Cummins acquires two Faurecia ATS plants

Cummins Emission Solutions aftertreatment system (Photo: Cummins)

Cummins Emission Solutions has completed the acquisition of two Faurecia commercial vehicle component manufacturing plants.

The value of transaction was reported to be $199.2 million.

The factory sites are in Columbus, Indiana and Roermond, the Netherlands. The plants were primarily involved in production of vehicle exhaust aftertreatment systems (ATS).

Vice president of Cummins Emission Solutions, Cary Chenanda, commented: “This acquisition provides an opportunity for the Cummins Emission Solutions business to ensure continued access to the technology and facilities it needs to meet current and future demand for low-emissions products and to ensure continuity for both the employees and customers of the acquired manufacturing facilities.”

Faurecia, which is part of the Forvia Group, has been a Cummins supplier for more than a decade. The divestment and acquisition of the factories will ensure the long-term supply of ATS and related assemblies for Cummins.

The purchase is said to add ‘significant’ technical and manufacturing resources and enhances Cummins’ existing mixer portfolio.

Cummins will honor Faurecia’s existing supplier and customer contracts from both facilities, making the required investment to complete those deals. Faurecia will remain a supplier to Cummins in India, China, South Africa and South America.