Air and Liquid Management Systems

The Mahle Group is a globally leading manufacturer of components and systems forthe combustion engine and engine peripherals—from piston systems, cylindercomponents, and valve train systems via air management systems up to liquidmanagement systems. Within air and liquid management it produces engine and cabinair filters, oil filters and fuel filters for original equipment manufacturers. It alsooperates an Aftermarket division supplying a full range of filters. With currentlyapproximately 47 000 employees in more than 110 production locations and in sevenresearch and development centres around the world, Mahle achieved sales ofapproximately €4.3 billion in 2006 placing it among the 30 largest suppliers to theautomotive industry worldwide. According to Mahle, every second automobilecontains its components.

The Mahle story began in 1920 when pistons made of heavy gray cast iron were beingused in internal combustion engines for automobiles. The Mahle brothers, in contrast,were producing light-alloy pistons at their small, newly established company. Theirperseverance paid off as the light alloy pistons began to take over the market. To keepdirt and dust out of the engine, they eventually developed fuel, air and oil filters, andthese went into production in 1929.

In 1937 Mahle started series production of oil bath air filters and in 1952 it startedproducing service-friendly spin-on filters. In 1955 the company pioneered the use ofpaper for engine filters in Europe.

In 1964 the company founders Hermann and Ernst Mahle transferred ownership ofthe Group to the non-profit Mahle Foundation, which has held and administeredalmost all company shares since then in a fiduciary capacity. The Mahle Foundationserves charitable causes by supporting healthcare, youth welfare, schooling, generaladult and vocational education, and organic farming.

In 1972 Mahle acquired shares in Knecht Filterwerke GmbH, Germany, and in KnechtFilterwerk Ges.mbH, Austria. Further acquisitions followed in 1986 with the


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acquisition of Técafiltres SA and Soparis SA (now Mahle Filtersysteme SA), France. In1993 Mahle consolidated its stake in Knecht Filterwerke GmbH by buying theremaining equity. The same year an oil filter module with filter inserts and plastic coverwas introduced. Mahle pioneered the cabin air filtration market in 1994 by introducingthe Micro-Star® passenger compartment air filters. 1997 saw the start of a number ofjoint ventures being established: Kirloskar Knecht Filters Pvt Ltd – now Mahle FilterSystems (India) Pvt Ltd – and Knecht Duroplast Sistemas de Filtración SA de CV (nowMahle de Mexico Sistemas de Filtración SA de CV) were established that year andDonghyun Mahle Filter Systems Co Ltd, South Korea, followed in 1999. Another majoracquisition, followed in 2001 with the addition of the Tennex Group (now MahleTennex Corp) with filter plants in Japan, The Philippines, the USA and the UK. Tennexwas previously a subsidiary of the Nissan Group and the acquisition took Mahle’s filtersales over the €1 billion mark. The following year Mahle launched the first plastic oilfilter for passenger automobile diesel engines and merged its three filter systemscompanies in the USA and Mexico.

In 2005 a joint venture was established to produce air filters for the Turkish market.

During 2006 the company brought two Chinese operations on stream: a newly openedproduction plant started producing oil filters in Shanghai and a location in Guangzhou,developed to supply the Japanese market with air filters, commenced production. Anew filters plant in Romania also started production in 2006.

In January 2006 Mahle announced that it was buying the activated carbon canisterbusiness of Behr GmbH. Behr had obtained this business when it bought Dayton Plantfrom DaimlerChrysler. Dayton Plant’s main business is in thermal managementwhereas the carbon canister business, which supplies original equipmentmanufacturers with technology to trap hydrocarbon emissions from fuel tanks,complements Mahle’s filter systems business. The business was integrated withinMahleAmerica’s Murfreesboro, Tennessee, facility.

In 2007 Mahle acquired the intake module and air filtration business division fromSiemensVDO, a division of Siemens AG. The acquisition includes all worldwide unitsof the SiemensVDO division with locations in Canada, Mexico, the UK and China. In2006 the turnover of the division was approximately €300 million, generated byapproximately 1000 employees. The main products are air intake modules and air filtersystems for passenger automobile petrol and diesel engines.

In September 2007 Mahle introduced an automatic water disposal system to workwith its diesel fuel filters. Modern injection systems, such as the common railtechnology, are sensitive to water suspended in the diesel fuel. Particularly in countrieswith a high water content in the fuel, such as in the USA, Brazil, China, and other partsof Asia, this poses great risk. The new automatic water disposal system is equippedwith an innovative hydrocarbon absorber. This cleaning unit guarantees that theseparated water is of drinking water quality.


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COMMENT:Mahle is working hard to maintain its position in the first division of automotivecomponent suppliers. The acquisition of Tennex, the former Nissan subsidiary, hasestablished its operations on a truly global scale and it is well placed to capitalize ongrowth in the market for original equipment manufacturers for automobiles, whereverthat growth should come. Siemens’ air filter and intake business is a strategicacquisition that brings additional volume to the air management product line. Thisacquisition also has strong operational presence in Asia and America and socomplements Mahle’s European strengths.

Mahle relies on sales to original equipment manufacturers to a greater extent thanmany of its competitors and this has led to the development of filter systems ormodules that are functionally integrated into the engine. This demands higher researchand development investment but ensures a close partnership with the automobilemakers and a high reputation for technical competence. This should position thecompany well for the future if the market continues to move progressively to moresophisticated technical solutions and away from treating filters as commodity items.

The company is also investing strongly in its other operating areas and the acquisitionsin the first half of 2007, along with organic growth of around 8%, contributed to sales of€2488 million, up by €304 million on the previous year’s first half result. Theacquisitions also contributed to a huge increase in staff numbers (up by 7949 to 46461)from June 2006 to June 2007. As the acquisitions bed in, the group should be able tomake significant synergistic improvements in operational performance.

KEY FIGURES: MAHLE GROUP (2002–2006)


2006 2005 2004 2003 2002

Net sales 4314 4122 3758 3246 3070

Of which air management systems 690.3

Of which liquid management systems 509.6

Of which aftermarket 451

Research and development expenses 241.6 218.5

EBITDA 598 642 502 447 426

Net income 192 159 131 95 81

Employees (at 31 December) 38603 37419 35744 30646 29122


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MANN + HUMMELMann + Hummel GmbH

Hindenburgstraße 45 D-71638 Ludwigsburg

Tel: +49-7141-98-0 Fax: +49-7141-98-2545

E-mail: [email protected] http://www.mann-hummel.com

KEY EXECUTIVES:Dr Dieter Seipler, Chief Executive Officer and Managing Director, IndustrialEquipment and Components Division Frank B. Jehle, Chief Financial Officer Manfred Wolf, Managing Director, Filter Elements and Systems for Industryand Aftermarket Division Dr Wilfried Lehr, Managing Director, Automotive Original EquipmentManufacturer Division

Mann + Hummel was founded in 1941 as an automotive components supplier, andsince then has made a significant contribution towards developments in automotivefilter technology. The company develops, produces and sells technically complicatedautomotive components such as air filter systems, intake manifold systems, liquid filtersystems and cabin filters for the automotive industry, and filter elements for vehicleservice and repair.

For the general engineering, process engineering and industrial manufacturing sectors,the company’s product range includes industrial filters, filter systems, and materialhandling systems and equipment. In 2006 the corporation achieved total revenues of€1.6 billion, about three-quarters of which came from business with the automotiveand motor spares trade. The group currently employs 10 500 people at 41 locationsaround the world and is organized in three divisions, based on its markets.

Automotive original equipment division supplies original equipment manufacturers withair filter systems, intake manifold systems, liquid filter systems, including oil and fuel filtersystems, and other important modules and components in and around the engine.

Filter elements and systems for industry and aftermarket division supplies industrialcustomers, original equipment suppliers and the independent aftermarket with filterelements for air and liquids; cabin filters; air-drying boxes; cooling-water filters; spin-onoil filters and fuel filters; elements for oil mist separators; filter elements and modulesfor industrial, construction and agricultural machinery; air–oil separator elements;filtration systems for machine tools, and chip handling equipment and chip transportsystems. The company sells its products using the Mann-Filter brand in theindependent aftermarket sector. It estimates that it covers 95% of global filter marketwith its replacement filter range.


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Industrial equipment and components division supplies equipment and systems formaterial handling and processing in the plastics, rubber, recycling and chemical industries.

Recent product introductions include innovative compact air filter elements withoptimized geometry to support the package requirements of the enginecompartment. The use of nanofibres has significantly improved fine dust separation,which is becoming an increasingly important requirement in the engine air intake.

Expertise in the manufacture of plastic moulded elements has opened upopportunities for cabin filters. With innovative production equipment for combinedfilter media, quality has been substantially improved at the same time as reducingproduction costs. In 2006 Mann + Hummel won an important order to supply cabinfilters for the new Peugeot 207. It will fit cabin filters to around 660 000 of thesevehicles each year. Depending on the optional equipment in the vehicle, particle oractivated carbon filters are installed. The particle filters protect passengers againstpollen, soot and dust, and filtration efficiency is nearly 100%. With combi-filterscontaining activated carbon, even harmful gases such as ozone or nitrogen oxides andunpleasant odours are eliminated. This was Mann + Hummel’s first cabin filter orderfor PSA Peugeot-Citroën.

Multilayer, fully synthetic filter media have been developed by Mann + Hummel whichare designed to improve filtration efficiency. Despite the higher cost of these media,such filters are increasingly in demand, for instance, for gearbox oil filters.

In 2006 several innovative product concepts were developed for the fluid managementof liquid filter systems. In an oil filter module with integrated oil–water heat exchangerdeveloped for a six-cylinder petrol engine, an additional cooler and various interfacesare no longer required due to the use of an intelligent oil control system. Innovativeheating concepts are now built into all new fuel filter modules. Through functionalintegration they provide the longest possible service life and fully use the availableinstallation space.

The company is also directing its development efforts at work on developing fuel filterswhich will meet the Euro 5 and Euro 6 specifications that will shortly be adopted inEurope and many other countries elsewhere in the world.

In 2006, the group added diesel particulate filter retrofit capability through acooperation agreement with DES Diesel Exhaust System GmbH, a subsidiary of HJSFahrzeugtechnik GmbH & Co KG in Menden, Germany. Through this, Mann + Hummelis able to supply diesel particulate filter systems for off-road vehicles. This is part of aninitiative to target the retrofit market.

Filterwerk Mann + Hummel GmbH was founded in 1941 in Ludwigsburg nearStuttgart, Germany, by Adolf Mann and Dr Erich Hummel. By the following year theyhad developed an air cleaner cyclone, textile and felt filters, strainer disc filters and a


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main-flow oil centrifuge. In 1946 the Filap production company for industrial filters wasfounded in Speyer. In 1951 the company started producing filters with paper fine-meshfilter elements for air and oil filtration, and in 1958 it added the capability to producespin-on filters for oil (main and auxiliary flow).

Overseas expansion followed, starting with cooperation with filter manufacturers inArgentina and Brazil in 1959 (now Mann + Hummel Argentina SA, Buenos Aires, andMann + Hummel Brasil Ltda, Indaiatuba). Filtros Mann SA was founded in Zaragoza,Spain, in 1965. The company developed its first plastic oil filter housing in 1984. In1991, Mann + Hummel bought Plasta Sonneberg GmbH, Thuringia (now FilterwerkMann + Hummel GmbH, Sonneberg). In 1993 a joint venture Mann Filtr Jipap Sro wasfounded in the Czech Republic; Filtros Mann SA was founded in Mexico (now Mann +Hummel Mexico SA de CV); and Somos GmbH, Weiterstadt was acquired. In 1994Mann + Hummel Filter Technology Inc was founded in Greensboro, North Carolina,USA. The company started looking east in 1996, founding Mann + Hummel (SEA) Pte,Singapore and opening a sales office in Shanghai, China. The same year the companyopened branches in Wolverhampton, UK, and Southfield, Michigan, USA.

Further US expansion followed in 1998 with the purchase of Advanced FiltrationConcepts Inc, Louisville, Kentucky, and Geiger Technic Inc Kalamazoo, Michigan.

Mann + Hummel founded Japanese and French subsidiaries in 1999.

2000 saw the foundation of a joint venture with GUD (the parent company of Ryco) inAtlantis, South Africa, and an Australian company was launched the following year.

Three more joint ventures followed in 2002: Shanghai Mann + Hummel Filter Co Ltd inShanghai, China; Mann + Hummel Fawer Filter Co Ltd in Changchun, China; andDongWoo Mann + Hummel Co Ltd in South Korea.

A further joint venture followed in 2004 with the establishment of Mann + HummelWako Co Ltd, situated in Shin-Yokohama. In 2005 subsidiaries were established in Indiaand Hungary, along with regional offices in Moscow, Russia, and Istanbul, Turkey.

In 2006 Mann + Hummel and the Bosch Group established a joint venture companyMHB Filter India Pte Ltd in Tumkur, India, and acquired Unico Filter DD, Bosnia andHerzegovina. The Bosch Group and Mann + Hummel cooperated again to buy thePurolator filter business from ArvinMeritor on 1 April 2006. In Europe, existingfacilities in Belgium (Advanced Development, in Brussels) and France (Production, inGrenay and Laval; and the aftermarket warehouse in Argenteuil) were concentratedin a new plant in Louverne, near Laval, France. The new facility is designed to apply leanproduction concepts should improve the company’s competitiveness in France.

In 2007 Mann + Hummel expanded its activities in Eastern Europe investing inincreased production capacity in the Czech Republic and founding a 100% subsidiary


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in Moscow. In addition, the company has established a production facility in Saratowwhich will be managed by the Russian company.

In November 2007, Mann + Hummel announced plans to take-over the cabin filtermanufacturer Helsa-Automotive based in Gefrees, Germany, from the Munich-basedinvestment company Schoeller Metternich Beteiligungen (SMB) as a wholly ownedsubsidiary by the end of 2007. Helsa-Automotive achieved sales of around €50 millionin 2006 and has plants in Germany and the Czech Republic, with a total of 350employees. Christian Uhlik, current President and Chief Executive Officer will continuein his leadership role. The acquisition received approval by the relevant competitionauthorities in December 2007. Helsa’s product range includes different cabin air filters,passive sorption systems (helsasorb®) and residual emission filters (technopor®).

COMMENT:Mann + Hummel invests around 6% of total turnover in research and development andhas around 500 staff employed in research and development. It is the developmentpartner of choice for a great many automotive original equipment manufacturers andthis keeps the company at the forefront of automotive technology. It has successfullydeveloped from its German roots to become a global player, installing its first oilmodule for a Japanese automobile maker in 2006. By acquisition, joint ventures andlaunching stand-alone operations, it has established major presences in the futuregrowth areas of India, China, and Eastern Europe, and with the shared buyout ofPurolator it has a substantial share in the US aftermarket. The purchase of Purolator isinteresting—particularly if Mann + Hummel can exploit Purolator’s US aftermarketaccess, logistics and branding to sell Mann-Filter branded products on a significantlyincreased scale. It certainly makes the company an even more credible global player.

The company’s technical capabilities are wide ranging, with 3100 filters in the catalogueto match 33 000 vehicle/engine combinations, representing 95% of the vehicles in usein Western Europe. The product range has recently been expanded to include dieselparticulate filters for retrofitting on off-road vehicles, albeit using technology bought infrom a third party. The company’s expertise in plastic moulding is also relevant in themove towards the next generation of filter units, where filters are designed inconjunction with engine modules.

According to Mann + Hummel, more than 40 million cabin filters were produced asoriginal equipment in 2006, and around half of these were for Europe. USA, SouthAmerica and Asia are all growth markets. In the aftermarket, demand for cabin filterelements was well over 100 million units. Demand is increasing worldwide, both in theindependent aftermarket and the original equipment spares sector. The acquisition ofHelsa-Automotive significantly strengthens Mann + Hummel’s position in this market,both with additional manufacturing and technical capability and with a strong brand.One issue that will need to be resolved quickly is Helsa’s current US joint venture withWix, a major competitor for Mann + Hummel’s Purolator business. Helsa owns 40% ofthis venture with Wix owning the balance.


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Mann + Hummel is deservedly a world leader in automotive filtration and with its clearfocus on filtration applications it is likely to strengthen that position in the comingthree to five years.

KEY FIGURES: MANN + HUMMEL GROUP (2004–2006)


2006 2005 2004

Sales 1595.7 1377.3 1249

Of which for automotive original equipment manufacturers 751.2 698.1

Of which for industry and aftermarket* 801

EBIT 73.5 59.3 54.7

Net income 43.6 23 30.5

Employees (at 31 December) 10739 9497 9110

*Includes sales (roughly half the stated figure) to non-automotive industries.


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NEENAH GESSNER

KEY EXECUTIVES:Dr Walter Haegler, Managing Director, Neenah Gessner

Günther Aumann, Director Technical Marketing, Neenah GessnerSean T. Erwin, President and Chief Executive Officer, Neenah Paper

Neenah Gessner manufactures automotive filter media, vacuum cleaner filter mediaand base papers for adhesive tapes. Approximately 50% of its revenue comes fromautomotive filters. Its automotive filter media cover the full range of conventionalapplications: air, oil, fuel and cabin air filters. The media are predominately paper-basedfilter media consisting of cellulose fibres and the various binders/resins that help themedia withstand the prevailing conditions in which they operate.

Paper manufacturing under the Gessner name has a long history which can be tracedback to 1845: the date when the first German filter paper mill carried the Gessnername. In 1955, automotive filter papers for the automobile industry were initiallyproduced at the Bruckmuehl plant. A few years later, additional paper machines wereinstalled in the neighbouring town of Feldkirchen-Westerham. These were sooncompleted with impregnation equipment.

In 1998, Gessner, consisting of both its manufacturing plants, was acquired by theAmerican FiberMark group. Since then, base papers for abrasives and adhesive tapes aswell as automotive filter and vacuum bag papers have been produced under the nameof FiberMark Gessner GmbH and exported all over the world. Neenah Paper Incacquired FiberMark’s German subsidiaries in November 2006 for US$218 million,US$160 million of which was funded with available cash (largely derived from the saleof woodlands in Nova Scotia) and US$58 million was borrowed against Neenah’srevolving credit facility. These operations, now known as Neenah Gessner and NeenahLahnstein, consist of three manufacturing sites producing a diverse range of products,including automobile filter media, tape and abrasive backings, and other specializedprinting and coating substrates. In 2005, FiberMark Germany’s operating income wasapproximately US$29 million on net sales of US$221 million.

Neenah Paper is listed on the New York Stock Exchange and manufactures anddistributes a wide range of premium and speciality paper grades. The company alsoproduces and sells bleached pulp, primarily for use in the manufacture of tissue and

Neenah GessnerWeidacher Strasse 30D-83620 Feldkirchen-WesterhamGermanyTel: +49-8062-703-411Fax: +49-8062-703-17411E-mail: [email protected]://www.neenah-gessner.de

Neenah Paper Inc3460 Preston Ridge RoadSuite 600Alpharetta, GA 30005 USA Tel: +1-678-566-6500http://www.neenahpaper.com


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writing papers. Neenah Paper is based in Alpharetta, Georgia, USA, and has manufacturingoperations in Wisconsin, Michigan, USA, and in the Canadian provinces of Ontario andNova Scotia. The company was established in 2004 as a vehicle for a spin off of parts ofthe Kimberly-Clark Corp but its origins date back to 1885 when the Neenah Paper Coestablished a single paper mill in Neenah, Wisconsin, USA. Neenah is now an independentpublic company and Kimberly-Clark has not retained any ownership interest. Kimberly-Clark is, however, still the biggest single customer for Neenah’s pulp operations.

COMMENT:Neenah Gessner is an important supplier of paper-based filter media for the automotivesector and brings a strong revenue and profit contribution to Neenah Paper. Neenah isoperating on high levels of debt, a legacy of the spin-off from Kimberly-Clark, and needsoperating income to finance its substantial interest expense. It has been acting rapidly toshift its business towards higher value paper manufacturing and away from pulpoperations which had comprised more than 50% of revenues as recently as 2005.Following its purchase of Gessner and Lahnstein in Germany, in January 2007 Neenahadded the Fox River Paper Co in the USA to its fine paper business.

The urgency with which Neenah’s management has pursued the transformation of theoverall business shape has meant that while the Gessner operations have beenincluded as part of Neenah’s Technical Products Division there has been minimalintegration to date. Indeed there is limited overlap with Neenah’s existing technicalproducts and it would seem likely that a more integrated Gessner business will formthe basis for a more substantial technical products division. Gessner is already aneffective exporter but addition of manufacturing capacity in Asia and the USA wouldopen the door to establishing a major global player in the paper filter media market.

KEY FIGURES: NEENAH PAPER INC (2006–2007)

(US$ million) Three months ended 30 June Six months ended 30 June

2007 2006 2007 2006

Net sales 258.1 142.8 482.8 275.7

Of which Technical Products 102.5 33.8 203.2 66.8

Cost of sales 227.4 116.7 408.6 226.1

Gross profit 30.7 26.1 74.2 49.6

Gain on sale of woodlands 1.5 122.6 2.9 122.6

Operating income 11.4 138.9 39 148.9

Of which Technical Products 8.7 2.9 18.9 4.9

Interest expense (net) 6.5 4.1 12.5 8.6

Net income 2.6 73.3 17.3 74.2


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NGK INSULATORS LTD2-56, Suda-choMizuhoNagoya 467-8530Japan Tel: +81-52-872-7181 Fax: +81-52-872-7690http://www.ngk.co.jp

KEY EXECUTIVES:Masaharu Shibata, Chairman

Shun Matsushita, President and Chief Executive Officer

NGK Insulators employs 10 696 staff in production facilities and sales offices in allcontinents and recorded sales of ¥320 billion in the year ended 31 March 2007. Itoperates worldwide in four business groups:

• Power;• Ceramic Product;• Engineering; and• Electronics.

The Ceramic Product business group includes three units: automotive and industrialceramics, industrial process applications, and a new diesel particulate filter business. Thisbusiness exploits the company’s honeycomb ceramic technologies (NGK’s proprietaryHoneyceram® technology lies at the heart of many automotive catalytyic converters).

The diesel particulate filters are composed of a ceramic honeycomb structure with thechannels plugged at alternating ends, thereby forcing diesel exhaust gas to flow throughthin ceramic walls that act as filters for the particulate matter. NGK started mass-production of its silicon carbide diesel particulate filters from April 2003. Since then,NGK’s silicon carbide diesel particulate filters have been supplied to automobilemanufacturers worldwide, most notably in Europe, the USA, South Korea and Japan.Demand for silicon carbide diesel particulate filters is expected to grow due to theworldwide trend toward stricter regulation of diesel exhaust emissions.

NGK first developed diesel particulate filters using cordierite, based on theHoneyceram technology. In the last few years diesel particulate filters using silicon-bonded silicon carbide have been developed and commercialized and these aregenerally more suited to passenger automobile applications whereas NGK has usedcordierite for some time in heavy-duty vehicle diesel particulate filters. The company’sexpertise in processing ceramic substrates allows variation in the pore structures ofthe materials used. Silicon-bonded silicon carbide has the right characteristics fordiesel particulate filters operating in conjunction with a fuel additive system because itpossesses higher thermal shock resistance than cordierite. Silicon-bonded silicon


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carbide also has excellent performance for catalysed diesel particulate filter systemsbecause of its flexible porosity and pore size control, which enables low pressure dropperformance. Cordierite has the potential to achieve high porosity and, by coating withlarge amounts of washcoat, low pressure drop can again be achieved. This makescordierite a viable diesel particulate filter material for passenger automobileapplications, provided the engine management conditions are appropriate.

NGK manufactures silicon carbide-diesel particulate filters in its Komaki plant in Japanand in a dedicated production facility in Poland.

NGK Insulators Ltd was first established in 1919 as a spin-off of Noritake’s InsulatorDivision. In 1936 the NGK Spark Plug Co Ltd was established as a spin-off of NGK’sSpark Plug Division. In 1976 NGK Europe GmbH was established in Germany and thecompany began manufacturing and marketing Honeyceram.

In 1985 NGK Ceramics Europe SA was established, starting production ofHoneyceram in Belgium. In 1988 NGK Ceramics USA Inc was established, beginningproduction of Honeyceram in the USA. In 1996 PT NGK Ceramics Indonesia wasestablished as a production base for Honeyceram in Indonesia. By 1999 accumulatedproduction of Honeyceram had reached 400 million units. In 2000 NGK CeramicsSouth Africa (Pty) Ltd was established as a production base for Honeyceram in SouthAfrica. NGK Ceramics Suzhou Co Ltd was established in China in 2001 to produceHoneyceram and the same year accumulated production of Honeyceram reached 500million units. In 2003 NGK Ceramics Polska SpZoo was established as a productionbase for diesel particulate filters in Poland.

COMMENT:NGK is building on the global success of its Honeyceram cordierite product forcatalytic converters with its recently developed silicon carbide-based diesel particulatefilter units. Sales are growing rapidly for this product, after winning its first commercialapplication in Hino Motors’ Dutro truck in August 2003, and NGK has the globalinfrastructure to allow it to keep pace with increasing demand for diesel emissioncontrol products as emissions regulations tighten and diesel engine use increases inthe world’s passenger vehicle fleets. Being able to piggy back on the Honeycerambusiness should provide a competitive advantage in this hard fought market sector.

KEY FIGURES: NGK INSULATORS LTD (2003–2007)


(¥ billion) Six months ended 30 September2007 2006

Net sales 173.7 143.4Cost of sales 113.1 96.5Gross profit 60.5 46.9

Operating income 34.9 22Net income 25.8 12

103


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2007 2006 2005 2004 2003

Net sales 320.1 283.8 266.1 251.3 301.8

Of which ceramics 126.5 95.8 83.8 76.4 67.1

Operating income 52 31.3 24.3 19 15.7

Net income 29.4 16.5 12 8.4 9.2

Research and development expenditure 12.2 11.3 12.2 14.1 14.1

Of which ceramics 3

Number of employees 10696 10342 9329 8693 11071


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PARKER HANNIFIN

Parker Hannifin (UK) Ltd Filter Division Europe

Shaw Cross Business Park Dewsbury

West Yorkshire WF12 7RD

UK Tel: +44-1924-487000

Fax: +44-1924-487001KEY EXECUTIVES:Don Washkewicz, Chairman and Chief Executive OfficerJohn Oelslager, Vice President and President—Filtration Group

Parker Hannifin is a diversified industrial company with a US$10 billion turnover thatspecializes in hydraulic and pneumatic systems for motion control. It has significantassets in the filtration industry, of which a small part – Racor – is concerned withengine filtration.

Racor makes fuel, oil and air filtration systems for engines used in varioustransportation and static engine applications. It operates three US manufacturingfacilities in California, South Carolina and Mississippi, and manufactures overseas inBrazil, the UK, Finland, South Korea and South Africa.

Products include engine air intake filters, air pre-cleaners, fuel filters, in-line fuel heatersto prevent waxing of diesel fuel at low temperatures, transmission filters, bypass oilfilters, spin-on oil filters and cartridge oil filters.

Parker Hannifin acquired Racor in 1985 and proceeded to acquire additionalcapabilities: with the addition of a lube oil filter line from Oberg International in 1992;the engine air filtration business of NuTech Filter Corp in 1994; Banner Filters in 1997;and the engine air filtration business of Camfil-Farr in 2002.

COMMENT:Racor specializes in filters for demanding engine applications, whether in marine,power generating or heavy-duty automotive duties. It has particularly strong

Parker Hannifin Corp6035 Parkland Boulevard

Cleveland, OH 44124-4141USA

Tel: +1-216-896-3000http://www.parker.com/Filtration

Racor DivisionPO Box 3208

3400 Finch RoadModesto, CA 95353

USATel: +1-209-521-7860

Fax: +1-209-529-3278


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106

capabilities in fuel filtration but has added new products and associated manufacturingcapabilities over the twenty or so years since Parker Hannifin acquired the companyand this has broadened the range of fluids and performance levels that it can address. Ithas the strongest presence in the marine market but has also had success in moredemanding diesel-engine applications in the off-road, commercial and heavy-dutypassenger vehicle markets.

Racor is a small part of Parker Hannifin’s operations but has received continuinginvestment in the form of strategic acquisitions and licensing deals, which have madeRacor a strong niche player. It is difficult to be sure what the future holds for Racor, as itsactivities lie outside Parker Hannifin’s core business, and indeed outside the main thrustof Parker’s filtration business since it acquired UK-based domnick hunter group in 2005,but the group overall is continuing to grow at an impressive rate and return a healthyprofit, suggesting that no change in the present strategy is likely in the short term.

KEY FIGURES: PARKER HANNIFIN CORP (2005–2007)

(US$ million) Year ended 30 June

2007 2006 2005

Net sales 10718 9386 8069

Cost of sales 8273 7368 6391

Gross profit 2445 2018 1677

Net income 830 673 604


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PURADYN2017 High Ridge Road

Boynton Beach, FL 33426USA

Tel: +1-561-547-9499Fax: +1-561-547-8629

http://www.puradyn.comKEY EXECUTIVES:Joseph V. Vittoria, Chairman and Chief Executive OfficerKevin G. Kroger, President and Chief Operating OfficerCindy Lea Gimler, Chief Financial OfficerAlan J. Sandler, Vice President and Chief Administrative OfficerKathryn A. Morris, Director, Corporate Communications

Puradyn Filter Technologies Inc is a relatively young company that designs,manufactures and markets the puraDYN® bypass oil filtration system. This systemcontinuously filters lubricating oil by reducing solid contaminants to less than 1 µm, aswell as removing liquid contaminants, therefore maintaining the oil’s viscosity andextending oil drain intervals.

The puraDYN® system is effective for internal combustion engines, hydraulic applicationsand automatic transmissions in the automotive, transportation, construction, marine,agriculture, mining, military, and power generating industries. puraDYN’s patented andproprietary system is a cost-effective and energy-conscious solution targeting anestimated annual US$13 billion potential market. In addition to the savings realized by thereduced purchase of new oil and the cost of disposing of used oil (up to 90%), as well asextended equipment life, the puraDYN® Bypass Oil Filtration System has been certified asa Pollution Prevention technology by the California Environmental Protection Agency.

The company has established aftermarket programmes with several of thetransportation industry leaders such as Volvo Trucks NA, Mack Trucks and Paccar.

The company was first incorporated in 1988 under the name TF Purifiner Inc. In 1995 itestablished a UK subsidiary – TF Purifiner Ltd – under a joint venture agreement withCentrax Ltd. The following year TF Purifiner Inc became a public company traded onthe OTC Bulletin Board. In 1998 TF Purifiner Inc became puraDYN Filter TechnologiesInc. This name change followed a lawsuit questioning the use of Purifiner as a tradename; however, the end result was that Puradyn was awarded all manufacturing andmarketing rights. In 2000, the company successfully bid for full control of the UKdivision. Centrax sold Puradyn certain foreign patents, as well as a side-by-side full-flowand puraDYN® bypass filter designed primarily for original equipment manufacturers,along with inventory and factory equipment. Now operating in the UK under the namepuraDYN Filter Technologies Ltd, the subsidiary continues to operate and market in thecountries formerly serviced by the joint venture.


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In 2001 the company became listed on the American Stock Exchange. 2002 saw astrategic alliance with Honeywell Consumer Products Group (CPG), producer ofFram® filters, through which the Puradyn system would be co-branded with the FramFleet Care® trademark and distributed through Honeywell CPG’s distributionnetwork. In August 2005 Puradyn voluntarily delisted from the American StockExchange and returned to trading on the OTC Bulletin Board.

COMMENT:Puradyn is a young company trying to bring a new technology to a reluctant market. Itsfinancial results are perilous, with sales for the first half of 2007 nearly 7.5% down on thesame period the previous year and the company overall running at a significant loss. Itcontinues to attract investors who foresee strong returns in the medium to long term,with Puradyn estimating a potential US$13 billion value for the sector. With interestexpenses on its borrowings for the first half of 2007 equivalent to 22% of sales revenue,the future looks extremely challenging even with ever-strengthening environmentalconcerns apparently favouring the wider adoption of bypass filtration systems.

KEY FIGURES: PURADYN FILTERTECHNOLOGIES INC (2005–2007)

(US$ thousand) Three months ended 30 June Six months ended 30 June

2007 2006 2007 2006

Net sales 787 855.3 1553.2 1678.1

Cost of sales 702.3 648.9 1350.3 1264.2

Loss from operations 376.6 519.2 887.4 952

Interest expense 130.5 124.2 343.1 253.4

Net loss 497.7 631 1208.6 1180.7

(US$ thousand) Year ended 31 December

2006 2005

Net sales 3072.9 2475.3


Loss from operations 2185.6 2793.7

Interest expense 518.3 460.5

Net loss 2653.4 3190.8


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PUROLATORPurolator Filters NA LLC

Headquarters3200 Natal Street

Fayetteville, NC 28306USA

Tel: +1-910-425-4181Fax: +1-910-425-9302

http://www.pureoil.comKEY EXECUTIVES:Rob Malone, Chairman and Chief Executive OfficerMark Godwin, Director—OperationsMichael Sommerlad, Director—PurchasingBrian Yates, Director—Production Engineering

Purolator is one of the largest automobile filter makers in the USA. In 2005, itrecorded sales of US$267 million and employed 1000 people in two US locations – amanufacturing facility in Fayetteville, North Carolina, and a distribution centre in SaltLake City, Utah. It has been jointly owned by Bosch and Mann + Hummel since April2006, ending 63 years of American ownership.

Today it serves the North American market for original equipment manufacturers andthe aftermarket with a full range of consumable filters including engine oil, transmission,fuel, and engine air and cabin air types. In addition to its regular PremiumPlus products itoffers step-up PureOne ranges of air and oil filters, matching the premium rangesoffered by other mass-market suppliers to the US market. Purolator sells to the do-it-yourself and do-it-for-me aftermarket sectors through major retailer networksincluding Advance Auto Parts and Pep Boys. It also manufactures filters for sale underprivate labels. In 2005 the companies supplied in this way included Motorcraft (Ford’saftermarket parts brand), Quaker State, Shell and Chevron Texaco.

Purolator has been manufacturing, marketing and distributing filters since 1923. ErnestSweetland and George H. Greenhalgh developed the first automotive oil filtrationsystem in 1923. They called their invention a Purolator, a combination of the words“pure oil later”. That same year, James A. Abeles converted a Twelfth Avenue garage inNew York City to manufacture the product under a company called MotorImprovements Inc. The original Purolator was an upright series of seven twill-weavecloth-covered, perforated plates encased in a heavy-duty cast container. The productfeatured a sight feed glass on one side so that the oil flow could be viewed, and thefilter was changed when the flow diminished to a trickle. The Maxwell Chalmers Cosaw promise in the development and installed a Purolator on a Maxwell automobilethat was test-driven from Detroit to the West Coast and back in 1924.


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110

Also in 1924 Walter P. Chrysler split from the General Motors group andmanufactured an automobile under his own name—with hydraulic brakes, a fullpressure oil system, shock absorbers and air and oil filters (Purolator filters). Soon,Purolator filters became standard equipment on a parade of automobiles –Studebaker, Pierce Arrow, Hupmobile, Peerless, Cadillac, Oakland, Gardner, Moon,Jordan, Buick, Dodge and others – as well as on farm equipment, where dust and dirtdevastated tractor engine life. In 1937 the Purolator cotton waste oil filter wasdeveloped, providing the first filter replacement capability. Soon, a Purolator filter withpaper filtration media was introduced and became state-of-the-art for decades. In1940 Motor Improvements changed its name to Purolator Products Inc.

During 1943 Purolator developed the first full-flow filter that was capable of filtering100% of the engine’s motor oil. This led to the lubrication system that is in use ontoday’s automobiles. Three years later, Purolator, in association with Chrysler Corp,patented the first pleated paper oil filter. In 1948 Purolator developed the first originalequipment block-mounted oil filter. This was an important milestone in the filterindustry because now the oil filter had become a standard part of the automobileengine. Earlier oil filters were typically mounted on the firewall somewhereunderneath the bonnet of the vehicle. Purolator claims to have developed the firstspin-on oil filter in 1955, although Wix also claims this landmark with its 1954 patent.

Purolator’s parentage has been rather complicated in recent years. When Bendixbought Fram in 1967, a US Federal Trade Commission ruling required Bendix to divestsome of its filter operations. So Bendix spun off a company called Facet Enterprises Inc,which was listed on the New York Stock Exchange in 1976. Facet then acquiredPurolator’s Automotive Filters in 1987 and the following year Pennzoil Corp boughtFacet, only to spin off the Purolator Products Co in 1992 with a listing on the NASDAQboard. In 1994 Mark IV acquired the Purolator Products Co and divided the businessinto automotive and industrial products. It sold the automotive filters to Arvin in 1999.In 2000 Arvin merged with Meritor to form ArvinMeritor, and the light vehicleaftermarket business of ArvinMeritor was subsequently acquired by Robert Bosch andMann + Hummel in a 50:50 joint venture in 2006.

COMMENT:Bosch and Mann + Hummel paid €72 million each for Purolator in April 2006. Eachreceived a €2 million profit share on the first nine months following the acquisitionbut each professed different motivations for making the purchase. At the time of theacquisition, Mann + Hummel’s Chief Executive Officer described Purolator asperfectly complementing its business in North America in the original equipmentsector and in the independent aftermarket. In other words it filled a gap in Mann +Hummel’s global coverage. Unlike Mann + Hummel, Bosch already had a broad-reaching presence in the North American aftermarket, including filters, but hadidentified expanding its filter business as an integral part of the growth strategy for itsAutomotive Aftermarket Division.


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Since the acquisition, the two German parents have kept quiet about their long-termstrategic plans for Purolator as they search for synergies between the acquisition andtheir existing strengths—filter sales to original equipment manufacturers in Mann +Hummel’s case and the North American aftermarket in Bosch’s case. Bosch and Mann+ Hummel both have impressive track records that include high levels of spending onresearch and development and a propensity towards long-term planning. As aconsequence it seems likely that Purolator’s ownership is now entering a considerablymore stable phase than the previous twenty years. What is more, Purolator’sownership status is rather different from those of its principal competitors: Wix,Champion Laboratories and Fram.


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RYCORyco Filters245 Sunshine Road,TottenhamVictoria 3012AustraliaTel: +61-3-9243-3333Fax: +61-3-9243-3366http://www.rycofilters.com.au

KEY EXECUTIVES:Bob Pattison, Chief Executive, GUD Automotive

Terry Cooper, Managing Director, Wesfil Australia

Ryco supplies engine (air, fuel and oil) and cabin air filters for the Australian automotivesector. It is owned by GUD Holdings, a diversified industrial conglomerate thatmanufactures and markets industrial and consumer products under the following brands:

• Sunbeam small appliances;• Victa garden products (lawn mowers);• Oates cleaning hardware;• Ryco, Wesfil and Goss automotive parts;• Davey pumps, water pressure systems, and swimming pool equipment;• Spa-Quip spa controllers, heaters, pumps and filters;• Microlene, Steriflo and Filterpure water treatment products; and • Lock Focus, Locktech and Kiroo security products.

Ryco provides filters for the major Australian automotive trade suppliers with theRyco brand, and supplies the independent resellers and smaller aftermarket operatorswith the Wesfil and Cooper brands.

In the last year the company has launched two product ranges: in 2006 it introduced acabin air filtration system designed to reduce levels of pollutants and allergens insidethe vehicle; and, in May 2007, a range of in-tank fuel filters.

Ryco Filters’ origins can be traced back to the association of three entrepreneurialmen who knew each other through the Melbourne-based automotive industry. In1936, Bill Ryan secured the distribution rights for oil filters from the US-based FramCorp and set up his own company W.L. Ryan Pty Ltd to begin importing filters.Because of the Second World War, it became impractical to continue importing andthe decision was made to manufacture filters in Australia to meet major wartimerequirements. In the meantime, GUD Manufacturing Co Pty Ltd had been officiallyregistered on 2 December 1940 by Harry Nelson Sharples and Arthur James Harford,and was engaged in the production of a wide range of automotive chemicals such asDri-lube, Bearing Blue and a lubricant for battery terminals. Ryan’s relationship with


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113

Harford and Sharples resulted in the manufacture of filters with GUD Manufacturingproducing the tinplate canisters and W.L. Ryan supplying the cotton filter media. Bymid-1942 Bill Ryan had acquired a substantial shareholding in GUD Manufacturing.

The association with Fram was curtailed in response to the Australian Government’srequest that all Australian companies cease spending US dollars in royalties. From thispoint two GUD Manufacturing Co filter brands were established, the Ryco brand andthe GUD brand. The range of canister type filters developed quite considerably toinclude cotton roving style fuel filters and felt filters during the next few years. Throwaway oil filters became additions in 1949–50 and in mid-1950 paper oil and fuel filterswere introduced, replacing the oil bath air filters of the era. GUD Manufacturing Cocommenced spin-on oil filter production in the late 1950s. By the early 1960s,automotive filter designs had become more complicated, requiring larger productionruns and stock commitments to cater for the boom in vehicle sales. The decision wasmade to market all GUD Manufacturing Co automotive filters under the one Rycobrand name. Ryco continues to be Australia’s top selling brand of automotive oil, airand fuel filters sixty years on.

In 1958, GUD Holdings Ltd was formed to acquire the capital of GUD ManufacturingCo Pty Ltd. The company first appeared on the Melbourne Stock Exchange in 1959,where it remains today. The Ryco filters business is complemented by the Wesfilbusiness, which imports filters, and distributes them under the Wesfil and Cooperbrand names in the Australian aftermarket.

COMMENT:Over recent years, GUD has struggled to maintain healthy trading margins in the faceof low cost competition from imported goods. In the late 1990s the Sunbeam divisionceased manufacturing in Australia and started sourcing its goods entirely overseasfrom low cost suppliers in China. Following the success of this initiative, GUDannounced in 2004 that it would follow a similar model for its filters business and bythe end of 2006 it had closed its last filter manufacturing facility (located in Auckland,New Zealand). As a result the EBIT to sales ratio has improved from 9% in 1999 to25% in 2006. Filters are sourced from suppliers in Thailand, South Africa, Indonesia,South Korea and China, to designs and standards specified by Ryco.

The company has a comprehensive range of products and through its market presenceand high brand recognition looks set to maintain its leadership in its home market,albeit as a sourcing and distribution company rather than as a manufacturer. The latestfinancial year has been affected by the restructuring costs associated with closing itslast manufacturing plant in New Zealand. The filter market in Australia is stable, with anincrease in the automobile population being balanced by an increase in serviceintervals. However, the Goss carburettor business is in long-term decline as fewerautomobiles with carburettors remain on the roads, and this affected the financialsuccess of the Automotive Products Division in 2006–7.


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KEY FIGURES: GUD HOLDINGS LTD (2006–2007)

(AUS$ million) Year ended 30 June

2007 2006

Net sales 518.9 462.7

Of which Automotive Products 68.6 70.4


Gross profit 191.4 172.2

Net profit 33.6 40.2

Of which Automotive Products 13.3 18.8


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115

SEFARFiltration Division

PO BoxCH-8803 Rüschlikon

SwitzerlandTel: +41-1-724-6511

Fax: +41-1-724-1525http://www.sefar.ch

KEY EXECUTIVES:Christoph Tobler, Chief Executive OfficerUrs H. Toedtli, Filtration Division

Sefar is an independent Swiss corporation, controlled by its founding families but activethroughout the world. It is a world leader in providing screens and filter media forscreen printing and filtration applications. With subsidiaries in 21 countries andrepresentation in another 75 countries, the company has sales of CHF345 million ayear and 2000 employees.

Sefar’s expertise lies in woven filtration materials and its filtration division providessolutions for a wide range of industries:

• chemical and pharmaceuticals: filtration, screening and drying processes;• mining and refining: filtration and screening processes;• environmental: filtration processes;• food and beverages: filtration, screening and drying processes;• healthcare: filter components for medical and diagnostic devices;• filter elements: filter components for appliances, automotive and electronic

industries;• functional fabrics: customer specific technical specialities; and • architecture: architecture and interior design.

One of Sefar’s core skills is the manufacture of fabrics with precise mesh openings. Infiltration such precision ensures the exact separation of solid, liquid and gaseousmaterials. Threads diameters used are between 25 µm and 1 mm and the smallestmesh openings are in the range of 10 µm, with a tolerance of ±2 µm. Sefar has state-of-the-art production facilities located in Switzerland, France and Thailand, where fabricsare manufactured on computer-controlled weaving machines. These materials are usedto provide filter elements for the automotive industry. These include filters and filtermedia for fuel, brake, transmission, water and hydraulic systems.

Sefar fuel filters provide highly precise and reliable screening performance down to afew microns as well as excellent chemical resistance to the fuels themselves. Sefar’ssynthetic Nitex fabrics exhibit precise mesh openings and tightly controlled fabricproperties, thereby guaranteeing high reliability and life-long consistent screening


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performance of the filter. Their high flow capacity and characteristics are especiallysuited for the requirements of modern fuel injection systems. Fabricated products forfuel filtration are supplied in ribbon or tube form.

Sefar’s Tetex Mono fabric range for use in fuel tank filters is designed to provide highmechanical and chemical stability as well as consistent filtering performance. It isavailable in ribbon form or pre-cut into custom shapes.

Hydraulic brakes, transmission, power steering and hydraulic cartridge systems all useSefar’s fabrics as security filters in order to protect sensitive valves and components.Non-shedding raw materials and high open filter areas prevent filters from blockingand ensure consistent results over the whole lifetime of the filter. Nitex and Petexfabrics are used in these applications.

Non-shedding, non-corroding, self-cleaning and precision-woven filter media arerequired for automobile windshield wiper and water reservoirs. Sefar produces Nitex,Petex and Propyltex fabrics for these applications. These materials can be mouldedinto almost any kind of plastic housing.

In 1830, Pierre Antoine Dufour laid the foundation for present-day Sefar. Employed byHeinrich Bodmer, he produced silk bolting cloth for the sieving of flour in Thal, in theSwiss canton of St Gallen. Three years later, he split from Bodmer and founded Dufour,a company that quickly and successfully expanded abroad.

In 1907, Dufour and five other Swiss family-run companies joined together to formSchweizerische SeidengazefabrikAG. Five years later, the Züricher BeuteltuchfabrikAG wasalso integrated. This association dominated the world market for silk gauze for decades.Although a single financial entity, Schweizerische Seidengazefarbrik Zürich AG (SSZ),Schweizerische Seidengazefarbrik ThalAG (SST) and Züricher BeuteltuchfabrikAG (ZBF)operated separately on the market before they merged in 1995 to become SefarAG.

Starting with the acquisition of Tetsilk in the USA in 1932, many subsidiaries have beenestablished all over the world, most of them in the last 10 years.

COMMENT:Sefar offers woven filtration media which provide the basic screening function toprotect automobile components from contaminants in the fuel, hydraulic fluids andwater in the car. Within this niche it is a major independent player, operating on a trulyglobal basis while retaining its family ownership. Sefar’s woven media require differentmanufacturing skills and find application in specific applications where high flow rate isimportant. Sefar’s strength is its ability to supply materials with the precision requiredfor the application, and to do so in a form compatible with the design requirements ofcomponents specific to a vehicle type and model. Thus, Sefar not only produces fabricin roll form, it can supply semi-finished ribbons, tubes and prefabricated shapes readyfor the customer to incorporate into a particular component.


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SOGEFI

Sogefi Filtration do Brasil Ltda Avenida Piraporinha, 251 – sala “A” – Vila Planalto

CEP 09891-000 Sao Bernardo do Campo Sao Paulo

Brazil Tel: +55-11-4341-2548

Fax: +55-11-4341-2655 http://www.fram.com.br

KEY EXECUTIVES:Rodolfo de Benedetti, ChairmanEmanuele Bosio, Chief Executive Officer, SogefiPierre L’Alloret, Filters Division, Original Equipment Manufacturer–OriginalEquipment Spares Sales and Development, General Manager Keith Drew, Filters Division, Operations General ManagerMario Milani, Chairman, Sogefi Filtration South America

Headquartered in Italy, Sogefi is a multinational group, specializing in two product lines:engine and cabin filtration, and suspension components. The company has a presenceon four continents and in 14 countries, with 50 offices of which 41 are manufacturingfacilities. A market leader in its core sectors in Europe and South America, Sogefimarkets its products to original equipment manufacturers and as original equipmentand independent replacement parts. It produces some 190 million (oil, fuel, engine airand cabin air) filters a year. Half of its sales are to major worldwide manufacturers ofpassenger automobiles and commercial vehicles.

Despite its size today, Sogefi is one of the younger of the top-flight automotive filtermakers. It was founded in 1980 in Mantua and later the same year the CIR Group, anindustrial holding company with a background in leather tanning, took a majorityinterest in the business and set it on a rapid growth path. Listed on the Milan stockexchange since 1986, Sogefi is still owned 57.4% by the CIR Group today.

Sogefi’s growth has come about thanks to a frenetic pace of acquisition andinvestment. In 1982 it acquired the Mantua company Fiaam Filter SpA, a manufacturerof a wide range of automobile filters. Two years later, as a result of joint venture

Sogefi SpAVia Flavio Gioia, 8

I-20149 MilanItaly

Tel: +39-02-4675-01Fax: +39-02-4351-1348

E-mail: [email protected]://www.sogefi.it

Filtrauto SA Parc Ariane 4–7,

avenue du 8 Mai 1945 F-78286 Guyancourt Cedex

France Tel: +33-1-6137-4300

Fax: +33-1-6137-4301 http://www.filtrauto.com


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agreements with AlliedSignal, Sogefi took over Allied’s European industrial andcommercial business, operating through its Fram Europe subsidiaries thus gainingaccess to the Fram designs and branding outside North America. This included plantsin the UK and Spain and companies in The Netherlands and Sweden. Fiaam Filter SpAacted as the parent company for the venture with Sogefi owning 60% of the equity.

In 1988 Coopers Filters Ltd, a UK manufacturer of heavy duty automotive filters, wasacquired and the next year the French air filter company SPIS Sarl was added to theportfolio. In 1991 the group extended its presence in the South American market andacquired Europarts Industria de Autopecas Ltda, an AlliedSignal manufacturer of filtersand motor-horns in Brazil. This South American activity was extended further in 1996with the group taking a majority share in a group of Argentinean filter companies. Thisshare was taken to 100% in 1997. In 1999, Sogefi bought PBR SA of Barcelona, thesecond largest filter producer on the Spanish market. 2000 saw Sogefi taking 100%control of Fiaam Filters as AlliedSignal withdrew to its North American stronghold.

This was followed by the acquisition of the French company Filtrauto from Valeo.Filtrauto brought the Tecnocar, Crosland and Purflux filter brands and establishedSogefi as a European market leader in automotive filters. Today, Filtrauto SAmanufactures products for the whole Sogefi Filtration Division and markets thesedirectly in France under the brand names Purflux, Tecnocar, and Fram in theindependent aftermarket.

Filtrauto’s head office is located in Guyancourt, in Yvelines, France, together with themost important design office of Sogefi Filtration, responsible for developing productsfor passenger automobiles and light vans. The Filtrauto SA plants are locatedrespectively in Marcillac, Vire, Louvigné de Bais, and Saint Père en Retz, France.

In May 2006, the Filtration Division established a 70:30 joint venture with China’sZhejiang Universe Filter Co to produce automotive filters in Shanghai’s Pudong NewArea in China. This allows Sogefi to operate locally from 2007 serving bothautomobile manufacturers and the aftermarket. It is planning further joint ventures inIndia and Korea during 2008.

Sogefi SpA aims to increase sales to €15 million in China by 2010 from its automotiveand heavy-duty applications filters business – up from the €2.1 million euros projectedfor 2007.

During 2006, a number of changes were made in Sogefi’s manufacturing operationsincluding closure of the Can Jardì and Can Rosè, Spain, locations and transfer of thefiltration activity to the new site at Cerdanyola, Spain, and transfer of panel air filterproduction from Mantua, Italy, to the Medvode, Slovenia, site. This process will continuein 2007, with Sogefi announcing plans to further restructure its manufacturing operations,closing three sites and reducing capacity at two others. It also plans to rationalize the filterbrands presently offered to the independent automotive aftermarket.


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COMMENT:Sogefi has accumulated a number of strong European brands and has establishedstrong market positions in South America, Spain, France, Italy and the UK. It is nowturning its attention to Asia where it has found market access difficult up to now. It hasno links with Japanese filter makers but its strategy of working with joint venturepartners in Korea, India and China should provide better access to the rapidly growingproduction and consumption markets in the region. Sogefi has also stepped up its low-cost procurement activities, establishing a dedicated office in Shanghai in 2006.

Rationalizing the brand offering will ease some of the confusion in the aftermarket—and simplify the company’s logistics – while retaining the important brand distinctionsfor premium and heavy-duty products.

Looking ahead, the company has identified three areas as targets for long-termtechnical innovation in the Filtration Division: in-tank diesel filters; oil coolers withaluminium foam; and new applications for truck braking systems.

The Group has suspension operations in North America but has no penetration of thefiltration market there due to the historic link with the original Fram company which is nowpart of Honeywell. Perhaps one day the Fram name will come under single ownership again.

In the first nine months of 2007, sales grew by 4.4% for the Filtration Division andEBITDA was €57.1 million (13.9% of revenues), up 8.1% against the correspondingperiod of 2006. The division’s earnings were €43.4 million (10.6% of revenues), up 11.1%.

The third quarter was particularly strong, largely due to excellent performance in LatinAmerica, plus an upswing in demand from French automobile manufacturers and theindustrial vehicles sector. A highlight for Sogefi was closing a major deal in the third quarterwinning a first-time order from Ford for diesel filter systems for the US market. This isexpected to bring annual revenues in excess of US$25 million dollars beginning in 2010.

KEY FIGURES: SOGEFI SPA (2005–2007)

(€ million) Three months ended 30 September Nine months ended 30 September

2007 2006 2007 2006

Net sales 255.6 232.5 797.4 765.5

Cost of sales 165.6 146.8 518.9 488.3

Operating income 28.3 25.4 84.4 80

Net profit 13 11.9 41.9 39.3



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2006 2005

Net sales 1018.6 1023.4

Of which oil filters 273.9 276.3

Of which air filters 120 118.6

Of which diesel filters 63.2 59.3

Of which petrol filters 37.7 38

Of which cabin filters 12.8 12.4


Operating income 106.6 105.6

Net profit 50.8 44.7

Employees 6168 6171

Of which filters 3603 3488


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SPX FILTRAN

KEY EXECUTIVES:Christopher J. Kearney, Chairman, President and Chief Executive OfficerJim Peters, President, Industrial Products and Services

SPX Corp is a global multi-industry manufacturer. Operating in more than 20 countrieswith approximately 14 000 employees, SPX is a provider of Flow Technology, Test andMeasurement, Thermal Equipment and Services, and Industrial Products and Services.

The company’s product portfolio includes pumps, valves, metering and mixingsolutions, air filtration and dehydration products, special service tools, diagnosticsystems and testing equipment, cooling towers, air-cooled condensers, boilers andresidential heating products, television and radio broadcast antennas, and powertransformers. These products are used by a broad range of customers in variousindustries, including food and beverage, personal care, power and energy, test andmeasurement, general industrial, refrigeration, heating, ventilation and air conditioning,process industries and transportation.

SPX’s automotive filter business operates within the Industrial Products and Servicessegment under the Filtran brand. Filtran’s felt filters use advanced materials, designedand manufactured by Filtran, to ensure effective removal of dirt particles fromautomobile transmission fluids. Products are developed in conjunction with originalequipment manufacturers to match designs and materials to the specific duty.

Filtran also offers the XL330 magnetic in-line filter to protect against contaminationafter a rebuild. Contamination can shorten the service life of a transmission orinterfere with the operation of valve bodies and solenoids causing erraticperformance. The filter’s magnet draws ferrous debris away from the media, increasingthe media’s capacity to filter nonferrous debris.

SPX was founded in Muskegon, Michigan, in 1911 as The Piston Ring Co. The companyname was changed to Sealed Power Corp in 1931. For much of its history, thecompany produced automotive components. It moved into automotive filtration in1973 when it acquired the Filtran business making transmission filters for automobiles.

SPX Corp 13515 Ballantyne Corporate Place

Charlotte, NC 28277USA

Tel: +1-704-752-4400http://www.spx.com

SPX Filtran875 Seegers Road

PO Box 328Des Plaines, IL 60016

USATel: +1-847-635-6670

Fax: +1-847-635-7724E-mail: [email protected]

http://www.spxfiltran.com


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The company diversified rapidly during the following decades and adopted its currentname in 1988. The biggest transformations came with the acquisitions of GeneralSignal Corp in 1998 and United Dominion Industries in 2001. These massivelyincreased the size of the company, adding industries to the portfolio and introducing aworldwide presence. SPX is traded on the New York Stock Exchange.

COMMENT:When Filtran was bought in 1973, SPX’s focus was entirely on supplying automotivecomponents to a growing US motor industry. Today, SPX’s focus lies elsewhere andFiltran finds itself in the Industrial Products and Services segment of a much larger andreoriented corporation. This segment contains those SPX businesses that are notglobal in scope, being essentially USA-focused, and which are not within sectors thecompany is currently expecting to strengthen through acquisitions. This is not themost encouraging environment for a business although Filtran continues to develop itsproduct range within the transmission filter niche, and contributes to a growingautomotive component contribution to its segment. It would not be a surprise,however, to see Filtran change ownership at some stage in the future.

KEY FIGURES: SPX CORP (2004–2007)


2007 2006 2007 2006

Revenues 1232.1 1033.2 3537.4 2981.6

Of which Industrial Productsand Services

248.6 206.3 713.4 609.3

Operating income 120.5 87.8 282.4 197.6

Net income from continuing operations

93.1 50.7 197.3 137.5


2006 2005 2004

Revenues 4313.3 3858 3639.1

Of which Industrial Products and Services 836.7 716 670.3

Of which Automotive Components 95.8 92.5 85.2

Gross profit 1200.4 1065.3 1024.5

Net income (loss) from continuing operations 220.5 1.2 (58)


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TENNECOWorld Headquarters

Tenneco500 North Field Drive

Lake Forest, Illinois 60045USA

Tel: +1-847-482-5000Fax: +1-847-482-5940

http://www.tenneco.comKEY EXECUTIVES:Gregg Sherrill, Chairman and Chief Executive OfficerBrent Bauer, Senior Vice President and General Manager, North AmericanOriginal Equipment Emission ControlJosep Fornos, Vice President and General Manager, European OriginalEquipment Emission Control

Tenneco is a US$4.4 billion global manufacturing company based in Lake Forest, Illinois, USA,with some 19 000 employees worldwide. The company is one of the world’s leadingdesigners, manufacturers and distributors of automotive emission control and ride controlproducts and systems for the automotive original equipment market and the aftermarket. Ithas nearly 80 manufacturing, technical and engineering facilities in 24 countries on sixcontinents. It became a standalone company in 1999, when its predecessor, the conglomerateTenneco Corp spun-off its packaging unit as a separate business, leaving TennecoAutomotiveas a focused automotive components company listed in its own right on the New York StockExchange. TennecoAutomotive became Tenneco Inc in October 2005.

Using a combination of leading-edge technology, manufacturing expertise anddedication to customer service, Tenneco has increased revenues and penetrated newmarkets to solidify its leadership in the global automotive supply industry. Tennecowas one of the first automotive suppliers to establish a presence in China and hasgrown to become that country’s leading emission control supplier.

Tenneco has a balanced customer base, serving original equipment manufacturers on aglobal basis, including General Motors, Ford Motor Co Volkswagen, DaimlerChrysler,PSA Peugeot-Citroën, Toyota, Honda and Nissan.

Tenneco was one of the first global suppliers to offer both additive and catalyst-coateddiesel particulate filter technologies in series production for Europe’s vehiclemanufacturers. It first began production of original equipment diesel particulate filtertechnology in 2000 in conjunction with PSA Peugeot-Citroën for the Citroën C5 andPeugeot 406 diesel passenger vehicles. The company has supplied diesel particulatefilters for DaimlerChrysler’s Mercedes-Benz C-Class, E-Class and CLK passengerautomobiles, Jaguar S-Type, Volkswagen Sharan and the Audi A6 and A4. The companyalso continues to supply PSA Peugeot-Citroën on its new Peugeot 407, Peugeot 807,Citroën C5 and C8, Fiat Ulysse and Lancia Phedra models.


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Tenneco generally has primary design, engineering and manufacturing responsibility fororiginal equipment emission control systems; it does not manufacture the catalyst-coated porous ceramic filters. The filters, incorporating precious metal catalysts such asplatinum, palladium and rhodium, are supplied by specialist suppliers as directed by theoriginal equipment customers. Tenneco generally earns only a small margin on thesecomponents of the system. The company adds its value to an emission control system:

• in designing the system to meet environmental regulations throughintegration of the substrates into the system;

• maximizing use of thermal energy to heat up the catalyst quickly;• efficiently managing airflow to reduce back pressure as the exhaust stream

moves past the catalyst;• managing the expansion and contraction of the emission control system

components due to temperature extremes experienced by an emissioncontrol system;

• using advanced acoustic engineering tools to design the desired exhaust sound;• minimizing the opportunity for the fragile components of the substrate to be

damaged when integrated into the emission control system; and• reducing unwanted noise, vibration and harshness transmitted through the

emission control system.

In 2006 the company introduced a retrofit diesel particulate filter for the Europeanindependent aftermarket in advance of the introduction of European Union legislationand tax incentives on retrofit units that came into effect in The Netherlands in July2006 and in Germany at the end of the same year. The Tenneco Walker® dieselparticulate filter features an innovative lightweight foam filter coated with preciousmetals and combines the catalytic converter and diesel particulate filter into one unit.This allows installers to quickly and easily replace the catalytic converter with thediesel particulate filter without adding additional weight and without disturbing thevehicle’s entire noise, vibration, harshness profile. Tenneco manufactures the dieselparticulate filter at its emission control manufacturing facility in Rybnik, Poland.

Later in 2006, Tenneco was named exclusive supplier for retrofit diesel particulatefilters to Toyota Motor Europe for its complete European diesel automobile range.Tenneco manufactures the full exhaust system, including the diesel particulate filter, forpart of the Toyota range and supplies diesel particulate filter units as a Tier 2 supplierto Sango and ArvinMeritor for the balance. The business involves coordination of aglobal supply chain with components coming from Japan, Germany, the UK, Turkey andPoland, as well as managing logistics and Tier 1, 2 and 3 suppliers on a global basis.

COMMENT:Tenneco now has a much clearer focus than the huge industrial conglomerate fromwhich it emerged in 1999. With two basic product areas – emission control systemsand suspension systems – and two main types of customer – original equipmentmakers and the aftermarket – the company should be able to focus on delivering the


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products its customers need where they need them. And it is doing so with greatsuccess. Worldwide the company serves more than 35 different original equipmentmanufacturers, and its products or systems are included on nine of the top 10passenger automobile models produced for sale in Europe and nine of the top 10 lighttruck and sports utility vehicle models produced for sale in North America for 2006.

This global outlook means that Tenneco has played a pioneering role in implementingdiesel particulate filters and so is well placed to benefit from the rapid growth in theiradoption, especially in Europe. Tenneco also has a tremendous base to exploit thefuture growth in the Chinese automobile market. The only problem is the significantlevel of indebtedness with which the company is operating. Servicing that debt places aconsiderable burden on the business and investors will be looking for this to bereduced and earnings to increase as the company’s strong sales growth continues.

KEY FIGURES: TENNECO INC (2004–2007)

(US $ million) Three months ended 30 September Nine months ended 30 September

2007 2006 2007 2006

Net sales 1556 1121 4619 3473

Cost of sales 1313 925 3869 2817

Operating income 57 43 209 157

Interest expense 32 30 112 102

Net income 21 7 67 34

(US $ million) Year ended 31 December

2006 2005 2004

Net sales 4682 4440 4213

Of which emissions control—aftermarket 384 368 365

Of which emissions control—original equipment market 2592 2758 2652

Operating income 196 217 170

Interest expense 136 133 178

Net income 49 56 9


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TOKYO ROKI3-12-3 Nakamachidai, Tsuzuki-ku, YokohamaKanagawa PrefectureJapan 224-0041 Tel: +81-45-945-8511 Fax: +81-45-945-8510 E-mail: [email protected]://www.roki.co.jp

KEY EXECUTIVES:Mitsumasa Ohno, President

Tokyo Roki manufactures catalytic converters, fuel filters, oil filters, oil coolers, engineair intake manifolds and air cleaners for the Japanese automotive industry. It operatesfour plants and employs 580 people (up from 500 in 2004) and recorded salesrevenues of ¥83.5 billion in 2006 (up from ¥64.0 billion in 2004). It counts all Japan’sautomobile makers among its customers.

Tokyo Roki is the only manufacturer in Japan that is responsible for every stage in theproduction of catalytic converters, from the processing of catalysts to canning.

The company’s fuel filters perform the same functions as conventional filters but theirmodular configuration ensures light weight and low cost. The company has developeda fuel filter for common rail engines.

The oil filters have been developed with the global environment in mind. The new spin-on-type oil filters are the worlds smallest. And when the ecologically friendly oil filtersare no longer of use, they can be collected in a separate garbage disposal system, andhave disposable parts that can be incinerated cleanly.

The company’s high-performance air cleaners are compact and light, they offer littleresistance to the air intake, they reduce noise, they are recyclable, and they can bedisposed of cleanly.

Tokyo Roki’s wholly owned Unicat subsidiary produces two particulate reductionsystems – the UCS and PMC systems – which offer different levels of particulatematter reduction and complexity. The PMC system is a straightforward catalystoxidation process whereas the UCS system employs a diesel particulate filter. Thecompany has also developed a urea-based selective catalytic reduction system to treatemissions of oxides of nitrogen.

Tokyo Roki Co Ltd was established in Tokyo in 1949, manufacturing and selling aircleaners and oil filters for internal combustion engines. In 1955 a headquarters buildingand plant were opened in Kawasaki. 1964 the Yokohama plant was completed and


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platinum-catalyst exhaust systems for diesel engines were developed. In 1966 theYokohama plant started the commercial production of disposable cartridge filters andlater the same year the Kusatsu plant was completed to start the commercialproduction of air cleaners. In 1969 the Hiroshima plant was completed to manufactureair cleaners. An additional plant was established in Sagami in 1971 to make oil coolers.In 1974 the Hamamatsu plant was built to mass-produce cartridge filters. Two yearslater, the Otsuki Plant was completed to start manufacturing air cleaners. In 1976 thecompany started making toner filter elements for photocopiers. In 1979 theheadquarters was moved to a new building in Yokohama and then in 1995 a newheadquarters and research centre were completed, also in Yokohama. A new plant andresearch centre were completed at Sagami in 1996, followed by a second plant atSagami in 2001. In 2001 a subsidiary company Unicat Inc was established.

COMMENT:Tokyo Roki places a strong emphasis on the environmental impact of its operationsand products. This is much in tune with the developing trend in the automotive marketand on the back of this philosophy it has grown rapidly in recent years. It operates atthe high end of the market, developing highly advanced products that are smaller andlighter than conventional components. These meet and advance the technologicaldemands of its customers, the Japanese automobile makers.

Like other Japanese suppliers it has expanded overseas in response to its customers’activities, establishing a plant manufacturing catalytic converters in Suzhou, China, forthe Ford Fiesta and Mazda2, which the two manufacturers make locally.


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TOYOBO

KEY EXECUTIVE:Junji Tsumura, Chairman of the Board

Ryuzo Sakamoto, President and Chief Operating Officer Fumiaki Miyoshi, Head, Industrial Materials Division

Yukio Kawasaki, President, Kureha Ltd

Toyobo was founded in 1882 as a spinning and textile business. Over the next 125years it has continued to adapt to the changing needs of the times, drawing on coretechnologies in polymerization, modification, processing and biotechnology to expandits business fields and develop high performance products.

Its product lines are organized into four speciality business segments: Films andFunctional Polymers, Industrial Materials, and Life Science and Textiles. IndustrialMaterials encompasses the following products:

• functional fibres: airbag fabrics, polyester for tyre cords;• high-performance fibres: the ultra-high molecular weight polyethylene

(Dyneema®) and the polyphenylene polybenzobisoxazole (Zylon®); and• filters, nonwoven fabrics: functional filters for automobiles, indoor, anti-

pollution; solvent adsorption materials and units (the K-Filter™ filtration mediausing activated carbon fibres are used for cabin air filtration as well as solventadsorption); fibre materials for automobile parts.

Toyobo has a wholly owned subsidiary Kureha Ltd, which manufactures automotivefilters (mostly engine air intake filters) using nonwoven staple fabrics in Japan, the USAand Thailand. Kureha was founded in 1960 and joined the Toyobo Corp when its parentKureha Boseki merged with Toyobo in 1966. The Thailand factory was built in 2001, thesame year that Kureha achieved ISO9001 registration. The US operation was establishedtwo years later under the name Toyobo KurehaAmerica Co Ltd in Cincinnati, Ohio.

COMMENT:Toyobo’s automotive filters business is closely tied to its fellow Japanese automobilemakers. It has established filter manufacturing in Thailand and the USA in order tosupport the global expansion of those automobile makers, and foresees that thisexpansion should deliver revenue and earnings growth both at home and overseas.

Toyobo2-8, Dojima Hama 2-chomeKita-ku, Osaka 530-8230Japan Tel: +81-6-6348-3111 Fax: +81-6-6348-3206http://www.toyobo.co.jp

Kureha Ltd255, OkaRitto-shiShigaJapanTel: +81-77-552-1280http://www.kurehatech.co.jp


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As with all the companies in this study, high raw material and fuel prices are puttingpressure on margins. Toyobo is expecting this situation will continue throughout 2008.Nevertheless it is investing in increasing its domestic production capacity forspunbond (nonwoven filament fabrics) by 2 kt a year to 16 kt a year and continues toidentify the automotive sector as a strong priority market.

KEY FIGURES: TOYOBO CO LTD (2003–2007)


2007 2006 2005 2004 2003

Net sales 426.7 401.9 393.7 373.1 376.4

Of which Industrial Materials 74.4 68.9

Cost of sales 335.4 310.7 305.5 291.4 299.5

Operating income 30.4 29.9 28.8 25.9 19.7

Of which Industrial Materials 5.9 5.8

Net income (loss) 13.5 12.6 12.2 8.8 (7)

Research and development expenses 10.4 10.1 9.2 9 8.8


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TOYO ROKI

KEY EXECUTIVES:Hiromitsu Shimada, President and Chief Executive Officer

Atsushi Mamiya, Filtech Inc

Toyo Roki is a privately owned company that was established in Japan in April 1958. Itis involved in the manufacture of automotive filters, air and water purification systems,fuel cell systems and cogeneration filter systems. The company has subsidiaries in theUSA, Thailand, Indonesia, China and Vietnam. In the year ended March 2007 it recordedgroup sales of ¥49.5 billion and employed 2230 people.

Toyo Roki’s automotive products include oil filters and oil filter cartridges, fuel filtersand fuel pump assemblies, filters for automatic transmissions, automotive natural gasfilters, oil coolers and air conditioning air filters.

Located in Findlay, Ohio, USA, Filtech Inc was established in 1989 by Toyo RokiManufacturing Co Ltd. Filtech specializes in serving the automotive industry with state-of-the-art filtration component parts and systems, such as air cleaners, oil filters, automatictransmission filter strainers, replaceable transmission filters and charcoal canisters toreduce volatile hydrocarbon emissions. Production began at the plant in 1990.

In 1994 Toyo Roki set up subsidiaries in Taiwan – China Ocean Enterprise – andThailand. In 2001, two more subsidiaries were established in Indonesia and China. Afurther subsidiary was established in Vietnam in 2006.

COMMENT:With manufacturing capacity throughout Asia and in the USA, Toyo Roki is wellpositioned geographically to serve its customers—original equipment manufacturers.It counts major Japanese automobile makers such as Daihatsu, Honda, Suzuki, Nissanand Yamaha among its customers. The company is unusual in that it has established abroad-based international expansion of its operations without seeking investmentfrom outside investors or joint ventures.

Head Office2396 Futamata, Futamata-choHamamatsu-shi Shizuoka Prefecture, 431-3314 JapanTel: +81-539-260550http://www.toyoroki.co.jp

Filtech Inc2001 Production DrivePO Box 1044Findlay, OH 45839-1044 USATel: +1-419-424-9713Fax: +1-419-424-3352http://www.filtechusa.com


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TOYOTA BOSHOKUToyota Boshoku1-1 Toyoda-cho

Kariya-shiAichi

JapanTel: +81-566-236611

Fax: +81-566-260400http://www.toyota-boshoku.co.jp

KEY EXECUTIVES:Dr Shuhei Toyoda, PresidentJunichi Yoshikawa, ChairmanKiyoshi Furuta, Chairman and Chief Executive Officer, Toyota Boshoku America

Toyota Boshoku Corp was established in October 2004 in a merger between ToyodaBoshoku Corp, Araco Corp (Automotive Interior Division) and Takanichi Co Ltd. Thecorporation was established to be a corporate group supplying comfortableautomobile interiors and world-class automotive filters globally. The corporation islisted on the Tokyo stock exchange although the majority of its shares are held by theToyota Motor Corp.

The company is a major manufacturer of filtration products, including air filters,hydrocarbon absorption filters, oil filters, transmission fluid filters and cabin air filters. Ithas focused its product development on improving performance and reducingenvironmental impact. In particular it offers fully recyclable air filters and oil filterscomposed solely of combustible materials to enable non-polluting disposal. It supplieslargely to original equipment manufacturers.

Looking ahead, automobiles powered by fuel cells may become the next generation ofmotor vehicle, and Toyota Boshoku is developing filters and after-market products forthem. The company sees this as an area in which it can establish world leadership.

The corporation’s origins can be traced back to the early years of the 20th Century whenSakichi Toyoda invented the Toyoda Wooden Hand Loom and the Toyoda Power Loom. Inorder to create his own supply of good quality thread, he decided to set up his ownspinning factory, which he named the Toyoda Automatic Loom Works. In 1918, thisbecame the Toyoda Boshoku Corp.

In the years following Sakichi’s death, Japanese society was increasingly affected by WorldWar Two, and the survival of the company was threatened. During these war years, theChuo Spinning Co was established through a merger with an affiliated company. Thisfirm then merged with Toyota Motor Co Ltd (now the Toyota Motor Corp) andspinning and weaving operations were suspended. When World War Two ended inAugust 1945, former employees of what had been Toyoda Boshoku Corp moved to re-


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establish its spinning and weaving operations. During the war years, the governmenttook possession of most spinning machines and turned them into scrap metal for usein the war-effort, but through repair of the remaining machines, a new chaptercommenced on 15 May 1950, when the Minsei Spinning Co Ltd, was established as aseparate entity from Toyota Motor Co Ltd.

The textiles industry, after managing to overcome the challenges of the post-war years,still experienced extremely difficult times due to the structural recession. To weatherthe downturn in the cotton trade, Minsei Spinning, the predecessor of Toyoda Boshoku,diversified into wool and woollen goods and then to synthetics and on to non-fibres, buteven so, it struggled to extricate itself from a protracted difficult period. Against thisbackground, in June 1967, the Toyota Group decided to support the company, andToyota Motor chairman Taizo Ishida was appointed chairman of Minsei Spinning. At thesame time, the company name was changed from Minsei Spinning to Toyoda Boshoku.

In 1970 Japan reached the pinnacle of the Izanagi boom of 57 months of continuouseconomic expansion. Toyoda Boshoku took advantage of this great opportunity andsteadily restructured its management. At the same time, the company recognized theopportunities that existed in industrial materials, and began producing fabrics forautomobiles and supplying base fabric for automobile seats to Toyota Motor.

In order to weather the recession of the early 1970s, in 1973, Toyoda Boshoku tookover responsibility from Toyota Motor and Nippondenso (now Denso Corp) forproduction of automotive ignition coils. This represented its first step toward theproduction of automotive components. Subsequently, textile technology developed byToyoda Boshoku was used in producing automobile seat fabric. The products weresupplied to seat manufacturers such as Arakawa Auto Body (later Araco) andTakashimaya Nippatsu Industries (later Takanichi) and this facilitated their move intothe automotive interior field. The merger in 2004 brought these three companiestogether into a single organization focused on automotive components.

The company’s main filter manufacturing operation is at its Kariya Factory in Aichi,Japan, which was first established in 1923, but it also manufactures filters at TBMECAPoland SpZoo, which was established in October 2003 in Legnica, Poland. In additionthe company has established four filtration joint ventures with Denso:

• TBDN Tennessee (Toyota Boshoku owns 51%). This company manufactures airfilter elements, cabin air filters, air induction systems, oil filters, and fuel systemfilters and components for the automotive industry. Its customers includemajor automobile manufacturers and aftermarket distributors worldwide. Themodern, 2.2 ha (238 000 square feet) automated facility located on 8.0 ha(21.9 acres) in the growing community of Jackson, Tennessee, has been inoperation since 1989. The company presently employs 512 people andgenerated ¥17.7 billion in sales in the year ending 31 March 2007;


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• Toyota Boshoku Filtration System (Thailand) Co Ltd (Toyota Boshoku owns60%). This company employs 858 people in the manufacture of oil filters;

• Tianjin Toyota BoshokuAutomotive Parts (Toyota Boshoku owns 60%). Thisplant employs 55 staff in China, making air cleaners and oil filters; and

• Toyota Boshoku Foshan Co Ltd (Toyota Boshoku owns 60%). Opened in July2006, this plant makes oil filters and employs 238.

In September 2006 the company announced the establishment of an automotive partsmanufacturing company, Toyota Boshoku Shiga Corp, located in Koka, Japan. Thecompany manufactures automotive filter and power train components as well asvarious interior and exterior components. This new production capacity was neededto meet the increasing demands of Daihatsu’s expansion. It is expected to generatesales worth ¥5 billion in 2008 with 200 employees.

COMMENT:Toyota Boshoku, like Denso Corp, is an independent corporation within the Toyotafamily and the two companies’ filtration activities are closely intertwined with eachother and with their parent, the world’s largest automobile maker. With annual sales of¥76 billion for its filtration and power train components, this is one of the world’slargest automotive filter suppliers. It is understandable that it should focus strongly onthe market for original equipment manufacturers, and its product development ismuch oriented towards meeting future needs for increased passenger comfort andreduced environmental impact. The potential to expand into a stronger aftermarketpresence is there but will require a clearer message on branding (Toyota Boshokuversus Denso), and perhaps the acquisition of an established aftermarket brand mightfacilitate progress in this direction.

KEY FIGURES: TOYOTA BOSHOKU (2006–2008)


2008* 2007 2006

Net sales 1130 1082.7 877.5

Of which Filtration and Powertrain components 76 76.1 68.4

Operating income 46 48.3 33.7

Ordinary income 47 52.1 37.8

Net income 26 30.1 21.1

*Forecast financial statement for year ending 31 March 2008.


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WIX

KEY EXECUTIVES:Terry R. McCormack, Affinia Group’s President and Chief Executive OfficerKeith A. Wilson, President, Under Hood Group, Affinia

Wix designs, manufactures and distributes filtration products for automotive, diesel,agricultural, industrial and speciality filter markets. Its comprehensive product line includesoil, air, cabin interior, fuel, coolant, transmission and hydraulic filters for automobiles, trucksand off-road equipment. It serves the original equipment and aftermarket sectors andclaims to be the aftermarket leader in North America. Wix sells its filters under the Wix,National Automotive Parts Association and Carquest brands in North America. It also sellsfilters under the Kralinator brand in Canada and the Filtron brand in Europe.

Wix was founded by John Doane Wicks and Paul G. Crawshaw in 1939, making sock-covered refills for popular oil filters. The company started making can-based replace -ment filters for passenger automobiles in 1944. Ten years later Wix introduced thecompany’s patented spin-on oil filter. As early as 1959, Wix established an associate plantin New Zealand. In 1961, the Allen Plant in Gastonia, North Carolina, USA, was opened. In1965 Wix received approval from the National Automotive Parts Association (NAPA) tobecome the supplier of filter products under the NAPA brand name. In 1969 Wixopened its Dixon plant, again in Gastonia, and in 1977 an additional facility wasestablished in Dillon, South Carolina. In 1979, Wix Corp was merged into Dana Corp.

In 1982 Dana launched its Wix de Venezuela filter operation. A further plant wasopened in Venezuela in 1988, the same year as a joint venture was established in China,creating Tianjin-Wix. A further plant was opened in China in 1990. In 1996, Wixacquired a Canadian filter manufacturing facility and expanded its capabilities in fuelfilter manufacturing by buying Flexon Inc of Ferndale, Michigan, USA. Wix also movedinto cabin air filters this year, forming a joint venture with Helsa-Werke of Germanyand starting production in its Dillon plant. In 1997, Wix established a joint venturewith Filtron in Gostyn, Poland, and opened a plant. In 1998, Delphi’s facility inSouthampton, UK, was purchased as a base for Wix’s European operations.

In 2004 The Affinia Group (established by The Cypress Group LLC) acquired substantiallyall of Dana Corp’s aftermarket business operations. The acquisition was completed on 30November 2004, for a purchase price of US$1.0 billion. Affinia operates in two divisions:the Under Vehicle Group (brakes and chassis) and the Under Hood Group (filters).

Wix Filtration Products1 WixWayGastonia, NC 28054USATel: +1-704-864-6711http://www.wixfilters.com

Affinia Group Inc 1101 Technology Drive Ann Arbor, MI 48108 USATel: +1-734-827-5400http://www.affiniagroup.com


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Affinia immediately set about restructuring the business, announcing the closure of theUK facility in Southampton in December 2005. Further closures were announcedacross Affinia’s activities, including the Cambridge, Ontario, facility in Canada.

In April 2007 Affinia Group started production at the Wix-Filtron manufacturing anddistribution facility in Krasilov, Ukraine, and this unit was responsible for sales worthUS$1 million in the second quarter of 2007, rising to US$2 million in the third quarter.The 0.6 ha (65 000 square feet) facility is the company’s second operation in EasternEurope, joining Affinia’s Wix-Filtron manufacturing and distribution plant in Poland.

Wix is also expanding its presence in Latin America with the construction of a WixFiltration manufacturing and distribution facility in Mexico. The 2.9 ha (315 000 squarefeet) facility was built in the rapidly growing Santa Maria Industrial Park in Ramos Arizpe,Coahuila, 290 km (180 miles) south of Laredo, Texas. The facility opened during thethird quarter 2007, with production beginning in October 2007. The facility will initiallymanufacture and distribute a variety of filtration products. This is Affinia’s third filtrationmanufacturing facility in Latin America, joining existing plants in Brazil and Venezuela.

COMMENT:The Affinia Group assumed significant long-term debt when it acquired the troubledDana Corp’s aftermarket business in 2004. This saddles the business with a significantannual interest expense to fund from its operating income. However, the filtrationbusiness is developing positively with increased sales volumes and revenues in EasternEurope (helped by the relative weakness of the dollar) and Latin America, andincreased production in lower cost countries keeping the cost of sales down. Saleshave dropped in the brake and chassis business and this has triggered some significantplant closures and reorganization of manufacturing facilities.

Wix continues to have a high reputation in the US filter aftermarket, offering acomplete range of products for light and heavy duties, heavily marketed through thecompany’s high profile involvement in US motor sport. The company has a name forhigh quality and maintains excellent relations with its key customers such as theNational Automotive Parts Association and Carquest, with the former accounting for22% of Affinia’s sales in 2006. With steady growth predicted for the aftermarket, thebusiness should return a profit soon, although there are risks associated with the highexposure to debt, the high reliance on two or three large aftermarket resellers and therelatively small access to markets outside North America.

Wix’s cabin air filter activities may be affected by the announcement in November2007 that Mann + Hummel has acquired Helsa-Automotive, Wix’s partner in its jointventure—Wix-Helsa Filtration Technologies Inc.



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KEY FIGURES: AFFINIA GROUP INC (2005–2007)



2007 2006 2007 2006

Net sales 541 548 1617 1658

Of which filtration products 186 176 553 527

Cost of sales 440 450 1325 1369

Gross profit 101 98 292 289

Operating profit 23 22 52 44

Interest expense 15 15 45 44

Net income (loss) 4 12 5 4


2006 2005

Net sales 2160 2132

Of which filtration products 689 661

Cost of sales 1784 1837

Gross profit 376 295

Operating profit 44 13

Interest expense 59 55

Net income (loss) (5) (30)


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GlossaryACID RAINRain or any other form of precipitation that is unusually acidic. It has harmful effects onplants, aquatic animals and buildings. Acid rain is mostly caused by human emissions ofsulphur and nitrogen compounds that react in the atmosphere to produce acids.

ACTIVATED CARBONActivated carbon is a form of carbon with a highly porous structure. This structuregives the carbon a large surface area which allows the carbon to adsorb a wide rangeof compounds. It can be used in various forms including powder, granules and fibres orextruded into specific shapes.

AIRLAIDA nonwoven material produced by dispersing fibres into a fast moving air stream andthen condensing them onto a moving screen by means of pressure or vacuum.

ALTFAHRZEUGVERORDNUNGSee Environmental standards and legislation.

AMORTIZATION/DEPRECIATIONAmortization is writing off an intangible asset investment over the projected life of theassets. Contrast to depreciation where the asset written off is tangible.

ANTI-DRAINBACK VALVEA valve built into an oil filter housing that prevents oil from draining back into anengine’s lubrication system from the oil filter.

ASSET IMPAIRMENT CHARGESThe amount by which stated capital is reduced by distributions and losses.

ASSOCIATION OF SOUTHEAST ASIAN NATIONSThe Association of Southeast Asian Nations (ASEAN) was established on 8 August1967 in Bangkok by the five original Member Countries—Indonesia, Malaysia, ThePhilippines, Singapore and Thailand. Brunei Darussalam joined on 8 January 1984,Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30April 1999. The ASEAN region has a population of about 500 million, a total area of 4.5million square kilometres, a combined gross domestic product of almost US$700billion, and a total trade of about US$ 850 billion.

BILLIONIn this report, one billion is taken to mean one thousand million (109); see also, trillion.

BLOCK-MOUNTED FILTERA filter permanently mounted in a housing on the engine block. Only the filter elementis replaceable.


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BRAND EQUITYAn intangible asset of added value that results from the favourable image, impressionsof differentiation and the strength of consumer attachment to a company name, brand-name or trademark.

CABIN AIR FILTERA filter fitted to the car’s ventilation system to trap pollen, bacteria, dust and exhaustgases in the air stream.

CALIFORNIA AIR RESOURCES BOARDSee Environmental standards and legislation.

CANNINGThe process of mounting a catalyst within a catalytic converter assembly.

CARTRIDGE FILTERFilter design in which the filter element is removable and replaceable. The filter can ispermanently installed.

CASH FLOWThe balance of the inflow and outflow of funds.

CE MARK/CE MARKINGA declaration on manufactured products sold in the European Union (EU) that theitem meets all the essential requirements of all applicable EU Directives.

CELLULOSE MEDIAPaper-based filtration media, produced from natural fibres such as cotton or wood pulp.

CLEAN AIR ACT (USA)See Environmental standards and legislation and http://www.epa.gov/air/caa

COMBI-FILTERA cabin-air filter that combines a physical particle filter with an active component suchas activated carbon, which can absorb gaseous contaminants and reduce odours.

COMMON RAILA high-pressure direct fuel injection system widely used in modern diesel-enginepassenger vehicles.

COMPOSITE NONWOVENNonwoven containing more than one fibrous material.

CORDIERITECordierite is a magnesium alumina silicate ceramic used as a substrate for dieselparticulate filters. This material’s most important feature is that it has a low coefficient


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of thermal expansion and excellent resistance to thermal shock. It is relatively cheapand can be made in high volume through extrusion or dry-pressing methods.

DENIER/DECITEX/TEXThe mass in grams of 9000 m of a fibre, filament or yarn. Note that the internationallypreferred system of expressing linear density (mass per unit length) is the tex system, thebasic unit of which is the tex—the mass in grams of 1 km of the product. A convenient sub-multiple for continuous filament yarns and individual fibres is the decigram per kilometre,designated decitex (dtex). The linear density of slivers or rovings and of continuous filamentis commonly described in kilograms per kilometre, designated kilotex (ktex).

DEPRECIATION/AMORTIZATIONDepreciation is writing off a tangible asset investment over the projected life of theassets. Contrast to amortization where the asset written off is intangible.

DIESEL PARTICULATE FILTERFilter fitted to the exhaust system of diesel-engine vehicles to reduce emissions ofparticulate matter from the exhaust of the engine.

DRYLAIDDrylaid nonwovens are fabricated by airlaying (see Airlaid) and/or carding. Carding is amechanical process in which fibres are combed into a web by a carding machine, whichis a rotating drum or series of drums covered in fine wires or teeth.

EBITEarnings before interest and tax. This is all profits, operating and non-operating, beforededucting interest and income taxes.

EBITDAEarnings before interest, taxes, depreciation and amortization. EBITDA can be used toanalyse the profitability between companies and industries, because it eliminates theeffects of financing and accounting decisions.

ELECTRETAir filtration media with an electrostatic charge that helps collect dust particles. Thecharge enhances the media’s ability to trap small particles.

END-OF-LIFEVEHICLE REGULATIONS (ALTFAHRZEUGVERORDNUNG)See Environmental standards and legislation.

ENVIRONMENTAL STANDARDS AND LEGISLATIONIt is beyond the scope of this report to attempt to describe the many and detailedstandards that have been and are due to be enacted around the world. As a startingpoint for a comprehensive treatment of global emissions regulations, including detailsof the emissions levels permitted and the timetable for enforcement of the standards,


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readers are referred to the following Internet resources: http://www.dieselnet.com/standards; http://www.epa.gov/air/caa

EURO 4/5/6See Environmental standards and legislation.

FORTUNE 500 An annual list of the five hundred largest US industrial corporations, as measured bygross income (trademark in the USA).

FUEL-BORNE CATALYST SYSTEMDiesel-particulate filter system in which the catalyst for filter regeneration is added tothe diesel fuel by a dosing system before injection into the engine.

FULL-FLOW FILTERAn oil-filter which acts on the main circulatory path of an engine lubrication system,filtering all the lubricant.

GEOSYNTHETICSGeosynthetics are sheet polymeric materials used in civil engineering. They are used ingeotechnical structures for functions such as separation, reinforcement, drainage,filtration, liquid containment and as gas barriers.

HYDROENTANGLED FABRIC (SPUNLACED FABRIC)A nonwoven fabric made from a fibre web (also called a batt), in which entanglementby high-pressure water jets provides the bond.

INTANGIBLE/TANGIBLE ASSETSNet tangible assets may be defined as total assets less so-called “intangibles” (such asgoodwill and patents), current liabilities and funded debt.

INTERNATIONAL ORGANIZATION OF MOTORVEHICLE MANUFACTURERSSee Organisation Internationale des Constructeurs d’Automobiles

LEVERAGED BUYOUTTakeover of a company or controlling interest using a significant amount of borrowedmoney, usually 70% or more of the total purchase price.

MELTBLOWNNonwoven media produced by melting and drawing polymeric fibres into fine strandsin a high velocity air stream and forming a continuous web of the fibres.

MELTSPINNINGThe conversion of a molten polymer into filaments by extrusion and subsequentcooling of the extrudate.


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MELTSPUNMan-made filaments produced by meltspinning.

MONOLITHSMonoliths (or substrates) are the core elements of diesel particulate filters or catalyticconverters. They are generally impregnated with a catalytic washcoat.

NANOFIBRENanofibre is a term used for fibres with diameters less than 0.5 µm. Typical nanofibreshave a diameter between 50 and 500 nm.

NASDAQ National Association of Securities Dealers Automated Quotations—a computerizedsystem for trading in securities.

NATIONAL AUTOMOTIVE PARTS ASSOCIATIONThe National Automotive Parts Association (NAPA) is a massive chain supplyingautomobile parts in the USA. There are more than 6000 stores in the group (althoughthe stores themselves are owned by the individuals who run them) and it suppliesparts carrying the NAPA brand as well as those carrying the brand of the original partsmanufacturer. http://www.napaonline.com

NEEDLEFELTAlso known as needlepunched fabric; needled fabric; and needlebonded fabric). Anonwoven structure formed by the mechanical bonding of a fibre web or batt by needling.

NEEDLINGThe use of barbed needles mounted in a needleloom to entangle a fibre web or battby mechanical reorientation of some of the fibre within its structure.

NONWOVEN MEDIAA manufactured sheet or web of fibres, bonded by friction, and/or cohesion and/oradhesion, excluding paper and products which are woven, knitted, tufted, stitch-bondedincorporating binding yarns or filaments, or felted by wet-milling, whether or notadditionally needled. The fibres may be of natural or man-made origin.

ORIGINAL EQUIPMENT SPARESSpare parts fitted by original equipment manufacturers when servicing vehicles.

ORGANISATION INTERNATIONALE DES CONSTRUCTEURS D’AUTOMOBILESThe Organisation Internationale des Constructeurs d’Automobiles (OICA) is theglobal body that brings together the automotive trade associations of more than 40automobile manufacturing nations. OICA, 4, rue de Berri, F-75008 Paris, France.Tel:+33-1-4359-0013. Fax: +33-1-4563-8441. E-mail: [email protected]; http://www.oica.net


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The association gathers global production statistics by surveying its memberassociations and collating the results. These are available on the Internet:http://oica.net/category/production-statistics

OTC/OTC BULLETIN BOARDThe OTC Bulletin Board (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equitysecurities. An OTC equity security generally is any equity that is not listed or tradedon NASDAQ or a national securities exchange.

OXIDES OF NITROGENThe various oxides of nitrogen (denoted NOx). These compounds are by-products ofthe combustion processes in internal combustion engines, especially diesel engines.Nitrogen oxides are greenhouse gases and also cause local environmental problemssuch as smog and acid rain.

PARTICULATE MATTERParticulate matter is the generic term used for a type of air pollution that consists ofcomplicated and varying mixtures of particles suspended in the air. Highconcentrations and/or specific types of particles have been found to present a seriousdanger to human health.

PRIVATE LABELPrivate label accounts refer to resellers who buy parts carrying their own brand orlabel from the original manufacturer.

PULPThe basic raw material for producing paper and board, derived through a cookingprocess of wood chips, cotton or other source of cellulose with water and otherrequired chemicals.

RESIN-BONDED NONWOVENSA nonwovens process that involves carding fibres, forming a web and bonding withresins, such as acrylics or ethylene vinyl acetate. The resins bond the fibres together.

SELECTIVE CATALYTIC REDUCTIONSelective catalytic reduction is a means of converting oxides of nitrogen with the aidof a catalyst into nitrogen and water. A gaseous reductant, typically anhydrousammonia, aqueous ammonia or urea, is added to a stream of flue or exhaust gas and isabsorbed onto a catalyst. Carbon dioxide is a reaction product when urea is used asthe reductant.

SILICON CARBIDEA ceramic compound of silicon and carbon, silicon carbide is used as the filter elementin some diesel particulate filters.


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SINTERINGThe term sintering describes the process of forming solid items from powders by heattreatment. It is typically applied to metals and ceramics.

SPIN-ON FILTERA disposable self-contained filter unit connected to the fluid system to be filtered by asimple screw thread.

SPUNLACENonwoven media produced by using high-speed jets of water to strike a web so thatthe fibres knot about one another (also known as hydroentanglement).

SPUNLAID FABRICA nonwoven fabric made by the extrusion of filaments that are then laid down in theform of a web and subsequently bonded. Also known as spunbond.

SUBSTRATESSubstrates (or monoliths) are the core elements of diesel particulate filters or catalyticconverters. They are generally impregnated with a catalytic washcoat.

TANGIBLE/INTANGIBLE ASSETSNet tangible assets may be defined as total assets less so-called “intangibles” (such asgoodwill and patents), current liabilities and funded debt.

TEXSee denier/decitex/tex.

THERMAL BONDINGA process to bind a structure by heat to soften one or more of the components.

TIER 1/TIER 2/TIER 3 SUPPLIERSThe supply chain for a vehicle manufacturer is broadly split into three tiers or levels: • Tier 1 suppliers are companies that integrate whole systems for direct supply to

a vehicle manufacturer. These include global operators that are increasinglyproviding a high level of research and development, and product development aspart of the integrated service they provide. At a local level they also supplyvalue-added sub-systems or assemblies;

• Tier 2 suppliers are companies that supply component parts or support servicesto the first tier suppliers for integration into the systems supplied to vehiclemanufacturers. These can be nationally based suppliers or global operators;

• Tier 3 companies supply raw materials for the supply chain or more genericengineering components and services. The raw material suppliers are frequentlylarger multi-national companies reflecting the world market for such materials.The more general engineering component requirements tend to be smaller andlocal operations that will be supplying their products for a variety of uses.


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TRILLIONIn this report one trillion is taken to mean one million million (1012); see also, billion.

UREAA chemical compound of carbon, oxygen, nitrogen and hydrogen also calledDiaminomethanal and carbamide. It is used to reduce nitrogen oxides in selectivecatalytic reduction systems.

US ENVIRONMENTAL PROTECTION AGENCYSee Environmental standards and legislation.

VALVEBODY FILTERA filter located within the valvebody of an automotive transmission system.

WASHCOATThe coating, containing the active catalyst material, applied to the substrate ormonolith in a catalytic converter or diesel particulate filter.

WEBA sheet of fibres delivered by a card (also referred to as a batt).

WETLAID NONWOVENSNonwovens produced in a process similar to paper making. The nonwoven web isproduced by filtering an aqueous suspension of fibres onto a screen conveyor belt orperforated drum. Many wetlaid nonwovens are made with wood pulp or other naturalfibres blended with synthetic fibres or fibre glass.

ZEOLITESMicroporous minerals with excellent adsorption properties.


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COMPANY INDEX3M . . . . . . . . . . . . . . . . . . . . . . . 9, 11–12

AACDelco . . . . . . . . . . . . . . . . . 4, 13–14Aciers et Outillage Peugeot . . . . . . . . 56ADC Automotive Development . . . . . 74ADC Fahrzeugtechnik . . . . . . . . . . . . 73Advance Auto Parts . . . . . . . . . . . . . 109Advanced Diesel Particulate Filters . 44, 45Advanced Filtration Concepts . . . . . . 97Affinia . . . . . . . . . . . . . . . . . 7, 134–136Ahlstrom . . . . . . . . . . . . . . . . 15–18, 59Allied Corp . . . . . . . . . . . . . . . . . . . . . 64AlliedSignal . . . . . . . . . . . . . . . . . . 64, 118Alps Manufacturing . . . . . . . . . . . 5, 19Amsoil . . . . . . . . . . . . . . . . . . . . . 20–21Araco . . . . . . . . . . . . . . . . . . . . . 131, 132ArvinMerito . . . . . . . . . . . 29, 97, 110, 124Asahi MFG . . . . . . . . . . . . . . . . . . . . . . 19ASC Industries . . . . . . . . . . . . . . . . . . . 32Association of Southeast Asian Nations . . . . . . . . . . . . . . . . 5, 137

AutoZone. . . . . . . . . . . . . . . . . . . . 31, 33Avgol . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Avtovaz . . . . . . . . . . . . . . . . . . . . . . . 3, 55Awa Paper . . . . . . . . . . . . . . . . . 22–23

BBaldwin Filters . . . . . . . . . . . . . . . . . . . 34Banner Filters . . . . . . . . . . . . . . . . . . . 105BASF Catalysts/Chemicals . . . 24–25BBA . . . . . . . . . . . . . . . . . . . . . . . . . 58, 59Behr . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Beijing Shoutuo Filters . . . . . . . . . . . . . . 5Bekaert . . . . . . . . . . . . . . . . . . . . 26–27Bendix . . . . . . . . . . . . . . . . . . . . . . 64, 110Bengbu Filter Equipment . . . . . . . . . . . . 5Berkshire Hathaway . . . . . . . . . . . . 82, 84Bertrand Faure . . . . . . . . . . . . . . . . . . . 56Bidim . . . . . . . . . . . . . . . . . . . . . . . . . . 58BMW . . . . . . . . . . . . . . . . . . . . . . . . 3, 55Bosch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 28–30, 44, 45, 74, 79, 97, 109, 110, 111Buick . . . . . . . . . . . . . . . . . . . . . . . 14, 110

CCadillac . . . . . . . . . . . . . . . . . . . . . . . 110California Environmental ProtectionAgency . . . . . . . . . . . . . . . . . . . . . . . 107

Camfil-Farr . . . . . . . . . . . . . . . . . . . . . 105Carlyle Group . . . . . . . . . . . . . . . . 31, 32Carquest . . . . . . . . . . . . . . 4, 31, 134, 135Carter-Day . . . . . . . . . . . . . . . . . . . . . . 48Caterpillar . . . . . . . . . . . . . . . . . . . . . . 48Centrax . . . . . . . . . . . . . . . . . . . . . . . 107Ceramics Suzhou . . . . . . . . . . . . . . . . 103Champion Ignition . . . . . . . . . . . . . . . . 14Champion Laboratories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 7, 31–33, 111Chevrolet . . . . . . . . . . . . . . . . . . . . . . . 14Chevron Texaco . . . . . . . . . . . . . . . . . 109China Internal Combustion EngineIndustry Association . . . . . . . . . . . . . . 5

China Ocean Enterprise . . . . . . . . . . 130Chrysler . . . . . . . . . . . . . . . . . 3, 4, 13, 110CIR . . . . . . . . . . . . . . . . . . . . . . . . . . . 117Citroën . . . . . . . . . . . . . 45, 55, 56, 96, 123Clarcor . . . . . . . . . . . . . . . . . . . 7, 34–36Clark Filters . . . . . . . . . . . . . . . . . . . . . 34Colonial Board . . . . . . . . . . . . . . . . . . . 90Coopers Filters . . . . . . . . . . . . . . . . . 118Corning . . . . . . . . . . . . . . . . . . . . 37–40Corovin . . . . . . . . . . . . . . . . . . . . . . . . 58Corteco . . . . . . . . . . . . . . . . . . . . . 66, 67Cummins . . . . . . . . . . . . . . . . 38, 41–43Cuno . . . . . . . . . . . . . . . . . . . . . . . . 11, 12Cypress Group . . . . . . . . . . . . . . . . . 134

DDaihatsu . . . . . . . . . . . . . . . . . 3, 130, 133Daimler/DaimlerChrysler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 52, 55, 74, 93, 123Dainippon Ink & Chemicals . . . . . . . . . 80Dana . . . . . . . . . . . . . . . . . . . . . . 134, 135Day Division . . . . . . . . . . . . . . . . . . . . . 48Delphi . . . . . . . . . . . . . . . . . . . . . . . . 134Deluxe Filter . . . . . . . . . . . . . . . . . . . . 42Denso . . . . . . . 7, 29, 44–46, 79, 132, 133DES Diesel Exhaust System . . . . . . . . . 96Detroit Diesel . . . . . . . . . . . . . . . . . . . 38Dexter . . . . . . . . . . . . . . . . . . . . . . . . . 15Diesel Exhaust Systems . . . . . . . 73, 74, 75


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Dodge . . . . . . . . . . . . . . . . . . . . . . . . 110domnick hunter . . . . . . . . . . . . . . . . . 106Donaldson . . . . . . . . . . . . 21, 47–49, 77Donghyun Mahle Filter Systems. . . . . . 93DongWoo Mann + Hummel . . . . . . . . 97Dow Jones Industrial Average . . . 11, 63, 83DuPont . . . . . . . . . . . . . . . . . . . 9, 50–51

EEberspächer . . . . . . . . . . . . . 52–53, 74Emitec . . . . . . . . . . . . . . . . . . 54–55, 75Engelhard . . . . . . . . . . . . . . . . . . . . 24, 25Environmental Protection Agency. . . 39, 43, 107Equipements et Composants pourl’Industrie Automobile . . . . . . . . . . . . 56

Esco/Esco Technologies . . . . . . . 60, 61, 62Eurofilter . . . . . . . . . . . . . . . . . . . . 31, 32Euronext . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Europarts Industria de Autopecas . . . 64, 118

FFabriano Filter Media . . . . . . . . . . . . . . 16Facet Enterprises . . . . . . . . . . . . . . . . 110Faurecia . . . . . . . . . . . . . . . . . . . 56–57Federal Trade Commission . . . . . . . . 110Fiaam Filter . . . . . . . . . . . . . . . . . 117, 118Fiat . . . . . . . . . . . . . . . . . . . . 3, 45, 55, 123FiberMark . . . . . . . . . . . . . . . . . . . 15, 100FiberMark Gessner . . . . . . . . . . . . . . 100Fiberweb . . . . . . . . . . . . . . . . . . . 58–59Filap . . . . . . . . . . . . . . . . . . . . . . . . . . . 97Filtech . . . . . . . . . . . . . . . . . . . . . . . . 130Filtertek . . . . . . . . . . . . . . . . . 60–62, 81Filterwerk Mann + Hummel . . . . . . 96, 97Filtrauto . . . . . . . . . . . . . . . . . . . 117, 118Filtron . . . . . . . . . . . . . . . . . . . . . 134, 135Filtros Mann . . . . . . . . . . . . . . . . . . . . . 97Flexible Lamps . . . . . . . . . . . . . . . . . . . 32Flexon . . . . . . . . . . . . . . . . . . . . . . . . 134Ford . . . 3, 4, 13, 45, 55, 56, 109, 119, 123, 127Fox River Paper . . . . . . . . . . . . . . . . . 101Fram . . . . . . . . . . . . . . . . 4, 7, 31, 63–65. . . . 108, 110, 111, 112, 113, 117, 118, 119

Freudenberg & Vilene Filter(Changchun) . . . . . . . . . . . . . . . . . 80, 81

Freudenberg & Vilene Interlinings (Nantong) . . . . . . . . . . . . 81

Freudenberg & Vilene International . . . 80

Freudenberg & Vilene Nonwovens(Suzhou) . . . . . . . . . . . . . . . . . . . . . . . 81

Freudenberg & Vilene Nonwovens(Taiwan) . . . . . . . . . . . . . . . . . . . . . . . 80

Freudenberg Nonwovens . . . . 66–68Freudenberg Vitech . . . . . . . . . . . . . . . 81Freudenberg Vitech Ltd Partnership . . 81Fuji . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

GGardner . . . . . . . . . . . . . . . . . . . . . . . 110Geiger Technic . . . . . . . . . . . . . . . . . . . 97General Motors . . . 3, 4, 13, 14, 45, 110, 123General Signal . . . . . . . . . . . . . . . . . . 122GKN . . . . . . . . . . . . . . . . . . . . . . . . . . 54Guardian/United Engine Life Filtration . . . 34GUD Holdings . . . . . . . . . 97, 112–114

HH.J. Schulte . . . . . . . . . . . . . . . . . . . . . . 74H.W. Johns Manufacturing . . . . . . . . . . 83H.W. Johns Manville . . . . . . . . . . . . . . 83Hastings Filters . . . . . . . . . . . . . . . . . . 34Hastings Manufacturing . . . . . . . . . . . . 34Helsa-Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 69–70, 98, 134, 135

Hengst . . . . . . . . . . . . . . . . . . . 4, 71–72Hino Motors . . . . . . . . . . . . . . . . . . . 103HJS . . . . . . . . . . . . . . . . . . 29, 73–75, 96Hoechst . . . . . . . . . . . . . . . . . . . . . . . . 84Hollingsworth & Vose . . . . . . . . 76–77Holvis . . . . . . . . . . . . . . . . . . . . . . . . . . 58Honda . . . . . . . . . . . . . . 3, 13, 55, 123, 130Honeywell . . . . . . . . 7, 63–65, 108, 119HRS Textiles . . . . . . . . . . . . . . . . . . . . . 15Hupmobile . . . . . . . . . . . . . . . . . . . . . 110Hyundai . . . . . . . . . . . . . . . . . . . . 3, 38, 55

IIbiden . . . . . . . . . . . . . . . . . . . 56, 78–79International Organization of MotorVehicle Manufacturers . . . . . . 1, 2, 3, 140

ITW . . . . . . . . . . . . . . . . . . . . . . . . 60, 62

JJaguar . . . . . . . . . . . . . . . . . . . . . . . . . 123Japan Vilene . . . . . . . . . . . . . . 67, 80–81Johns Manville . . . . . . . . . . . . 82–84, 90Johnson Matthey . . . . . . . . . . . . . . . . . 74Jordan . . . . . . . . . . . . . . . . . . . . . . . . . 110


Automotive Filters

147

KK&N Filters . . . . . . . . . . . . . . . 8, 85–86Kia . . . . . . . . . . . . . . . . . . . . . . . . 3, 38, 39Kimberly-Clark . . . . . . . . . . 87–88, 101Kirloskar Knecht Filters . . . . . . . . . . . . 93Kleen Pak Manufacturing . . . . . . . . . . . 32Knecht Duroplast Sistemas de Filtración . . . . . . . . . . . . . . . . . . . . 93

Knecht Filterwerk . . . . . . . . . . . . . . . . 92Knecht Filterwerke . . . . . . . . . . . . . 92, 93Korea Filtertek . . . . . . . . . . . . . . . . . . . 81Korea Vilene . . . . . . . . . . . . . . . . . . . . . 81Kureha . . . . . . . . . . . . . . . . . . . . . . . . 128Kureha Boseki . . . . . . . . . . . . . . . . . . 128Kuss . . . . . . . . . . . . . . . . . . . . . . . . 41, 42

LLahnstein . . . . . . . . . . . . . . . . . . 100, 101Lancia . . . . . . . . . . . . . . . . . . . . . . . . . 123Lantor . . . . . . . . . . . . . . . . . . . . . . . 15, 17LOF Glass Fibers . . . . . . . . . . . . . . . . . 83Luber-finer . . . . . . . . . . . . . . . . . . . 31, 32Lydall . . . . . . . . . . . . . . . . . . . . . . 89–91MM & J Diesel Locomotive Filter . . . . . . 34Mack Trucks . . . . . . . . . . . . . . . . . . . . 107Mahle . . . . . . . . . . . . . . . . . 4, 5, 7, 92–94MAN . . . . . . . . . . . . . . . . . . . 55, 140, 141Mann + Hummel . . . . . 4, 5, 7, 29, 69, 70. . . . . . . . . . . . . 95–99, 109, 110, 111, 135

Manville Corp . . . . . . . . . . . . . . . . . 83, 84Manville Covering . . . . . . . . . . . . . . . . 83Manville Personal Injury and PropertyDamage Settlement Trusts . . . . . . . . . 83

Mark IV . . . . . . . . . . . . . . . . . . . . . . . 110Maxwell Chalmers . . . . . . . . . . . . . . . 109Mazda . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Mercedes-Benz . . . . . . . . . . . . 56, 72, 123MHB Filter India . . . . . . . . . . . . . . . . . . 97Minnesota Mining & Manufacturing . . . 11Minsei Spinning . . . . . . . . . . . . . . . . . 132Mitsubishi . . . . . . . . . . . . . . . . . . . . . . . . 3Moon . . . . . . . . . . . . . . . . . . . . . . . . . 110Motor Improvements . . . . . . . . . 109, 110Motorcraft . . . . . . . . . . . . . . . . . . . 4, 109Mukand . . . . . . . . . . . . . . . . . . . . . . . . 27

NNational Automotive Parts Association(NAPA) . . . . . . . . . . . . 4, 31, 134, 135, 141NE ChemCat Corp . . . . . . . . . . . . . . . 25Neapco . . . . . . . . . . . . . . . . . . . . . . . . 32Neenah Gessner . . . . . . . . . . 100–101Neenah Paper . . . . . . . . . 87, 100–101Nelson Industries . . . . . . . . . . . . . . . . . 42NGK Insulators . . . . . . . . . . . 102–104Nippon Micro Filter . . . . . . . . . . . . . . . . 5Nippondenso . . . . . . . . . . . . . . . . 45, 132Nissan . . . . . . . . . . . . 3, 5, 93, 94, 123, 130Noritake . . . . . . . . . . . . . . . . . . . . . . . 103NuTech Filter . . . . . . . . . . . . . . . . . . . 105Nylon Filter . . . . . . . . . . . . . . . . . . . . . 61OOakland . . . . . . . . . . . . . . . . . . . . . . . 110Oberg International . . . . . . . . . . . . . . 105Opel . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Organisation Internationale desConstructeurs d’Automobiles . . . 140, 141

Orlandi . . . . . . . . . . . . . . . . . . . . . . . . . 16Oyama Chemical . . . . . . . . . . . . . . . . . 81

PPaccar . . . . . . . . . . . . . . . . . . . . . . . . . 107Pacific Giken . . . . . . . . . . . . . . . . . . . . . 80Parker Hannifin . . . . . . . . . . 105–106PBR . . . . . . . . . . . . . . . . . . . . . . . . . . 118Peerless . . . . . . . . . . . . . . . . . . . . . . . 110Pennzoil . . . . . . . . . . . . . . . . . . . . . . . 110Pep Boys . . . . . . . . . . . . . . . . . . . . . . . 109Peugeot . . . . . 3, 45, 55, 56, 57, 78, 96, 123Peugeot Cycles . . . . . . . . . . . . . . . . . . 56Pierce Arrow . . . . . . . . . . . . . . . . . . . 110Pioneer . . . . . . . . . . . . . . . . . . . . . . 22, 32Piston Ring . . . . . . . . . . . . . . . . . . . . . 121Plasta Sonneberg . . . . . . . . . . . . . . . . . 97Porsche . . . . . . . . . . . . . . . . . . . . . . . . 55PSA . . . . . . . . . . . . . . 3, 45, 55, 56, 96, 123Puradyn . . . . . . . . . . . . . . . . . 107–108Purem . . . . . . . . . . . . . . . . . . . . 52, 53, 74Purolator . . . 4, 7, 29, 70, 97, 98, 109–111Pyroil . . . . . . . . . . . . . . . . . . . . . . . . . . 32

QQuaker State . . . . . . . . . . . . . . . . . . . 109RRacor . . . . . . . . . . . . . . . . . . . . . 105, 106


Automotive Filters

148

Reemay. . . . . . . . . . . . . . . . . . . . . . . . . 58Renault . . . . . . . . . . . . . . . . . . . . 3, 52, 55Rhodia . . . . . . . . . . . . . . . . . . . . . . . . . 56Ricardo. . . . . . . . . . . . . . . . . . . . . . . . . 75Rising Sun . . . . . . . . . . . . . . . . . . . . . . . 19Ryco . . . . . . . . . . . . . . . . . . 97, 112–114

SSaint-Gobain . . . . . . . . . . . . . . . . . . . . . 78Schawk . . . . . . . . . . . . . . . . . . . . . . . . . 61Schmidt/Donzdorf Muffler . . . . . . . . . . 74Schoeller Metternich Beteiligungen . . . . . . . . . . . . . . . . . . . . . . . . . . 69, 70, 98Schweizerische Seidengazefabrik . . . . 116Scott Paper . . . . . . . . . . . . . . . . . . . . . 87Sealed Power . . . . . . . . . . . . . . . . . . . 121Sefar . . . . . . . . . . . . . . . . . . . . 115–116Seymour Filter . . . . . . . . . . . . . . . . . . . 41Shell . . . . . . . . . . . . . . . . . . . . . . 7, 19, 109Showa Shell . . . . . . . . . . . . . . . . . . . . . 19Siemens . . . . . . . . . . . . . . . . . . . 54, 93, 94Sinfa . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Snow Filtration . . . . . . . . . . . . . . . . . . . 58Sogefi . . . . . . . . . . . . . 4, 7, 64, 117–120Sommer Allibert . . . . . . . . . . . . . . . . . . 57Somos . . . . . . . . . . . . . . . . . . . . . . . . . 97Soparis . . . . . . . . . . . . . . . . . . . . . . . . . 93SPIS . . . . . . . . . . . . . . . . . . . . . . . . . . 118SPX Filtran . . . . . . . . . . . . . . 121–122Stirling . . . . . . . . . . . . . . . . . . . . . . . . . 42Stone Filter . . . . . . . . . . . . . . . . . . . . . 34Stone Industrial . . . . . . . . . . . . . . . . . . 34STP . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Studebaker . . . . . . . . . . . . . . . . . . . . . 110Superior Nonwovens . . . . . . . . . . . . . . 58Suzuki . . . . . . . . . . . . . . . . . . . . . . . 3, 130TTakanichi . . . . . . . . . . . . . . . . . . . 131, 132Takashimaya Nippatsu Industries . . . . 132TBDN Tennessee . . . . . . . . . . . . . 44, 132TBMECA Poland . . . . . . . . . . . . . . . . 132Técafiltres . . . . . . . . . . . . . . . . . . . . . . . 93Tenneco . . . . . . . . . . . . . . . . . . 123–125Tennex . . . . . . . . . . . . . . . . . . . . . 5, 93, 94Terram . . . . . . . . . . . . . . . . . . . . . . . . . 58Tetsilk . . . . . . . . . . . . . . . . . . . . . . . . . 116TF Purifiner . . . . . . . . . . . . . . . . . . . . 107Thai United Awa Paper . . . . . . . . . . . . 22Tianjin Toyota Boshoku Automotive Parts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . 44, 133Tianjin Viam Automotive Products . . . . 81Tokyo Kako Giken . . . . . . . . . . . . . . . . 81Tokyo Roki . . . . . . . . . . . . . . . 126–127Tokyo Roshi . . . . . . . . . . . . . . . . . . . . . 22Tora . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Toray Industries . . . . . . . . . . . . . . . . . . 80Torit . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Toyo Roki . . . . . . . . . . . . . . . . . . . . 130Toyobo . . . . . . . . . . . . . . . . . . 128–129Toyoda Automatic Loom Works . . . . 131Toyoda Boshoku . . . . . . . . . . . . . 131, 132Toyota . . . . . . . . . . . . . . 3, 7, 13, 44, 45, 55,. . . . . . . . . . . . . 78, 123, 124, 131, 132, 133Toyota Boshoku . . . . . . 7, 44, 131–133Toyota Boshoku Filtration System . . . . 44Toyota Boshoku Foshan . . . . . . . . . . . . 44Toyota Motor . . . . . . . . . . . 124, 131, 132

UUCI . . . . . . . . . . . . . . . . . . . . 7, 31, 32, 33UIS . . . . . . . . . . . . . . . . . . . . . . . . . 31, 32Unico Filter . . . . . . . . . . . . . . . . . . . . . 97United Components . . . . . . . . 31–33United Dominion Industries . . . . . . . 122United Motors . . . . . . . . . . . . . . . . . . . 14Universal Silencer . . . . . . . . . . . . . . . . 42

VValeo . . . . . . . . . . . . . . . . . . . . . . . . . 118Veratec . . . . . . . . . . . . . . . . . . . . . . . . . 58Viam . . . . . . . . . . . . . . . . . . . . . . . . 80, 81Volant Cool Air Intakes . . . . . . . . . 48, 49Volkswagen . . . . . . . . . . . 3, 38, 39, 55, 123Volvo Trucks . . . . . . . . . . . . . . . . . . . 107

WW.L. Ryan . . . . . . . . . . . . . . . . . . 112, 113Wako . . . . . . . . . . . . . . . . . . . . . . . . 5, 97Wenzhou Nova Filters . . . . . . . . . . . . . . 5Wesfil Australia . . . . . . . . . . . . . . . . . 112Wix. . . . 4, 7, 21, 31, 69, 70, 98, 110, 111, 134–136

YYamaha . . . . . . . . . . . . . . . . . . . . . . . . 130ZZhejiang Universe Filter . . . . . . . . . 5, 118Züricher Beuteltuchfabrik . . . . . . . . . 116

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