A perfect fit Bosal

A PERFECT FIT

Bosal is a world leader in the manufacture of exhausts and components for the automotive industry, as well as of precision steel tubing for industrial applications. Philip Yorke talked to Peter Tucknell, Bosal’s UK managing director about the company’s diverse products and its plans for future expansion.

Bosal was established in 1923 in Alkmaar, in the Netherlands, and today has its headquarters in Lummen, Belgium. The company makes silencers for passenger cars as well as diesel exhaust gas ‘after-treatment’ systems for trucks, buses and other industrial applications. Bosal’s diverse portfolio of products also extends to TBI exhaust systems, catalytic converters, tow-bar systems and roofbars and roofracks. Added to this, the company produces wind deflectors, vehicle cabins, irrigation equipment and precision steel tubing.

The Bosal Group is a global operator employing around 6000 people in 41 manufacturing plants throughout the world. These are backed up by 12 distribution centres. Bosal’s key customers include all major car manufacturers worldwide, as well as a wide range of leading industrial conglomerates.

In addition to the company’s long-standing involvement in the automotive market, Bosal’s TBI exhaust systems for trucks and buses are tailor-made to OE (original equipment) specifications in Belgium and the United Kingdom. The company’s customer base in this sector ranges from manufacturers of stationary equipment and agricultural machinery, to companies producing off-road and construction machinery. Today the Bosal Group remains a privately owned business, which in 2009 recorded sales of more than €600 million.

Putting customers and quality first

Bosal’s on-going commitment to quality and reliability has helped to ensure that it continues to gain market share and extend its customer base. Tucknell said “The after sales market is extremely competitive and there are plenty of companies who have their products out-sourced to undercut market leaders such as ourselves. However, we manufacture our exhaust systems here in the UK and at our other major European plant in Belgium where quality and customer requirements are put before anything else. Our wholesalers and distributors know that when they order from us they will benefit from optimal customer satisfaction. They also know that our products have good ‘fitability’ and that we pay great attention to detail. This is especially important for the huge number of ‘fast-fit centres throughout the UK and Europe, whose reputation is based on providing quick service and quality products and who form a large part of our customer base.

“Traditional garages also benefit from our superior quality products and the trouble-free fit that our brands offer. Here in the UK we have the capability to make complete exhaust systems, which are manufactured from our own tubular steel and are all produced in-house. We are the leading OE supplier in Europe and in the UK supply such wellknown automotive brands as Land Rover and Chrysler cars. We also produce tubes for more general applications such as those for furniture and agriculture. In fact, a growth market for us is the supply of tubes for undercover tunnels for out-of-season growing for farmers and nurserymen, as well as providing tubes for irrigation systems in South Africa.”

Bosal has a global presence when it comes to the delivery of tubes and tubular products,

with manufacturing plants in Europe and South Africa. These products range from standard round, oval and perforated tubes, to complex profiles that can vary from low carbon steel, in hot rolled and cold reduced steel, to coated, aluminised steel and galvanised products as well as stainless steel ferritic and austenitic steel products. Bosal’s state-of-the-art production facilities are fully computer controlled and process more than 120,000 tonnes of steel per year.

Continuous investment programme

More than 50 per cent of all Bosal products produced in the UK and Belgium are manufactured specifically for export markets. In the UK the company has a major production facility extending to over 200,000 square feet (approx 70,000 m2), with a plant of similar configuration in Belgium. Tucknell added, “Our main European markets include Germany, which is our biggest market, the Benelux, the Spanish peninsula and of course the UK. Our sister plant in Belgium distributes to eastern europe, which we see as a growth market. In particular, the Czech Republic, Russia and Hungary are currently offering us the best opportunities for growth. Our global expansion is managed by the Group board and after a period of consolidation, the company is now investing in new plant in eastern Europe and has just established a joint venture company in China.”

The Bosal Group recently decided to expand its plant in central Hungary to meet growing demand from major OEMs there for its innovative automotive products. This major facility has been subsidised by the Hungarian government and entered full production towards the end of 2010, producing tow-bar systems, wind-stops and lifting-jacks. In China too the company has extended its capability with a joint venture and a 50/50 partnership deal. The new company will be known as Bosal Huaxiang and becomes part of the leading supplier of automotive parts in China, Ningbo Huaxiang Co Ltd, and is based in Shanghai.

The primary focus of the new company will be the supply of automotive parts and systems to the major Chinese OEMs; SAIC, FAW, FAW-VW, SVW and SGM located in the Shanghai region.

Bosal’s strong performance and increasing global market share in its traditional and emerging markets is based on its indepth experience in the marketplace. This performance is enhanced by a thorough understanding of the unique requirements and operating environments required for the manufacture of a diverse range of tubular steel products. n