Pioneering greener auto-system solutions HiLite

pioneering greener

auto-systeM solutions

HiLite International is a leading global supplier of automotive system parts and solutions with a special focus on greener more fuel-efficient technologies. Philip Yorke reports on a company that is pioneering futuristic technologies that are changing the face of today’s automotive industry.

The roots of HiLite International can be traced back to 1930, when it was established as the Heller Hydraulic Company of Germany. In 1967 it was acquired by Hydraulic–Ring, a leading German hydraulics company. However in 1999 the integration of the company with HiLite Whitehall and Dallas of the USA saw the group become a truly global operation. Another milestone came in 2002 when the company moved its headquarters back to Marktheidenfeld in Germany. In 2011 the company was acquired by the UK equity investment group: 3i. Since that time, it has seen exponential growth worldwide.

Global transformation

Today HiLite is a truly global supplier of leading automotive parts and solutions, as well as an innovator of engine and transmission

products. Through its 3i ownership, it has been transformed from an ambitious and growing automotive business to a global leader in innovative, eco-friendly products for improving fuel efficiency.

Together with the 3i Board of Directors, the group has developed HiLite’s internationalisation strategy. It has also introduced a new Chairman with a strong global sector knowledge and extensive distribution network expertise. In another strategic move HiLite brought in two NXDs (Non-Executive Directors), one with US experience and the other with a Chinese focus, to help develop the Asian market. HiLite also established a state-of-the-art manufacturing plant in China in order to drive Asian sales and the development of a ‘One International HiLite’ culture which has greatly improved operating efficiency through best practice sharing.

Under 3i’s ownership HiLite has seen a 50 per cent increase in its core revenue growth, including sales to China increasing from 0 - 17 per cent in three years. In addition, it won new top-drawer customers globally including Audi and Volvo and provided greater global support to existing customers. This was all augmented by a large scale global-sourcing improvement initiative.

New supply-chain directive

Recently HiLite introduced a futuristic ‘Supply Chain Directive’ that clearly defined the logistical requirements for HiLite’s suppliers in order to ensure smooth processes based on a common supply chain management system.

Supply Chain Management (SCM) is a process-oriented management approach that covers all flows of raw materials, components, semi-finished and finished products, and information along the added-value and supply chain route from the sourcing of raw materials to delivery of the end product.

Logistics is becoming increasingly important to the company and, as a competitive factor, is critical for its economic success. Therefore, it is simply a matter of course that HiLite builds up and optimises reliable and efficient logistics processes with its suppliers. For this reason, it is important for HiLite that logistics be given priority status for its partners and their own supply chain. HiLite’s logistical requirements for its suppliers are carefully structured in order to ensure smooth processes based on a common SCM strategy, thereby minimising costs and improving the supply relationship between its partners.

A greener way forward

The effects of the growing threat of climate change have become the main issue for the entire automobile industry. All HiLite products make a significant contribution to reducing energy consumption and meeting the strictest exhaust standards. HiLite products also help minimise pollution and significantly save energy.

Today HiLite ensures that environmental protection is taken into account at every stage of its production processes. As a result,

energy consumption is reduced and energy efficiency optimised in all its functions and at all levels of the company’s business.

HiLite’s common aim is to continuously review and improve its existing environmental and energy management systems, as well as all its internal processes and energy-related performance goals.

Partnering for perfection

In order to develop further cutting edge, cost effective solutions, HiLite International is partnering with other leading hydraulics manufacturing companies and leading European Universities.

A recent example of the benefits of this strategy is HiLite’s latest partnership with FEV of Germany to develop and manufacture a cost-effective two-stage, variable compression ratio (VCR) connecting rod. The goal of this partnership is to leverage synergies in the development of the product and to devise optimised, cost-efficient solutions for serial production.

According to Professor Stefan Pischinger, President and CEO of the FEV Group, “We have found HiLite to be a strong partner for the final phase of development for the VCR connecting rods, as they have established themselves as a renowned systems supplier within the market.”

David Wei, CEO of HiLite, based in Marktheidenfeld, Germany, gave a positive assessment of the partnership, which initially is scheduled for a period of two years “We supply our customers with advanced and efficient solutions,” said Wei. “By collaborating with FEV and combining our expertise, we will now be able to offer our customers this value proposition in the area of VCR”.

The new VCR technology meets the challenges of downsizing and the associated increase in combustion pressure by enabling optimal adjustment of the compression ratio at any time.

For further details of HiLite International’s latest innovative, ecofriendly products visit: www.HiLite.com