Flowing success Tristone Group

fLowing success

Tristone Group, a globally operating automotive supplier group, is a specialist in tailor-made flow technology solutions used in all major automobile brands. Last year the group reached a new sales record, laying a solid foundation for further growth, further internationalisation and increased R&D efforts. In an interview with Romana Moares, Group CEO Günter Frölich spoke about the latest developments.

Top quality, reliability and customer-oriented innovation – these are some of the values to which the worldwide success of the Germany-based Tristone Group has been attributed. They are also the basis of continued growth and expansion, as is evidenced from its latest financial results.

In 2017, the Tristone Flowtech Group reached an annual turnover of €288 million with over 3000 employees in manufacturing and development locations in Germany, Poland, Czech Republic, Slovakia, Turkey, Spain, France, Italy, Mexico, India and China, cementing its leadership worldwide in supplying fluid applications in the areas of engine cooling, battery cooling and turbochargers.

“New business award contracts for fluid battery cooling applications for electric and hybrid cars led to €24 million p.a. in sales, or lifetime revenues of about €176.6 million, and are spread among 11 global original equipment manufacturers and one battery manufacturer, with 17 different new future car platforms. Contracts for battery cooling applications accounted for 26 per cent of total business award contracts, demonstrating the strong position of the group in this business field,” said Günter Frölich.

Keeping pace with new developments

The group was established as a result of a spin-off of the former Fluid Automotive Business Unit of Trelleborg AB in 2010. In February 2017, the group was purchased by the Chinese Zhongding Group, Ningguo, and will continue to be managed under the same name and corporate structure.

Tristone Flowtech Group is highly specialised in fluid applications in the areas of motor and battery cooling as well as air-charge and air-intake systems. It is increasingly benefiting from the trend towards a reduction of space and fuel consumption with the introduction of polyamid materials as well as the introduction of new powertrain concepts with hybrid and electric cars and the integration of fluid motor and battery cooling systems.

“We are a well-established market leader in our field of business, a Tier 1 development partner for more or less all major OEMS, delivering our solutions globally,” confirmed Mr Frölich. “We pride ourselves on delivering added value for our customers and providing them

with a whole set of innovative products for fluid applications. Our special strength is that we can combine engine and battery cooling applications for electric and hybrid cars. While market penetration of electric and hybrid cars in 2017 was still very small, i.e. below 2 per cent globally, the production volume is anticipated depending on the different available predictions to grow to about 10 per cent in the next five years.”

Reflecting further on current market development, Mr Frölich highlighted several trends that will change the automotive industry in the coming years. “Basically, we see three technologies that move the market, that are more or less affecting all of our three key product segments: electrification of the power train; hybrid and electric cars as an add-on to combustion engine vehicles; and an increased focus on weight reduction, ultimately leading to replacement of metal and aluminium parts by plastics.

“We are naturally reflecting the trends into our business. Delivering high-quality products and solutions with technological advantages in terms of reliability, functionality and general product characteristics combined with our technical competence as a design partner represent a strong competitive advantage,” Mr Frölich affirmed.

Acting locally, succeeding globally

As a result of these attributes, the last few years were a period of continued global expansion. At the beginning of 2017, a new hose plant in Mexico was commissioned, which now delivers serial production to Ford, General Motors, FiatChrysler, VW, BMW as well as some Tier I customers in Mexico, the US and Canada. At the same time, building of a new facility in India was completed.

In December 2017 the group started with the preparation and preselection of a new US plant located in North Carolina, to support its business in the NAFTA region and especially in the US and Canada. As Mr Frölich explained, the construction of the plant is expected to begin in May and its product portfolio will include engine cooling hose systems, air charge hose systems and fluid battery cooling systems for the US and Canadian passenger car markets.

“The company is doing very well – this year we expect to achieve sales of around €303 million, representing a year-on-year increase of 10 per cent. We have a strong, growing presence in Europe, NAFTA as well as in Asia, with sales in India just starting this year. Now we are getting ready to penetrate the Brazilian market, to further expand our global reach. Our growth target is to achieve €430 million in sales by 2021, generated by twelve production plants located worldwide. Given our track record of delivering the best for the customers and our commitment to continue doing so, this target seems achievable.” n