MANN+HUMMEL founds subsidiary with own production in Russia

In the middle of 2007 MANN+HUMMEL founded the 100% subsidiary MANN+HUMMEL OOO (corresponding to Limited Liability Company) in Moscow. In addition, the company has established a production facility in Saratow which will be managed by the Russian company. The founding of the company and the production facility allows MANN+HUMMEL to further expand its market position in central and eastern Europe. The region is one of the most important area of market growth in Europe.

Ludwigsburg, 24th August 2007 – In the middle of 2007 MANN+HUMMEL, development partner and series supplier to the international automotive and mechanical engineering industry, founded a 100% subsidiary in Moscow, MANN+HUMMEL OOO (corresponding to Limited Liability Company). In addition, MANN+HUMMEL has established a production facility in Saratow which will be managed by the Russian company. "The founding of the MANN+HUMMEL company and setting up of local production strengthens our market position for the further expansion of business in the central and eastern European markets. Russia is one of the fastest growing markets in Europe", explained.

Dr. Dieter Seipler, CEO at MANN+HUMMEL. According to forecasts the Russian gross domestic product will increase on average by 6% per year until 2010. This includes important growth areas for MANN+HUMMEL customers such as the industrial processing, transportation and construction industries.

In future, the Moscow company will manage the whole business of the MANN+HUMMEL group with the automotive and industrial aftermarkets, and market for industrial OEM customers in the territory of the Russian Federation. In the aftermarket products will be distributed under the brands MANN-FILTER and UNICO-FILTER. The distribution and production structures will be steadily expanded. With the new local subsidiary business processes for customers will be simplified and accelerated. This will result in customer benefits through a local market presence, leading, for example, to quicker reaction times and invoicing in the local currency.

MANN+HUMMEL has founded the production facility in Saratow to satisfy demands from Russian engine, vehicle and machine producers for locally manufactured products and to generate new regional business. Saratow on the Wolga is located approx. 860 km south-east of Moscow. In October 2007, production of fuel prefilters for Russian vehicle manufacturers will start at the Saratow facility.

The founding of the Russian company and the set-up of the production facility at Saratow are important milestones in the internationalisation strategy of MANN+HUMMEL. The filter specialist has already had its own representative office in Moscow since 1st August, 2004 for the business areas of filter elements and industrial filters. Since then Moscow has supported sales and marketing for the aftermarket business and the area of industrial filters. In the past, Russian distributors were supported from Germany.