Opcon subsidiary SEM to double its share of manufacturing volumes to Scania-Cummins’ major environmental project – XPI injection system
• SEM receives order to double its share of manufacturing volumes for Scania-Cummins XPI
• Opcon’s order book continues to grow, now worth almost 600 MSEK
SEM, a subsidiary of energy and environmental technology Group Opcon AB, has earlier been chosen as a partner for the production and development of stators, a component used in the Scania-Cummins XPI injection system for diesel engines. SEM, as one of two suppliers, has had a guaranteed manufacturing volume 2009-2014, as a base for investments in Åmål, Sweden. Volumes, has been large enough to make the project a deciding future project for the business area Engine Efficiency and the Opcon group alike.
Today, SEM has entered an agreement with Cummins-Scania LLC JV to double its volumes during the contract period of 2009-2014, compared to the earlier agreed upon volumes, as SEM has also won an order for production for Cummins’ engines. This also means that SEM will make further investments in process equipment for the new manufacturing line that is presently being prepared in Åmål.
By significantly increasing injection pressure, among other improvements, the XPI system cuts emissions, enabling engines to meet the very strict Euro 5 targets for emissions of particles and NOx. One stator is used in each cylinder.
“To secure such a large order to the truck and heavy vehicles industry, today, is a further testament to the merits of our strategic focus on energy and environmental technology. Sure, we have noticed effects of the economic slow-down on limited areas of our business. But our focus on energy and environmental technology has proven right. The Opcon Group has had a steadily growing order book in the last few months that is now worth almost 600 MSEK, says Opcon CEO Rolf Hasselström”
“This was already before today’s agreement a very large and profitable order for SEM and Opcon, with production starting already in the middle of next year. We have earlier taken the decision to invest around 40-50 MSEK in Åmål for the future manufacturing of these components to Scania-Cummins. We will now add further investments to that. We are looking at large future volumes, with really high volumes already in 2010, says Opcon’s CEO, Rolf Hasselström.”
“During this year we have performed additional development on the product and delivered prototypes which Scania-Cummins have obviously been very content with. It is also important recognition of our technical expertise and competence that we double our part of the volumes in competition with others. At the same time this have taken us to a completely new level as a development partner for advanced energy and environmental technology projects also in this field where the manufacturing order will help us to strengthen our strategic competence in Åmål, adds Opcon’s CEO, Rolf Hasselström.”
For further information, please contact:
Niklas Johansson, vice president, Investor Relations, Opcon AB, tel+46 8 466 45 00, +46 70 592 5453
Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. +46 5 8 466 45 00, +46, fax +46 8 716 76 61
e-mail: info@opcon.se
www.opcon.se