German engineering firm, ElringKlinger, has sign a £10 million contract with GM to supply the US automaker made-to-order vehicle parts.
ElringKlinger has about 140 employees in Redcar, located east Cleveland, and it will manufacture turbo heat shields and exhaust manifold gaskets for GM. The company has invested £1.5 million to add a production line at the Redcar plant, which will produce about 500,000 parts annually and create 60 new jobs. The company will begin production later this year, part of the 5-year agreement signed with GM.
Ian Malcolm, managing director of ElringKlinger (GB), said: “The introduction of these new processes and advanced assembly lines take the business to the next level and will result in higher quality robust designs and increased value for money for the customer.
He added that in the past such parts were assembled manually, and it took workers up to 5 minutes to complete one part. Now, with the new assembly line the entire process has been reduced to 30 seconds. Elring Klinger also signed a deal with BMW for its Mini model, making the company the only volume producer of under-body heat shielding in the UK. The company also said it will help GM with its diesel engine production at its Hungary plant.
“We are firmly committed to the reduction of CO2 emissions, both in terms of the product and how it is delivered, and we will be assisting the Hungary team with a new range of 1.6 mid-size diesel engines to cut fuel consumption by up to ten per cent,” said Ian Malcom.