ElringKlinger Refines Focus by Selling Two Subsidiaries

ElringKlinger AG, responding to the evolving automotive landscape, has streamlined its corporate focus by selling two subsidiaries located in Sevelen, Switzerland, and Buford, Georgia. The transaction, expected to conclude by the end of 2024 pending antitrust clearance, is part of a strategic alignment under its SHAPE30 transformation plan.

The buyer, Certina Group, a German industrial holding company, will continue operations at these sites, ensuring stability for the 650 employees. The divestments are aimed at honing ElringKlinger's product portfolio, particularly in the thermal and acoustic shielding sectors in Europe and North America.

While ElringKlinger anticipates a non-cash impairment loss due to this reclassification, it projects a steady EBIT margin but expects 2024 revenues and returns to be slightly below previous forecasts.