Cummins to buy two French low-emission tech plants

Cummins Inc. plans to acquire two commercial vehicle-system manufacturing plants from French automotive supplier Faurecia, the companies announced Tuesday.

One of the plants is in the same city as Cummins’ headquarters, Columbus, Ind. The other is in Roermond, Netherlands. The plants are part of Faurecia’s clean-mobility division.

The acquisition is expected to close by the end of the calendar year. Cummins said in an announcement that it will use cash on hand to purchase the two facilities for 142 million euros (about $153 million U.S.).

The purchase is subject to regulatory approvals in the United States, Germany and the Netherlands, and a consultation process with the works council and trade unions in Roermond.

Faurecia opened its 400,000-square-foot digital manufacturing plant in Columbus in 2016 at a cost of $64 million, according to the Indianapolis Business Journal. The plant makes emission control products.

Cummins said that the acquisition “adds significant technical and manufacturing resources and enhances Cummins’ existing mixer portfolio” and would “position Cummins’ Emission Solutions business for long-term success.”

Faurecia has been a partner and supplier to Cummins for more than a decade, Cummins said in its announcement. Forvia Group’s divestment initiatives offered Cummins an opportunity to ensure the long-term supply of aftertreatment components and assemblies.

“Cummins and Faurecia have a long partnership history,” Cary Chenanda, vice president of Cummins Emission Solutions, said in a company statement announcing the acquisition. “This proposed acquisition would enable both organizations to meet long-term strategic goals and would preserve business operations and employment for talented employees within the two plants and related tech centers, while creating value for customers and suppliers across the entire supply chain.”

The two plants will continue operate independently through the acquisition process. Cummins said it plans to honor Faurecia’s existing supplier and customer contracts at both facilities.

Faurecia and Germany-based manufacturer Hella are part of Forvia, the world’s seventh-largest automotive supplier, with 2022 sales of 25.5 billion euros and more than 150,000 employees around the world. Faurecia acquired Hella in 2022 for about $5.74 billion.

“The transfer of these plants and their activities to a trusted engine manufacturer is good news for the plants’ long-term viability, and I am confident our employees and the business will succeed under Cummins ownership,” Faurecia CEO Patrick Koller said in a company announcement. “This transfer enables Faurecia to focus on its leadership positions in the market in ultralow and zero-emission, including hydrogen solutions. The proceeds from this transaction will contribute to Forvia’s asset disposal program of 1 billion euros by the end of 2023, part of its Power25 Plan.” LL

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