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Tognum Expands Presence in the U.S.

Posted on March 5, 2010

Tognum announced plans to develop an engine assembly and manufacturing plant for the MTU brand in Aiken County, South Carolina, U.S.A. The new plant will replace the exisiting assembly plant in Detroit, Michigan, U.S.A.

The company said the new site will offers Tognum the opportunity to produce engine parts in the U.S. dollar region, develop new markets and respond more flexibly to changing market requirements. Production is scheduled to begin at the end of 2010. For the new facility, Tognum purchased an existing building and the associated premises from drive component manufacturer SKF.

In addition to engine assembly, the new plant offers Tognum the ability to manufacture engine components, such as cylinder heads and high-volume engine attachments and fittings. The premises will also allow for production expansion should market require it. In the medium term, Tognum will be investing about US$45 million on the 100 acre site, which includes a 25 000 m2 production building, and in assembly, inspection and production facilities.

“For a global group like Tognum, a global production network is absolutely essential, and the plant in Aiken has an important role to play. By manufacturing parts in the USA, we are less vulnerable to exchangerate fluctuations between the US. dollar and the euro, have production facilities located close to the customer, fewer parts in an advanced stage of manufacture to be transported from Europe to North America and will subsequently reduce high import duties. The higher value added in the U.S.A. also increases our chances when competing for public contracts offered by U.S. authorities," said Volker Heuer, chairman of the executive board and CEO of Tognum AG.

For more information: www.tognum.com

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