CBI: "Daimler Truck AG Operating Production Lines at Full Capacity Due to Strong Parts Demand"

[Asia Economy Reporter Jang Hyowon] Automotive material and parts specialist CB&I announced on the 22nd that the global market demand growth rate in its core business segment, commercial vehicles, has reached an all-time high, with the supply volume of related parts also hitting a record high, and steep sales growth is expected in the second half of the year.

CB&I stated that the production and supply volume of its ‘Bearing Journal’ items used in the eco-friendly engines HDEP and MDEG of Germany’s Daimler Truck and the United States’ Detroit Diesel (DDC) achieved the highest performance in the first half of this year.

Additionally, the demand for the turbocharger parts ‘BASE PLATE 2 types’ of the upgraded version of the existing HDEP engine, the HDEP2020 engine platform, which completed parts development last year and began full-scale mass production supply this year, is rapidly increasing. In response, the company is operating related facilities at full capacity, but since the demand forecast provided at the time of contract exceeded expectations by more than twice, some production capacity limits have led to outsourcing processing with Daimler Truck’s approval.

A CB&I official said, “We are focusing all our capabilities on stable supply due to steady demand growth for key products in the internal combustion engine business division such as TAPPET, TENSIONER HOUSING, and BEARING JOURNAL. The engines of Daimler Truck using our bearing journal parts meet the stringent emission regulations of Europe, North America, and Japan, and the demand for the next-generation engine turbocharger part BASE PLATE is surging so much that Daimler Truck directly transports them by air. The production line utilization rate has reached its peak, and we are responding with a 24-hour full operation system.”

With just the internal combustion engine division’s key products TAPPET and BEARING JOURNAL, CB&I expects sales of approximately 17 billion KRW this year, which accounts for more than half of the total expected sales in the internal combustion engine business division this year. Compared to the same period last year, sales from these related items are expected to increase by more than 50%.

The company stated that these key items, developed with differentiated technology through long-term partnerships with global automakers based on accumulated know-how and technical expertise over the company’s long history, meet market expectations and are expected to show favorable performance. They also anticipate maintaining a stable market share for several years following this year.

The official added, “Despite difficulties in material supply due to soaring raw material prices, congestion and delays in maritime export schedules, and rising export freight rates, all employees are putting their utmost effort into achieving maximum production and record performance. We will continue to pursue expansion of parts production capacity, improvement of manufacturing costs, and profit-centered sales strategies.”

This content was produced with the assistance of AI translation services.