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Annual Report 2012 - Knorr-Bremse AG.

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<strong>Report</strong><br />

55<br />

Directly alongside the new production plant is the <strong>Knorr</strong>-<strong>Bremse</strong> Technology Center India (TCI). Here,<br />

<strong>Knorr</strong>-<strong>Bremse</strong> Commercial Vehicle Systems has focused its engineering and development services for<br />

commercial vehicle products specifically for the Asian market. One core activity is software development.<br />

In order to benefit from synergies, a new software development center for the Rail Vehicle Systems<br />

division is being set up in the same building. By 2015 the TCI will be providing work for some 200<br />

employees. Pune is an established hub of IT and software activities in India, which means there is an<br />

extensive local pool of talented software developers.<br />

By setting up this new development center <strong>Knorr</strong>-<strong>Bremse</strong> is making sure that the company will have<br />

sufficient resources going forward to meet the growing demand in the Asian market and master increasingly<br />

complex products.<br />

Bendix steps up capacity in Kentucky<br />

In Bowling Green, Kentucky, Bendix Spicer Foundation Brake LLC operates a state-of-the-art manufacturing<br />

site for air disc brakes and foundation drum brakes for the North American commercial vehicle<br />

market. In 2011, the company expanded the size of the facility while also launching a new automated<br />

disc brake line at the location, tripling its assembly capacity and capitalizing on its significant market<br />

gains in foundation brakes. This was followed in the year under review by a further multi-million dollar<br />

investment in a major expansion of production capacity and purchase of new equipment. One key<br />

factor in this decision was new first phase of the US Reduced Stopping Distance regulation enacted in<br />

August 2011. The mandate requires a 30% reduction in stopping distance for new three-axle tractors<br />

with Gross Vehicle Weight Ratings (GVWRs) up to 59,600 lbs. and produced after the August 1, 2011,<br />

implementation date. Tractors with two axles, as well as severe service tractors with GVWRs above<br />

59,600 lbs., must comply with the new mandate by August 1, 2013. To help operators meet this requirement,<br />

Bendix developed the Bendix ADB22X air disc brake and the high-performance Bendix<br />

Extended Service (ES) drum brake. Introduction of the new legislation triggered a sharp rise in demand<br />

for these brakes.<br />

<strong>Knorr</strong>-<strong>Bremse</strong> Brazil moves to new plant at Itupeva<br />

In the wake of significant growth in recent years and in anticipation of medium-term growth in the<br />

South American market, <strong>Knorr</strong>-<strong>Bremse</strong> decided last year to expand and relocate its current Brazilian<br />

production plant – the biggest joint facility for the rail vehicle and commercial vehicle divisions in the<br />

Group. The location selected was the city of Itupeva, only 85 km from the current plant in São Paulo.<br />

The process of transferring operations began at the end of <strong>2012</strong>.<br />

The company’s São Paulo plant had reached the limits of its capacity and could not accommodate any<br />

additional product lines. Space restrictions also meant that production processes could not be brought<br />

up to modern standards. As the land surrounding the plant was increasingly being used for residential<br />

purposes, there was no scope to expand the existing site.<br />

The biggest joint<br />

facility for rail and<br />

commercial vehicles<br />

will in future be<br />

located in Itupeva,<br />

Brazil.<br />

The new plant will manufacture brake control systems, bogie equipment and onboard systems for rail<br />

vehicles, but some 70% of its production will be for commercial vehicles, covering the entire product<br />

portfolio for the local truck market, including brake control systems, air supply and treatment systems,<br />

brake cylinders, disc and drum brakes and torsional vibration dampers.<br />

The move to the new location has enabled <strong>Knorr</strong>-<strong>Bremse</strong> to significantly extend its capacity not just in<br />

volume production and equipment refurbishing but also in the fields of surface treatment, functional<br />

and torsion testing and vehicle testing. The focus during the design phase of the new facility in Itupeva<br />

was on optimizing layout and production processes and introducing a modern logistics concept.<br />

The result should be significantly reduced throughput times in the various production processes.

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