Tognum Aims For Growth

Posted on September 13, 2006

Tognum, the holding company for engine builder MTU Friedrichshafen, fuel injection specialist L’Orange and gaseous-fueled engine and gen-set supplier MDE Dezentrale Energiesysteme, announced that it will invest approximately $63 million in those operations by the end of 2007. That is in addition to the $108 million the company said it would spend when it acquired the businesses from DaimlerChrysler.

"This expanded investment program will enable our group of companies to achieve additional organic and profitable growth in lucrative market and product segments," explained Tognum CEO Volker Heuer.

The additional investment will include an expansion MTU Friedrichshafen’s production capacity of Series 2000 and 4000 engines. By the end of 2007, annual output is to rise by one third from the present level of approximately 6000 units. This production expansion will also have positive employment effects for the group's production plants in Detroit and Suzhou. In these factories, the Series 2000 is assembled for local markets in the United States and China.