One of the biggest global manufacturers of trucks and buses has chosen Kongsberg Automotive (KA) as the sole supplier of air brake couplings for their coming product programmes. Deliveries will be made to several manufacturing locations on four continents.
Annual revenues between NOK 175 and 200 mill over 10 years – the biggest order for KA ever
The existing annual sales of couplings to this customer is slightly above NOK 100 mill. The new product programme will be introduced at the end of 2008 and one year later the annual turnover is expected to be about NOK 175 mill. The agreement will cover a 10 years period and the volumes are expected gradually to increase.
New product programme
A significant portion of the program will be based on composite materials substituting the existing brass solutions. The new system concept offers more functionality, increased modularity and flexibility and lower weight. In combination with the new material this represents a substantial installed cost reduction for the customers.
For KA, the new and broader product programme implies increased competitiveness and new market opportunities also for new customers and applications. More simple and faster production processes and less dependency of brass (a material which cost has increased with 130 % over the last year) will reduce the costs significantly.
Secures workplaces at Raufoss
The products and production processes are designed and qualified at Raufoss. The main part of the production will take place at Raufoss and will contribute to safeguard the workplaces for the more than 200 employees. When the volumes increase, production will take place in America and Asia as well as Raufoss. New production lines will be designed and have their start-up at the competence centre at Raufoss, for then being transferred to other continents.
Positive market opportunities
KA Raufoss will lead the coming technology change in this market segment contributing to standardisation and improved efficiency for the customers in the years to come. The new product program is designed as a global concept with possibilities for local applications that opens new global opportunities. Through the new programme KA will be positioned to take a broader system responsibility for the compressed air distribution on commercial vehicles. Raufoss has previously landed an order with another truck manufacturer for composite couplings representing NO