Technology company Freudenberg has reported sales of €11.75 billion for 2022, against €10.04 billion it had reported the previous year. At €442 million, sales were also significantly higher for Freudenberg in India over the previous year.
The increase largely resulted from inflation-related price increases of about €700 million, positive exchange rate effects of about €500 million, and an increase in sales volume of about €400 million. In 2022, Freudenberg achieved an operating profit of €941.8 million. This was significantly higher than the figure of €877.3 million for the previous year.
Considering the Ukraine war and other problems the world is facing, Mohsen Sohi, CEO, Freudenberg Group, said, “We have handled the current challenges well so far.”
Research & Development
In 2022, the company invested €576.8 million in R&D against €500.2 million in the previous year. It brings the total investment in research and development to more than €2 billion since 2019. Out of the total sales, the proportion of new products – those less than four years old – is 31.6%, a communication from the company said.
As a part of the strategic investment announced in 2020, Freudenberg India, in Dec 2022 began the construction of two plants, Vibracoustic and Freudenberg NOK, at Morinda in Punjab.
Also Watch: Esther Maria Loidl, CHRO, Freudenberg SE | Mobility Outlook | Women In Mobility Formed in April 2022, the new business group - Freudenberg e-Power Systems, has started to build up its production and assembly capacity for battery systems in Midland, USA. In Parets des Vallès, Spain, Freudenberg Sealing Technologies has begun building a state-of-the-art factory to produce elastomer products for the auto industry. Vibracoustic has expanded production and assembly capacity for bellows in Europe, the USA, and Mexico. In addition, Freudenberg Performance Materials has continued investing in needle-punched nonwovens facilities at its Škofja Loka production facility in Slovenia. The investments in Germany came to €144.3 million (the previous year: €88.0 million), the company said.
Portfolio
In December 2022, the Freudenberg company SurTec International GmbH in Bensheim, Germany, acquired Munich-based omniTECHNIK Mikroverkapselungs GmbH specialises in thread-locking products.
Last year, the company hired about 7,800 employees, which is about 1,000 more than the previous year and an increase of 14%. Europe, North America, China and India were the main focuses of the hiring.
Future Mobility
Based on growth opportunities, a new business group – Freudenberg e-Power Systems – was formed in April 2022, and it has achieved a milestone with the world's first type-tested methanol-fueled fuel cell system for the maritime sector. It has also finalised a collaborative project with the automotive supplier ZF Friedrichshafen. The goal is to develop a fuel cell and battery drive system and its components. Further, Freudenberg e-Power Systems and LG Energy Solution have signed a multiyear contract for the delivery of lithium-ion battery cell modules, the company noted.
Sohi said, “One example is the expansion of the battery and fuel cell business. Another is our ambition to be climate-neutral by 2045.” Therefore, Freudenberg is turning to a multistep strategy of energy savings, electrification, and purchases, along with compensation for CO2 emissions and its production of green electricity.