April 4, 2023 Freudenberg Group Announces North American Growth

Over $3.5 billion in North American sales—making for 29 percent of global sales, an 11 percent increase from 2021.

• Over $3.5 billion in North American sales—making for 29 percent of global sales, an 11 percent increase from 2021
• A total of 11,867 employees in North America, up 339 employees from last year
• Emphasis on mobility transformation, sustainable solutions and climate protection—aiming to be climate-neutral by 2045

Detroit — German-based global technology and solutions company, Freudenberg Group, demonstrated resilience and profound results in 2022 amid a turbulent fiscal year—resulting in a 17 percent increase in global sales for a total of $12.3 billion.

“Freudenberg is growing profitably, investing heavily, and driving the energy transition,” said Dr. Mohsen Sohi, CEO, Freudenberg Group.

Of total global sales, 29 percent stemmed from North America, amounting to $3.5 billion. Moreover, Freudenberg’s North American workforce totaled 11,867 employees in 2022—making up 23 percent of the global workforce. Overall, Freudenberg employees represent 146 different nationalities, working in 60 different countries worldwide.

“In a year clouded by high inflation, supply chain disruption and an overall strenuous corporate climate, Freudenberg has grown globally and weathered the storm with resilience to further drive innovation,” said Sarah O’Hare, Freudenberg’s North American president and regional representative. “We took significant strides further cementing ourselves as a leader in the many industries and nations we operate in, conducting several business acquisitions, continuing to innovate and invest in research and development, all while prioritizing our employees. After such an exciting year, we’re eager and equipped with the know-how to continue paving the way for a better tomorrow as we have been doing for a better part of two centuries.”

Freudenberg Business Groups’ North American Milestones

Throughout 2022, Freudenberg invested globally in the creation of a new business group, assets, real estate and more, totaling a financial investment of $421.6 million globally. With eleven business groups in place, serving industries including healthcare, food processing, textiles, filtration technology, sealing technologies, oil and gas and medical—surmounting to 40 markets and thousands of applications—Freudenberg’s comprehensive portfolio drove tangible results in 2022, alongside some notable additions and acquisitions.

In April 2022, Freudenberg formed Freudenberg e-Power Systems (FEPS)—offering emission-neutral drive solutions—and began building up its production and assembly capacity for battery systems in North America. The beginning of 2023 saw two instrumental developments for the new business group. Freudenberg first fully acquired XALT in Midland, Michigan. Then in February 2023, FEPS and LG Energy Solution signed a multi-year contract for the supply of 19 GWh of lithium-ion battery cell modules. These developments triggered further investments in the XALT battery gigafactory in Midland, Michigan, expanding its ability to meet rising demand and ensure optimal supply.

To accommodate battery and fuel cell testing and continue placing a focus on e-mobility in a variety of business groups, Freudenberg-NOK Sealing Technologies (FNST) upgraded its labs in Plymouth, Michigan. Also in 2022, FNST’s DIAvent® Highflow Pressure Compensation Valve was recognized as an Automotive News PACE Award finalist—a top innovation addressing lithium-ion battery safety. The DIAvent® Highflow combines pressure equalization and emergency degassing functions into a single battery component.

Freudenberg Medical (FM) introduced a variety of new advancements, creating a Handle Design Center of Excellence in Indiana and making important steps in sustainability at two FM locations in California and Massachusetts, Baldwin Park and Beverly respectively, working toward 100 percent green energy.

Additionally, InHealth Technologies®, a FM business unit based in Carpinteria, California that expanded into Canada last year—launched the Blom-Singer® Day&Night™ HME in August 2022. This device is geared toward those who have undergone a total laryngectomy, providing warm, filtered air that reduces respiratory symptoms post-procedure—improving the quality of life for laryngectomy patients. Additionally, in 2022 Freudenberg Medical introduced new products for pharmaceutical bioprocessing such as the HelixFlex™ brand of Thermoplastic (TPE) tubing, a high purity TPE designed for fluid transfer.

In October 2022, Chem-Trend, a brand of Freudenberg based in Howell, Michigan, acquired Deurowood®, a supplier of additives for the global paper impregnation industry. Additionally, Chem-Trend realized a global expansion of its IQ products—DilutionIQ™ & SprayIQ™ systems—in 2022, driving real-time data insights to manufacturers around the globe.

Freudenberg Home and Cleaning Solutions (FHCS) has expanded production at its facility in Aurora, Illinois to support manufacturing of the EasyWring™ RinseClean™ Spin Mop, alongside the launch of some additional products, including a new broom, produced in Aurora.

Research and Development

A pioneer in innovation, development and forward-thinking, Freudenberg’s monetary investments in the research and development totaled $605.6 million in fiscal year 2022, an increase of approximately 15 percent from the previous year. This brings Freudenberg’s total global investment in research and development to around $2.1 billion since 2019.

“As a global leader in technology, Freudenberg not only recognizes the need to invest in research and development, but truly sees it as an opportunity to make a positive impact to a society at large and fuel innovative, modernized practices that support creative ideas,” O’Hare said. “That is why we continue to increase our investments in research and development. For almost 175 years, innovation has made us resilient and allowed us to grow while serving the communities in which we operate.”

Mobility and Sustainability

Freudenberg products work to supplement and aid the energy transition by both expanding the battery and fuel cell business and working toward climate neutrality.

In preparing battery and fuel cell businesses for a revolution in mobility, Freudenberg has invested in battery, hydrogen, fuel cell and high-tech commercial vehicle components and technologies—resulting in a 50 percent sales increase for components. Freudenberg continues to work on emission-free solutions and processes to keep up with the changing landscape.

With a goal to be climate-neutral by 2045, Freudenberg works to both purchase green energy and to generate in-house green electricity, as part of a strategic multi-step approach toward increasingly sustainable practices. Globally in 2022, Freudenberg increased its share of renewable energy from 21 to 30 percent of total electric power consumption.

Social Commitment and Success

Alongside tangible business results proving Freudenberg’s industry leadership and expertise in 2022, the global company operationally focused on key strategic themes: the transformation of mobility, digitalization and sustainability. Overall, the brand’s contributions have continuously aligned to improve communities through innovation and sustainable solutions.

More specifically, Freudenberg remains committed to social involvement and philanthropy, providing $18.9 million in funding to charitable projects since 2015 through its e² “Education and Environment” program. 85 of these projects have been spearheaded in North America since the onset of the e² initiative—19 of which are currently active projects.

“In summary, this was another year in true Freudenberg style. A year of solid performance in which we continued to create new opportunities for future sustainable growth,” O’Hare said. “Looking back on our results annually is an optimal time to reflect and prepare ourselves for upcoming prospects and challenges through which we continue to make meaningful impacts.”

For more information on Freudenberg and its portfolio of innovations, visit http://www.freudenberg.com. 

About Freudenberg Group
Freudenberg is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers and research institutions, the Freudenberg Group develops leading-edge technologies and excellent products and services for about 40 markets and for thousands of applications: seals, vibration control components, battery and fuel cell, technical textiles, filters, cleaning technologies and products, specialty chemicals and medical products.

Innovation strength, strong customer orientation, diversity, and team spirit are the cornerstones of the Group. The 174-year-old company lives by its core values: a commitment to excellence, reliability and pro-active, responsible action. In 2022, the Freudenberg Group employed some 51,000 people in around 60 countries worldwide and generated sales of more than €11 billion. For more information, please visit www.freudenberg.com.

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