From the Sector

• Autoneum is expanding its production capacities in Asia with two new plants in Changchun in the Chinese province of Jilin and Pune in Western India.

The world's largest automotive market Asia is one of the most important sales regions for vehicle manufacturers and suppliers as well as a pioneer for new forms of e-mobility. Autoneum already supplies both international and local vehicle manufacturers in Asia with multifunctional lightweight components for noise and heat protection, supporting them in their commitment to sustainable mobility. Autoneum is expanding its production capacities in the key automotive hubs of China and India to increase its presence and thus its proximity to customers in these important production centers.

Autoneum’s new plant in China, which will be operated as a joint venture, will be located in Changchun in the northern Chinese Jilin province, which is one of Asia’s largest car production centers. The proximity to key local and international vehicle manufacturers makes Changchun a strategically important and attractive location for Autoneum. The plant will help to increase market share with European, Japanese and Chinese car manufacturers with products for light vehicles and also support the expansion of the Company’s business with components for commercial vehicles in this region. The project is supported by the local authorities in China. From the end of 2024, the plant will ramp up production with first samples for already awarded business for inner dashes, interior floor insulators and other NVH (noise, vibration, harshness) components for cars of all drive types.

Autoneum is furthermore expanding its local presence in Western India with a fully owned production facility in Pune in the state of Maharashtra. The Company already operates two locations in India: one in Behror near New Delhi in the north and a joint venture plant in Chennai in the south. Thanks to the new Pune plant, Autoneum will now be present in the north, west and south of the country and gain access to the third of four major automobile production centers in India. Orders have already been received and the plant in Pune will start manufacturing carpet systems, interior trim, wheelhouse outer liners, e-motor covers and other noise protection components as of the second quarter of 2024. From the 7 500 square meter building, Autoneum will supply international as well as local car manufacturers with a particular focus on Indian and Korean vehicle manufacturers.

Due to the impact of the war in Ukraine on the automotive industry and vehicle production as well as of rising inflation, Autoneum is adjusting its corporate outlook for the 2022 financial year. The market recovery will be delayed by current developments.

Since the outbreak of war in Ukraine, new bottlenecks in global supply and logistics chains have been impacting vehicle manufacturer production volumes and thus slowing the revenue and earnings development of the automotive supply industry, especially in Europe. Current developments are accompanied by accelerated inflation and significant price increases on the commodities markets, which have been further exacerbated by the war. These are felt at Autoneum through rising material, energy and transport costs. With regard to the rising costs, automotive manufacturers and suppliers are now required to ensure a fair burden sharing as partners.

In addition, renewed coronavirus-related lockdowns in China are delaying growth in Asia. According to the revised market forecasts1), global automobile production is expected to reach 80.4 million units in 2022, which represents an increase of 4.1% compared to 2021. Growth will thus be significantly lower than was still expected in mid-February.

Autoneum will do its utmost to minimize the impact on the Group. Despite the present challenges, the strategy will continue to be consistently implemented with a focus on innovative and sustainable technologies for growing markets of the future.

Based on current developments and knowledge, Autoneum has updated the forecasts that it presented at the Media Conference, which had not yet included the impacts of the war as outlined above. Autoneum continues to expect revenue to develop in line with the market. For the first half of the year, the Company expects an EBIT margin at break-even level. On the basis of the ongoing collaborative discussions with customers to participate in the sharing of the sharply increased energy and material costs, Autoneum anticipates an improvement in the EBIT margin to 2.0 to 3.0% (previously: 4.0 to 5.0%) for the full year 2022. Free cash flow for 2022 is expected to be in the mid to high double-digit million range.

Autoneum is very well positioned for the transformation of the automotive industry towards e-mobility and sustainability. Our product portfolio is suitable for all drive types, whether internal combustion, hybrid or pure electric vehicles. The medium-term forecasts that Autoneum published in November 2021 remain unchanged positive. The timing of the market recovery will be delayed by current events and will also depend on further geopolitical developments.

FibreCoat GmbH from Aachen, Germany, together with DBF Deutsche Basalt GmbH, developed a completely new type of fibre material to shield electromagnetic radiation from digital end devices, medical technology or e-car batteries cheaply and effectively. The joint project was awarded the overall prize of the“ IQ Innovationspreises Mitteldeutschland“ on 24 June in an online event broadcast live from Leipzig.

The prize is endowed with €15,000 and was sponsored by the Halle-Dessau, Leipzig and East Thuringia Chambers of Industry and Commerce.

Electromagnetic radiation from smartphones, hospital diagnostics and electric car batteries must be shielded so that they do not inter-fere with each other. To prevent mutual interference, they have so far been covered with metal fibre fabrics, a very time- and energy-consuming and thus expensive procedure. The new material from Basalt Faser GmbH and FibreCoat GmbH prevents this with a fibre core made of melted, thinly drawn basalt, which is coated with aluminium and bundled into the so-called AluCoat yarn. This yarn remains just as conductive and shielding, but is lighter, stronger, cheaper and more sustainable than previous alternatives. In addition, there are further advantages:

• The number of process steps required is reduced from ten to one.
• 1,500 metres of yarn are produced per minute instead of the previous five metres.
• The energy required is only 10 per cent of the previous amount.

The result is a price that is twenty times lower.

The textile made of AluCoat fibres is versatile and flexible: as wallpaper it can shield 5G radiation in offices or medical rooms or encase batteries and thus ensure the smooth functioning of electric cars. AluCoat is already being used in some companies. A European fibre centre in Sangerhausen is being planned for mass production.

The two innovative companies DBF Deutsche Basalt GmbH and FibreCoat GmbH from East and West combine the two materials basalt and aluminium to protect against electromagnetic radiation. In doing so, they coat basalt with aluminium and, through this novel combination, create an inexpensive, sustainable and quickly produced alter-native for a market worth billions.

FibreCoat GmbH from Aachen is a spin-off of the Institut für Textiltechnik (ITA) of RWTH Aachen University; the managing directors Dr Robert Brüll and Alexander Lüking and Richard Haas have completed their doctorates at the ITA or are in the process of preparing their doctorates. Georgi Gogoladze, Managing Director of Deutsche Basaltfaser GmbH, also studied at RWTH Aachen University. The two managing directors Brüll and Gogoladze know each other from their student days.