Press-Information

Friedrichshafen, 11 August 2008. The Tognum Group and the Swiss company Hug Engineering AG have agreed on a joint venture for cooperation in the field of exhaust aftertreatment. The new company will be established on October 1, with its headquarters in Switzerland. Specialists from both companies will be cooperating to ensure that large MTU diesel engines in the 2000, 4000 and 8000 series can be fitted with exhaust aftertreatment systems as a standard feature in the future. CEO of the new operation will be Friedrich Köskemeier from MTU Friedrichshafen.  "This joint venture will see the coming together of two technological leaders with the twin aims of developing exhaust aftertreatment systems and of setting new standards for pollution removal levels and cost efficiency",  said Volker Heuer, CEO of Tognum AG, emphasizing the significance of the strategic investment.

For MTU as a premium provider of engines and drive systems, turbocharging, fuel injection and electronics have always been three key technologies for a clean and economic combustion process. To fulfill the substantially lower limits of future emission requirements, additional technologies will be necessary for engine development. These include, for example, so-called SCR (selective catalytic reduction) systems in which nitrogen oxides are reduced by means of ammonia. MTU Friedrichshafen was among the first to conduct research on diesel particle filters and SCR systems and to run tests on prototypes. Hug has been gathering experience in this specialist field over many years and has developed and supplied around 1000 SCR systems for retrofitting on diesel engines in locomotives, ships and industrial plants.

Setting out the future course, Dr. Gerd-Michael Wolters, Member of the Tognum Board of Management responsible for Technology & Operations explained "In the next few years, we will be working with Hug to develop MTU-specific filter and SCR technologies through to standard-production maturity". The optimization of costs, installation space and weight will play a significant role in this process. "From 2011, we will be ready for standard production."

The joint venture will invest up to six million euros over the next few years. Despite this exclusive strategic arrangement, both companies are free to continue cooperation with other partners. Hug is planning to develop the capacity needed for standard production by 2011.

MTU Friedrichshafen GmbH - A Tognum Group Company
MTU Friedrichshafen GmbH is the core company of the Tognum Group. It supplies diesel engines and complete propulsion systems for ships, heavy agricultural and rail vehicles, industrial drive systems and decentralized energy systems. The product range, comprising diesel engines from 20 to 9,100 kilowatts power output as well as gas turbines, is one of the most advanced and comprehensive in the industry. The company also develops and produces tailored electronic systems to control and monitor its engines and propulsion systems.

Tognum
With its two business units, “Engines” and “Onsite Energy & Components,” the Tognum Group is one of the world’s leading suppliers of engines, propulsion systems and decentralized energy systems. These products are based on diesel engines with up to 9,100 kilowatts (kW) power output, gas engines up to 2,000 kW, fuel cells up to 363 kW and gas turbines up to 45,000 kW.

The product portfolio of the “Engines” business unit comprises MTU engines and propulsion systems for ships, for heavy agricultural, rail and military vehicles, and for the oil and gas industry. The portfolio of the “Onsite Energy & Components” business unit includes decentralized energy systems, fuel-injection systems from L’Orange, and drive shafts from Rotorion. The energy systems comprise diesel engines for emergency power generation, basic and peak load, and cogeneration power plants based on gas engines, fuel cells and gas turbines that generate both electricity and heat.

In 2007, Tognum generated revenue of more than €2.8 billion and employed approximately 8,200 people. With 26 fully consolidated subsidiaries, more than 130 sales partners and 1,100 authorized dealers, Tognum’s sales and service structure has a global reach. The shares of Tognum AG (ISIN: DE000A0N4P43) have been listed in the MDAX share index since 2007.