Auburn Hills’ Faurecia to Acquire Hug Engineering to Improve Depollution Systems for High Horsepower Engines

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Auburn Hills-based automotive supplier Faurecia today announced an agreement to acquire Swiss company Hug Engineering, which specializes in the design and production of complete exhaust gas purification systems for engines above 750 horsepower. Terms of the agreement were not disclosed.

High horsepower engines are used in marine propulsion, power generation, rail, agricultural, and other industries. The market for emissions purification systems for these engines is expected to reach more than $2.4 billion by 2025 as regulations come into effect, covering more than 75 percent of the market as compared to 25 percent today.

“This is a great step forward for Faurecia in its strategy to improve air quality through world class after treatment systems for all types of diesel engines,” says Christophe Schmitt, executive vice president of Faurecia Clean Mobility. “The combination of Faurecia’s global reach and world leading innovative systems for commercial vehicles with Hug Engineering’s systems expertise will enable us to grow rapidly in the high horsepower market as regulations come into force.”

Hug Engineering is a European leader in engine depollution and develops and offers complete systems including manufacturing and assembly. Its key technologies include diesel particulate filters, selective catalytic reduction nitrous oxide, and catalytic oxidation. The company currently employs 230 people in five countries.

The transaction is subject to regulatory approval in some European jurisdictions, and is expected to close in the first quarter of 2018.

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