MAHLE acquires Thuringian pump manufacturer ENTEC

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Stuttgart, July 1, 2008—Stuttgart’s MAHLE Group announced today that MAHLE has acquired all the shares of ENTEC GmbH in Thuringia, Germany. ENTEC is a developer and manufacturer of controlled oil pumps for combustion engines.

In its current organization, ENTEC develops controlled oil pumps on customer order and produces prototypes and small lots for special applications and motorsport. These brought in sales of about EUR 7 million in the 2007 business year, generated with a total of about 60 employees. In addition, licenses for controlled pumps have been issued to contract manufacturing companies for large lot orders. While development is currently concentrated in the Crock/Thuringia location, production principally takes place at the Brattendorf/Thuringia location.

Development trends in modern generations of combustion engines are focused strongly on the topic of significant reductions in fuel consumption, especially in light of imminent CO2 regulations and legislation. In the future, controlled oil pumps will make significant contributions in this area, since they can be precisely tuned to provide only the amount of oil that is needed at different engine operating points. Potential fuel savings due to optimization of the entire oil circuit system, using controlled oil pumps, range at up to three percent. MAHLE plans, in the middle and long term, to exploit the great growth potential for controlled oil pumps as part of its in-house manufacturing program.

Prof. Dr. Heinz K. Junker, Chairman of the Management Board of the MAHLE Group, explains: “Exploiting all of our development capacity and covering all fronts of the combustion engine, we are currently working on significant increases in efficiency and thus on the given potential of a significant reduction in fuel consumption and CO2. Controlled oil pumps can provide a significant contribution for the combustion engine to succeed on the long term in a strongly competitive situation against alternative drive concepts. We expect a significant increase in the usage of controlled oil transport pumps by 2015. Classical, uncontrolled pumps are replaced almost entirely by controlled oil pumps. With the acquisition of ENTEC, we are complementing the product portfolio of our Liquid Management Systems product line and expanding our product range by a significant CO2-relevant system component. We also profit from our extensive production and process expertise for sintered components and aluminum processing, and are confident that we will soon gain significantly increasing market and sales shares.

The MAHLE Group is one of the 30 largest companies in the automotive supply industry worldwide. As a leading manufacturer of components and systems for the combustion engine and related products, MAHLE ranks among the top 3 systems suppliers for piston systems, cylinder components, valve train systems, air management systems, and liquid management systems. MAHLE employs around 48,000 people at 110 production plants and seven research and development centers. In 2007, MAHLE achieved sales of over EUR 5 billion (USD 7.5 billion).