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1. Freudenberg is at home in many markets and different applications. The Group’s prod-
ucts are not only used by customers in the automotive and mechanical engineering
industries, but also by clothing manufacturers and medical technology businesses. Seals,
nonwovens, vibration control components and specialty lubricants made by Freudenberg
companies can be found in the construction, oil and gas, rail and civil aviation sectors.
In fact, only very few industries can do without Freudenberg products. The Group even
has a presence in the home with Vileda®
and O’Cedar®
brand household equipment.
Specialists with this kind of experience make the ideal partner for particularly challeng-
ing projects. The longest crude oil pipeline in the world, a speciality lubricant for an
observatory at one of the coldest places on Earth, or fresh air in one of Europe’s most
famous concert halls – Freudenberg products fit the bill. They may often be invisible, but
that in no way detracts from their reliability. This Annual Report brings you some exam-
ples of Freudenberg’s exceptional versatility.
2010 Annual Report
Freudenberg Group
Freudenberg2010AnnualReport
www.freudenberg.com
Editorial Information
PuBlished BY:
Freudenberg & Co.
Kommanditgesellschaft
69465 Weinheim, Germany
www.freudenberg.com
PROJECT TEAM:
Corporate Communications:
Cornelia Buchta-Noack
Thomas Hoch
Katrin Jacobi
Group Accounting and Controlling:
Frank Reuther
Saskia Römer
Sabrina Luckart
Anja Killian
DESIGN:
Struwe & Partner, Düsseldorf, Germany
PHOTOS:
Freudenberg Group
Baader Planetarium
Michaela Frey, EagleBurgmann Germany,
Wolfratshausen, Germany
Gewandhaus/Gert Mothes
Herrenknecht AG
Bernhard Mayr, Riess-Fotodesign, Garching,
Germany
REUTERS/Jessica Bachman
REUTERS/Str Old
Gerald Schilling, Ketsch, Germany
Werbeagentur Klass‘, Hamburg, Germany
PRODUCTION:
Druckhaus Diesbach, Weinheim, Germany
2. Freudenberg is at home in many markets and different applications. The Group’s prod-
ucts are not only used by customers in the automotive and mechanical engineering
industries, but also by clothing manufacturers and medical technology businesses. Seals,
nonwovens, vibration control components and specialty lubricants made by Freudenberg
companies can be found in the construction, oil and gas, rail and civil aviation sectors.
In fact, only very few industries can do without Freudenberg products. The Group even
has a presence in the home with Vileda®
and O’Cedar®
brand household equipment.
Specialists with this kind of experience make the ideal partner for particularly challeng-
ing projects. The longest crude oil pipeline in the world, a speciality lubricant for an
observatory at one of the coldest places on Earth, or fresh air in one of Europe’s most
famous concert halls – Freudenberg products fit the bill. They may often be invisible, but
that in no way detracts from their reliability. This Annual Report brings you some exam-
ples of Freudenberg’s exceptional versatility.
2010 Annual Report
Freudenberg Group
Freudenberg2010AnnualReport
www.freudenberg.com
Editorial Information
PuBlished BY:
Freudenberg & Co.
Kommanditgesellschaft
69465 Weinheim, Germany
www.freudenberg.com
PROJECT TEAM:
Corporate Communications:
Cornelia Buchta-Noack
Thomas Hoch
Katrin Jacobi
Group Accounting and Controlling:
Frank Reuther
Saskia Römer
Sabrina Luckart
Anja Killian
DESIGN:
Struwe & Partner, Düsseldorf, Germany
PHOTOS:
Freudenberg Group
Baader Planetarium
Michaela Frey, EagleBurgmann Germany,
Wolfratshausen, Germany
Gewandhaus/Gert Mothes
Herrenknecht AG
Bernhard Mayr, Riess-Fotodesign, Garching,
Germany
REUTERS/Jessica Bachman
REUTERS/Str Old
Gerald Schilling, Ketsch, Germany
Werbeagentur Klass‘, Hamburg, Germany
PRODUCTION:
Druckhaus Diesbach, Weinheim, Germany
3. Highlights
Freudenberg group 1)
2006 2007 2008 2009 2010
Sales [E million]
Germany 1,238 1,325 1,275 961 1,195
EU (excluding Germany) 1,661 1,839 1,768 1,440 1,639
Other European countries 242 271 235 186 236
North America 1,216 1,164 953 810 1,132
South/Central America 197 217 269 232 280
Asia 413 431 461 483 877
Africa/Australia 86 94 89 89 122
Total sales 5,053 5,341 5,050 4,201 5,481
Consolidated profit or loss 219 275 176 -250 322
Cash flow from operating activities 333 407 393 456 468
Cash flow from investing activities - 271 - 319 - 384 -195 -270
Depreciation and amortization 232 256 272 302 255
Balance sheet total 4,470 4,628 4,861 4,688 5,398
Equity 2,060 2,140 2,278 2,087 2,560
Personnel expenses 1,535 1,592 1,534 1,481 1,606
Workforce (as at Dec. 31) 33,526 34,330 32,738 32,142 34,319
Workforce (annual average) 33,542 35,060 33,569 31,616 34,200
Business Areas 2006 2007 2008 2009 2010
Sales [E million]
Seals and Vibration Control Technology 2,788 3,008 2,846 2,226 3,112
Nonwovens 1,017 1,034 997 911 1,079
Household Products 627 650 656 627 677
Specialties and Others 885 927 809 688 890
Workforce (as at Dec. 31)
Seals and Vibration Control Technology 20,762 22,136 20,454 20,757 22,273
Nonwovens 5,575 5,550 5,455 5,010 5,020
Household Products 2,215 2,348 2,381 2,309 2,347
Specialties and Others 4,974 4,296 4,448 4,066 4,679
1)
The figures include all companies in which Freudenberg Co. owns 50 % or more of the capital. Shareholdings of 50 % are consolidated to half
the amount, shareholdings over 50 % in full. Companies in which Freudenberg Co. Kommanditgesellschaft directly or indirectly holds a majority
of the voting rights or has the right to determine financial and business policy in accordance with articles of association, statutes or contracts are
fully consolidated.
Freudenberg Group
Freudenberg is a family-owned group of companies active
on the global stage. Its 16 Business Groups operate on vari-
ous markets and in various sectors of industry.
Freudenberg offers its customers in the automotive, mechani-
cal and plant engineering, textile and clothing, construction,
mining and heavy industry, energy, chemical, oil and gas
sectors tailor-made, innovative technological products and
services. Customer groupings also include companies in the
medical technology, civil aviation, rail vehicles and semi-
conductor sectors.
Freudenberg develops and manufactures seals, vibration
control technology components, filters, nonwovens, surface
treatment products, release agents and specialty lubricants,
medical technology, and mechatronic products.
Freudenberg develops software solutions and IT services
primarily for small- and medium-sized enterprises. Final
users enjoy the benefits of Freudenberg’s state-of-the-art
household products marketed under the vileda®
, O’Cedar®
and Wettex®
brands.
Creativity, quality, diversity and innovative strength are
the company’s cornerstones. Reliability and responsible
conduct rank among the basic values of the company
which was founded over 160 years ago. Freudenberg is
committed to partnerships with customers, and believes
in a long-term orientation, financial solidity and the excel-
lence of over 34,000 associates in 59 countries around
the globe.
Freudenberg sees itself as an enterprising corporation.
Operative business is the responsibility of stand-alone
companies whose management conducts business auto
nomously. The individual companies belong to one of sev-
eral Business Groups. The executive bodies of the parent
company Freudenberg Co. Kommanditgesellschaft – the
Management Board, the Board of Partners, and the Part-
ners’ Meeting – have responsibilities similar to those of the
Executive Board, the Supervisory Board and the Sharehold-
ers Meeting in German corporations. The parent company’s
Corporate Functions control, coordinate and monitor the
activities of the Freudenberg Group and provide advice
and support to Business Groups. The Management Board
members are jointly responsible for the leadership of the
Freudenberg Group.
Freudenberg is a family company. It is owned by some
300 heirs to the founding father Carl Johann Freudenberg.
Household Products
Business Area
Business Group
Freudenberg
Household Products
Parent Company Freudenberg Co.
Nonwovens
Business Area
Business Group
Freudenberg
Nonwovens
Freudenberg Politex
Nonwovens
Freudenberg Filtration
Technologies
Specialties and Others
Business Area
Business Group
Freudenberg Chemical Specialities
Freudenberg NOK Mechatronics
Freudenberg IT
Freudenberg New Technologies
Division
Freudenberg Service Support
Freudenberg Real Estate Management
Seals and Vibration Control
Technology Business Area
Business Group
Freudenberg Seals and Vibra-
tion Control Technology Europe*
Freudenberg-NOK General
Partnership*
NOK-Freudenberg Group China
Vibracoustic
EagleBurgmann
Dichtomatik
Freudenberg Oil Gas**
Helix Medical**
Freudenberg Schwab**
* Brought together in Freudenberg Sealing Technologies Business Group effective January 1, 2011
** New Business Groups since January 1, 2011
4. Highlights
Freudenberg group 1)
2006 2007 2008 2009 2010
Sales [E million]
Germany 1,238 1,325 1,275 961 1,195
EU (excluding Germany) 1,661 1,839 1,768 1,440 1,639
Other European countries 242 271 235 186 236
North America 1,216 1,164 953 810 1,132
South/Central America 197 217 269 232 280
Asia 413 431 461 483 877
Africa/Australia 86 94 89 89 122
Total sales 5,053 5,341 5,050 4,201 5,481
Consolidated profit or loss 219 275 176 -250 322
Cash flow from operating activities 333 407 393 456 468
Cash flow from investing activities - 271 - 319 - 384 -195 -270
Depreciation and amortization 232 256 272 302 255
Balance sheet total 4,470 4,628 4,861 4,688 5,398
Equity 2,060 2,140 2,278 2,087 2,560
Personnel expenses 1,535 1,592 1,534 1,481 1,606
Workforce (as at Dec. 31) 33,526 34,330 32,738 32,142 34,319
Workforce (annual average) 33,542 35,060 33,569 31,616 34,200
Business Areas 2006 2007 2008 2009 2010
Sales [E million]
Seals and Vibration Control Technology 2,788 3,008 2,846 2,226 3,112
Nonwovens 1,017 1,034 997 911 1,079
Household Products 627 650 656 627 677
Specialties and Others 885 927 809 688 890
Workforce (as at Dec. 31)
Seals and Vibration Control Technology 20,762 22,136 20,454 20,757 22,273
Nonwovens 5,575 5,550 5,455 5,010 5,020
Household Products 2,215 2,348 2,381 2,309 2,347
Specialties and Others 4,974 4,296 4,448 4,066 4,679
1)
The figures include all companies in which Freudenberg Co. owns 50 % or more of the capital. Shareholdings of 50 % are consolidated to half
the amount, shareholdings over 50 % in full. Companies in which Freudenberg Co. Kommanditgesellschaft directly or indirectly holds a majority
of the voting rights or has the right to determine financial and business policy in accordance with articles of association, statutes or contracts are
fully consolidated.
Freudenberg Group
Freudenberg is a family-owned group of companies active
on the global stage. Its 16 Business Groups operate on vari-
ous markets and in various sectors of industry.
Freudenberg offers its customers in the automotive, mechani-
cal and plant engineering, textile and clothing, construction,
mining and heavy industry, energy, chemical, oil and gas
sectors tailor-made, innovative technological products and
services. Customer groupings also include companies in the
medical technology, civil aviation, rail vehicles and semi-
conductor sectors.
Freudenberg develops and manufactures seals, vibration
control technology components, filters, nonwovens, surface
treatment products, release agents and specialty lubricants,
medical technology, and mechatronic products.
Freudenberg develops software solutions and IT services
primarily for small- and medium-sized enterprises. Final
users enjoy the benefits of Freudenberg’s state-of-the-art
household products marketed under the vileda®
, O’Cedar®
and Wettex®
brands.
Creativity, quality, diversity and innovative strength are
the company’s cornerstones. Reliability and responsible
conduct rank among the basic values of the company
which was founded over 160 years ago. Freudenberg is
committed to partnerships with customers, and believes
in a long-term orientation, financial solidity and the excel-
lence of over 34,000 associates in 59 countries around
the globe.
Freudenberg sees itself as an enterprising corporation.
Operative business is the responsibility of stand-alone
companies whose management conducts business auto
nomously. The individual companies belong to one of sev-
eral Business Groups. The executive bodies of the parent
company Freudenberg Co. Kommanditgesellschaft – the
Management Board, the Board of Partners, and the Part-
ners’ Meeting – have responsibilities similar to those of the
Executive Board, the Supervisory Board and the Sharehold-
ers Meeting in German corporations. The parent company’s
Corporate Functions control, coordinate and monitor the
activities of the Freudenberg Group and provide advice
and support to Business Groups. The Management Board
members are jointly responsible for the leadership of the
Freudenberg Group.
Freudenberg is a family company. It is owned by some
300 heirs to the founding father Carl Johann Freudenberg.
Household Products
Business Area
Business Group
Freudenberg
Household Products
Parent Company Freudenberg Co.
Nonwovens
Business Area
Business Group
Freudenberg
Nonwovens
Freudenberg Politex
Nonwovens
Freudenberg Filtration
Technologies
Specialties and Others
Business Area
Business Group
Freudenberg Chemical Specialities
Freudenberg NOK Mechatronics
Freudenberg IT
Freudenberg New Technologies
Division
Freudenberg Service Support
Freudenberg Real Estate Management
Seals and Vibration Control
Technology Business Area
Business Group
Freudenberg Seals and Vibra-
tion Control Technology Europe*
Freudenberg-NOK General
Partnership*
NOK-Freudenberg Group China
Vibracoustic
EagleBurgmann
Dichtomatik
Freudenberg Oil Gas**
Helix Medical**
Freudenberg Schwab**
* Brought together in Freudenberg Sealing Technologies Business Group effective January 1, 2011
** New Business Groups since January 1, 2011
5. Contents
2 Board of Partners, Management Board
3 Management of the Business Groups and Divisions
4 Report of the Board of Partners
6 Foreword of the Management Board
10 Management Report of the Freudenberg Group
13 Sales and Earnings Position of the Group
14 Financial Position and Net Assets of the Group
18 Review of Operations by Business Area
46 Research and Development
47 Human Resources
48 Responsible Conduct
51 Post-reporting Date Events
51 Risk Report
54 Outlook
Financial Report – Consolidated Financial Statements
60 Consolidated Statement of Financial Position
61 Consolidated Income Statement
62 Consolidated Statement of Comprehensive Income
63 Consolidated Statement of Cash Flows
64 Consolidated Statement of Changes in Equity
65 Notes to the Consolidated Financial Statements
111 Shareholdings of the Freudenberg Group
123 Independent Auditor’s Report
6. Company Boards
2
Management Board
Dr. Dr. Peter Bettermann, Weinheim
Speaker
General Partner
Christoph Mosmann, Mannheim
(from July 1, 2010)
Dr. Mohsen Sohi, Frankfurt
General Partner
(from May 1, 2010)
Jörg Sost, Neustadt an der Weinstraße
General Partner
(until June 30, 2010)
Dr. Martin Stark, Weinheim
General Partner
Board of Partners*
Dr. Wolfram Freudenberg, Stuttgart
Chairman of the Board of Partners
Entrepreneur
Dr. Michael Rogowski, Heidenheim
Deputy Chairman of the Board of Partners
Chairman of the Supervisory Board of Voith AG
(until March 2010)
Chairman of the Foundation Council
of Hanns-Voith-Stiftung
(from April 2010)
Prof. Dr. Hans Christian von Baeyer
Williamsburg, Virginia, USA
Emeritus Professor of Physics
Dr. Ulrich Freudenberg, Mülheim an der Ruhr
Businessman
Dr. Maria Freudenberg-Beetz, Weinheim
Biologist
Dr. Mathias Kammüller, Ditzingen
Managing Partner
TRUMPF GmbH + Co. KG
Dr. Dieter Kurz, Oberkochen
President and CEO of Carl Zeiss AG
Dr. Christoph Schücking, Frankfurt am Main
Attorney and Notary Public
Prof. Dr. Wilhelm Simson, Munich
Former CEO of E.ON AG
Mathias Thielen, Zurich, Switzerland
Chief Financial Officer
GE Money Bank AG Switzerland
Dr. Emanuel Towfigh, Bonn
Senior Research Fellow at Max-Planck-Institut
and Attorney
Martin Wentzler, Großhesselohe
Attorney
7. 3
Management Business Group
Division
Claus Möhlenkamp (Chairman),
Dr. Arman Barimani, Ludger Neuwinger-Heimes
Freudenberg Seals and Vibration
Control Technology Europe
Dr. Mohsen Sohi (President CEO, until April 30, 2010),
Dr. Ralf Krieger (Speaker since May 1, 2010),
Dr. Michael Heidingsfelder (from May 1, 2010),
Yoshindo Masumoto (from July 1, 2010),
Brad Norton (from May 1, 2010)
Freudenberg-NOK General
Partnership
Dr. Frank Heislitz (Co-General Manager),
Kuni Hayashida (Co-General Manager, until June 30, 2010),
Naohito Sakai (Co-General Manager, from July 1, 2010)
NOK-Freudenberg Group China
Hans-Jürgen Goslar (Chairman), Norbert Schebesta Vibracoustic
Christoph Mosmann (Chairman),
Dr. Walter Steinbach, Jochen Strasser
EagleBurgmann
Ludger Patt (Chairman), Thomas Hahn (from July 1, 2010), Thomas Herr Dichtomatik
Bruce R. Olson (Chairman), Thomas Reibelt, Dr. René Wollert Freudenberg Nonwovens
Dr. Riccardo Sollini (President CEO),
Dr. Riccardo Forni, Dr. Rocco Marsico
Freudenberg Politex Nonwovens
Dr. Jörg Sievert (Chairman), Dr. Andreas Kreuter Freudenberg Filtration Technologies
Dr. Klaus Peter Meier (Chairman), Volker Christ, Arndt Miersch Freudenberg Household Products
Hanno D. Wentzler (Chairman), Dr. Jörg Matthias Großmann Freudenberg Chemical Specialities
Bruno Conrath (Speaker), Ludwig Neumann Freudenberg NOK Mechatronics
Michael Fichtner (Speaker), Dr. Jan Haaß (until April 30, 2010),
Jörg Vierfuß (from May 1, 2010), Dieter Kull (from October 1, 2010)
Freudenberg IT
Dr. Jörg Böcking Freudenberg New Technologies
Dr. Ulf Kürschner (Speaker), Volker Kübler (from May 1, 2010),
Jörg Vierfuß (until April 30, 2010)
Freudenberg Service Support
Martin Obermüller (Speaker), Gerhard Freiwald, Dr. Dirk Mahler,
Wolfgang Scheffler (until July 29, 2010), Gerhard Schmitt
Freudenberg Real Estate
Management
* as at December 31, 2010
Management of the Business Groups and Divisions*
8. Report of the Board of Partners
During the 2010 financial year, the Management Board and the Board of Partners held regular and detailed
discussions on the progress of the company, its Business Groups and Divisions and major individual business
transactions on the basis of oral and written reports from the Management Board. Business policy was agreed
in consultation between the two bodies and updated where necessary in joint deliberations. Five meetings of
the Board of Partners were held in the 2010 financial year.
In close consultation with the Management Board, the consequences of the economic and financial crisis
were examined and conclusions drawn from the crisis, which was successfully overcome. The Board of Partners
was actively involved in all major portfolio decisions. In the 2010 financial year, this related in particular to
the purchase of shares in VistaMed Ltd., Carrick-on-Shannon, Ireland, the purchase of all remaining shares
in Freudenberg Schwab GmbH, Hennigsdorf, Germany, and in Schwab Schwingungstechnik AG, Adliswil,
Switzerland, as well as the purchase of SurTec International GmbH, Zwingenberg, Germany. The Board of
Partners was also involved in the sale of the cylinder head and exhaust system gasket business for automotive
OEMs and the vendor-specific aftermarket to ElringKlinger AG, Dettingen an der Erms, Germany.
At the recommendation of the Management Board, the Board of Partners set up an Ombuds Office as the point
of contact for all associates in the Group wishing to report any potential infringement of Corporate principles.
This may relate to a violation of the Guiding Principles or legal provisions, to cases of discrimination or to
situations involving serious conflicts among colleagues. The Ombuds Office reports once a year to the Personnel
Committee of the Board of Partners.
The Board of Partners participated in the ongoing decision-making process concerning the strategic orientation
of Business Groups and issues such as electro-mobility, and drafted guidelines for the new strategy period 2012
to 2015.
The Board of Partners furthermore set up a working group to review the Freudenberg Group’s company law
and tax law structures. In addition, the Board of Partners coordinated intensive liaison with Partners in the form
of various information events and regional meetings, for example in the USA and the United Kingdom.
The Audit Committee met twice in the 2010 financial year, the Personnel Committee met four times. Dr. Mohsen
Sohi joined the Management Board on May 1, 2010, and has been a General Partner since July 1, 2010.
Dr. Sohi was formerly President CEO of Freudenberg-NOK General Partnership, Plymouth, Michigan, USA.
Christoph Mosmann also joined the Management Board as a further new member on July 1, 2010. He was
Chairman of EagleBurgmann, Wolfratshausen, Germany, until December 31, 2010. Jörg Sost stepped down
from the Management Board as General Partner effective June 30, 2010 to take retirement. He had been a
member of the Management Board since July 1, 2005. We would like to thank Mr. Sost for his dedication and
many years of successful service to the company.
4
9. The Consolidated Financial Statements and the Management Report for 2010 were audited by Ernst Young
GmbH Wirtschaftsprüfungsgesellschaft, Mannheim, Germany, and were approved without reservation.
The Board of Partners approved the Consolidated Financial Statements and the Management Report of
the Freudenberg Group and the annual financial statements of Freudenberg Co. Kommanditgesellschaft,
Weinheim, Germany, and, following examination, concurred with the auditor’s findings.
The Board of Partners expresses its thanks to all employees, the Management Board and the Business Group
managing bodies. Their commitment and dedication have made an important contribution to the success of
the Group.
Weinheim, April 1, 2011
For the Board of Partners
Dr. Wolfram Freudenberg
Chairman
5
10. Foreword of the Management Board
The upswing that started during the second half of 2009 and gathered pace in 2010 happened almost as
swiftly as the downturn which sent the global economy into its worst crisis since the Second World War at
the end of 2008 and in 2009. Driven by strong economic development in the automotive sector and growing
momentum in many other sectors of industry during the course of the year, 2010 was a positive year for the
Freudenberg Group. The booming economies in Asia and South America in particular generated an above-
average stimulus for growth.
Even though this positive trend was very pleasing, the rapid switch from producing at a reduced level in the
crisis to handling a strong-growth scenario presented a challenge for almost all sections of the company.
For a time, many sites were operating to their capacity limits. Moreover, the rapid and erratic demand increase
could often only be dealt with by even greater flexibility. In this situation Freudenberg reaped the benefits of
having deployed instruments such as short-time work during the crisis. Bottlenecks at suppliers and raw material
prices that rose significantly during the course of the year were further clear indications of an exceptionally swift
economic recovery.
Freudenberg derived significant benefits from higher demand in many areas. Not only was the 2009 slump
in sales entirely offset; at €5,481.4 million, sales even surpassed the 2008 level. The cost-cutting measures
initiated during the crisis and the improved working capital management impacted positively on profit. Profit
from operations increased €592.2 million to €430.6 million, well above the 2008 level. The systematic cash
management implemented in 2009 continued in 2010 as well. Free cash flow totaled €198.3 million in the
year under review despite more active investment and a sharp sales-driven rise in receivables. With an equity
ratio of 47.4 percent Freudenberg has preserved its very good equity base.
Our rating also reflects these positive developments. Moody’s raised the outlook for the Baa1 rating to “stable”.
Freudenberg laid important organizational foundations for future business in 2010 which took effect on
January 1, 2011. Freudenberg’s classic sealing business, formerly operated on a regional basis by the
Freudenberg Seals and Vibration Control Technology Europe Business Group for Europe and the Freudenberg-
NOK General Partnership Business Group for North and South America, has been brought together under
the umbrella of the new Freudenberg Sealing Technologies Business Group. A global organizational structure
for the Vibracoustic and Dichtomatik Business Groups already came into effect in mid-2010.
Preparations were also made to establish the stand-alone Business Groups for the future growth areas of oil and
gas (Freudenberg Oil Gas), medical technology (Helix Medical) and rail (Freudenberg Schwab) which came into
effect on January 1, 2011. All three areas were further strengthened in the 2010 financial year through strategic
acquisitions and organic growth. The intensified commitment on high-growth Asian markets was also continued.
6
11. 2010 was a special year for Freudenberg not only with regard to the surprisingly positive economic devel-
opments and the strategic milestones. The Group also celebrated landmark anniversaries with its two Japa-
nese partner companies NOK Corporation and Japan Vilene Company Ltd., both headquartered in Tokyo.
Freudenberg has enjoyed a close partnership with both Japanese companies spanning 50 years, testifying
to the success of the partners’ long-term approach. We will continue to foster and further develop these
partnerships.
Turning to 2011, our mood is one of cautious optimism despite the good order situation for the coming months.
Although the outlook is positive, we must remain vigilant because the pleasing developments in the world’s
growth regions contrast with structural problems in many mature economies. High national debt and high
unemployment in many countries along with continuing problems on financial markets bring significant risks
for economic development which we must continue to monitor. This is compounded by sharp rises in the price
of energy and materials similar to the hikes of 2007 and 2008. We will continue our adopted course of high
operating flexibility and solid balance sheet indicators and will do everything we can to preserve and extend
the improvements made during the economic crisis.
It is largely due to the dedication and flexibility of our associates that we were able to make the swift transition
from very subdued business in many areas in 2009 to rapid growth in 2010. We would therefore like to express
our warm appreciation to all employees.
Dr. Dr. Peter Bettermann Christoph Mosmann Dr. Mohsen Sohi Dr. Martin Stark
7
12. 8
Specialty lubricants in the Antarctic
It was a big challenge to come up with a special grease that remained pasty
despite the extremely low temperatures and low humidity. But we found a solution.
Dr. Wolfgang Sammer, Head of Corporate Development, Klüber Lubrication.
13. 9
It is one of the coldest places on Earth. The French-Italian scientific research station Dome Concordia is located on the
plateau of East Antarctica, 3,500 meters above sea level. Even in the Antarctic summer, the temperature rarely rises
above minus 35 degrees Celsius. In winter, it drops to minus 80 degrees Celsius.
The rarefied atmosphere, the clean and dry air, little wind and little light pollution make this inhospitable place ideal for
astronomical observation. That is why the Bremerhaven-based Alfred Wegener Institute for Polar and Marine Research
installed a robotic observatory there. The scientists in Bremerhaven can control the observatory located more than
16,000 kilometers to the south by the touch of a button. Given the sub-zero temperatures, that is a pretty difficult exercise
and places the highest demands on material, electronics, motors, gears and all other components.
The Freudenberg subsidiary Klüber Lubrication provided Baader Planetarium, the company that built the station, with a
special grease that was the only one of many products tested which proved suitable for use under such extreme condi-
tions. All the moving parts are lubricated – gearboxes, actuators, guide rollers and seals. Klüber Lubrication guarantees
lifetime lubrication of at least five years for the approximately 200 lubricating points. This dispenses with the need
for maintenance or relubrication during this period. And that is just as well, because expeditions to the South Pole are
expensive and almost impossible during the Antarctic winter months between February and November.
14. 1010
In the 2010 financial year, the Freudenberg Group
reported sales of €5,481.4 million (previous year:
€4,200.8 million), representing a year-on-year
increase of €1,280.6 million or 30.5 percent. The
Group reported a consolidated profit of €321.7 million
(previous year: €-249.6 million). At December 31,
2010, the Group’s workforce totaled 34,319 employees
(previous year: 32,142 employees).
Matters of particular significance in the 2010
financial year
The measures such as focused cash management,
rationalization, increased flexibility and capacity
adjustments initiated at the end of 2008 and during
2009 to counter the economic and financial crisis
were systematically continued in 2010; as a result,
Freudenberg derived significant benefits from the
economic upswing.
The restructuring process at Freudenberg Anlagen-
und Werkzeugtechnik GmbH, Laudenbach, Germany,
begun in 2009 was brought to a conclusion. Parts
of the company were integrated in the Freudenberg
Seals and Vibration Control Technology Europe and
Vibracoustic Business Groups, the mechanical engi-
neering and special tools activities and parts of the
production systems business were sold to AWETIS
Engineering + Manufacturing GmbH, Munich, Ger-
many. Effective June 30, 2010, the minority sharehold-
ing in Freudenberg Mektec Europa GmbH, Erkelenz,
Germany, was transferred to the long-standing joint
venture partner NOK Corporation, Tokyo, Japan. In
addition, preparations were made for the sale of the
cylinder head and exhaust system gasket business for
automotive OEMs and the vendor-specific aftermarket
to ElringKlinger AG, Dettingen an der Erms, Germany.
The transfer was effected at the beginning of 2011.
Commitment in regional and sectoral markets of
the future was systematically continued in 2010.
Management Report of the Freudenberg Group
The medical technology sector was strengthened,
firstly through the purchase of a 50 percent share
in VistaMed Ltd., Carrick-on-Shannon, Ireland, and
secondly by the commissioning by Helix Medical
Europe KG, Kaiserslautern, Germany, of a pilot
plant for silicone sealing rings in Kaiserslautern.
Further progress was made in the oil and gas busi-
ness through the founding of TOO Freudenberg Oil
Gas, Atyrau, Kazakhstan, and the acquisition of
Offshore Seals (Asia) Pte. Ltd., Singapore, a company
specializing in seals for the oil and gas industry. The
Freudenberg Seals and Vibration Control Technology
Europe Business Group took over all the shares of the
long-standing joint venture partner Schwab Holding
AG, Zug, Switzerland, in Schwab Schwingungstech-
nik AG, Adliswil, Switzerland, and in Freudenberg
Schwab GmbH, Hennigsdorf, Germany, with a view
to further developing vibration engineering activities
for rail vehicles.
In the automotive vibration engineering sector,
Vibracoustic took over all the shares of the joint
venture partner Anvis Netherlands B.V., Venlo,
Netherlands, and became the sole shareholder of
Vibracoustic do Brasil Ltda., Taubaté-SP, Brazil. In
October, Vibracoustic opened a plant in Yantai,
China, to produce vibration engineering components
and commercial vehicle air springs for the Chinese
automotive industry.
In Australia, Freudenberg Filtration Technologies
acquired a majority share in Micro Fresh Filters
(Aust.) Pty. Ltd., Braeside, Australia. The company
specializes in manufacturing filters for vehicles
and machines used in the mining industry and now
operates under the name of Freudenberg Filtration
Technologies (Aust) Pty. Ltd. In addition, Freudenberg
Household Products concluded a partnership agree-
ment with the Spanish plastics specialist SpBerner
Plastic Group S.L., Valencia, Spain. A sales coopera-
tion in Spain and Portugal and two joint ventures
in the USA have already been set up under this
15. 11
agreement. SurTec International GmbH, a surface
technology company headquartered in Zwingen-
berg, Germany, was acquired to strengthen the
Freudenberg Chemical Specialities Business Group.
SurTec supplies products and solutions for surface
treatment and electroplating.
Global economic situation
The global economy made a marked recovery in
2010 after the severe recession of the previous year.
This positive trend is to a significant extent attribut-
able to economic stimuli introduced by national gov-
ernments and central banks. Following a timid start
to the year, there was a strong surge in global gross
domestic product, particularly in the second quarter
of 2010. Momentum faltered somewhat during the
second half of the year as government economic
programs expired and given the stronger prior-year
figures, but the upward trend continued unbroken. In
terms of the aggregate economy, the main drivers for
economic growth were industrial production and for-
eign trade, while in terms of geographic regions, the
main impetus again came from the emerging econo-
mies, led by China. Global gross domestic product
for the full year rose by 5.0 percent year-on-year.
Given the weak prior-year figures, almost all national
economies reported economic growth in excess
of the long-term average in 2010: Chinese gross
domestic product grew 10.3 percent, in India the
growth rate was 9.0 percent. The Japanese economy
recorded 4.3 percent growth, the rise in South Korea
was 6.1 percent. Brazil (7.5 percent) and Argentina
(8.0 percent) also recorded above-average growth.
In contrast, the eurozone only grew 1.8 percent and
presented a very mixed picture: At 3.6 percent,
growth in Germany was well above average, but
the other countries lagged quite significantly behind.
At 2.9 percent, economic growth in the USA was in
keeping with the long-term average.
Key sales sectors for the Freudenberg Group made a
robust recovery in 2010 having weathered the crisis:
There was a marked rise in global demand for new
cars. While there had been strong demand for small
vehicles in 2009, mainly as a result of the scrapping
premiums, the premium segment showed increasing
signs of recovery in 2010. There was a massive surge
in the number of new car registrations in China in
particular, where full-year growth ran at some
34.0 percent. There were also significant rises in
Japan (7.0 percent), the USA (11.0 percent) and Brazil
(11.0 percent). The EU-5 countries (Germany, France,
Italy, United Kingdom and Spain), on the other hand,
saw new car registrations contract by 9.6 percent,
mainly as a result of a sharp drop in demand in
Germany (- 23.0 percent).
The international mechanical and plant engineering
sector gathered momentum as 2010 progressed,
although there were regional and segment-specific
differences, some of them quite significant. Overall,
global sales grew by 17.0 percent year-on-year.
The textile and clothing industry continued to relocate
to China, where production in 2010 grew 11.6 per-
cent, while the recovery in the 27 EU Member States
(1.4 percent), the USA (5.3 percent) and Japan
(1.8 percent) was relatively muted.
While the construction industry survived the global
economic crisis in pretty good shape, 2010 brought a
drop in production in many regions. The main excep-
tion was China, where the construction industry at
times even showed signs of overheating.
Following a slight dip in 2009, medical technology
returned to growth in 2010. Unlike previous years,
however, momentum was only slightly higher than in
other sectors.
The German electrical and electronics industry made a
marked recovery in 2010. The upswing in the German
Management Report
16. 12
chemical industry was even stronger, with this sector
already returning to the pre-crisis level at the end of
2010.
Raw material prices were pushed up quite consid-
erably in 2010 as a result of the global economic
recovery and the ensuing rise in demand. The annual
average price for crude oil was 28 percent above the
prior-year level. There were at times quite significant
fluctuations in the euro (EUR)/dollar (USD) exchange
rate during the year, although the rate rallied strongly
towards the end of the year. The annual average
exchange rate was 1.32 USD/EUR, again down on
the prior-year level (1.39 USD/EUR).
Products and markets
There were only minor shifts in the Freudenberg
sales structure by sectors in 2010. With a share of
33 percent that remained unchanged year-on-year,
the automotive industry is still by far the most impor-
tant customer grouping for the Freudenberg Group,
followed by the mechanical and plant engineering
industry, where the share rose from 14 to 16 percent.
The share of products retailed to final users accounts
for 13 percent of sales (previous year: 15 percent).
Other major customer groupings are the energy,
water and chemical sector (seven percent), the textile
and clothing industry (six percent), the construction
industry (five percent) and the medical and pharma-
ceutical industry (three percent). The share of sales
attributable to the spare parts business runs at a
steady six percent.
There was a marked shift in the breakdown of
Freudenberg sales by regions. The share of sales gen-
erated in Asia in particular rose significantly from 12
to 16 percent. The share of sales generated in North
America also rose last year from 19 to 21 percent.
In contrast, the share of sales generated in the EU
(excluding Germany) declined from 34 to 30 percent.
There was a slight drop of one percentage point in the
share of sales generated in Germany (22 percent) and
in South and Central America (five percent).
Consolidated group
At year-end 2010, the number of companies in the
Freudenberg Group totaled 480 located in 59 coun-
tries. 422 of these companies were included in the
consolidation. 383 companies, including 123 produc-
tion and 149 sales companies, were fully consolidated.
Minority interests and joint ventures
Freudenberg holds a minority interest, either direct or
via subsidiaries, in several companies, most of which
are consolidated under the equity method. The most
important minority shareholdings held by Freudenberg
concern the Japanese companies NOK Corporation
and Japan Vilene Company Ltd. (JVC), both Tokyo,
where Freudenberg holds an interest of approximately
25 percent in the former and an interest of 28 percent
in the latter company.
The NOK Group manufactures and supplies sealing
products, flexible printed circuits, roll products for
office equipment and further products such as specialty
lubricants. At the reporting date of March 31, 2010,
the company employed 36,802 associates. In the last
financial year, NOK Group sales declined by 3.0 per-
cent (€97.5 million) to €3,170.5 million. Adjusted
for the changes in currency parities, sales fell by
11.1 percent.
The JVC Group manufactures nonwovens for the
clothing, automotive, electrical and consumer goods
industries as well as for applications in the medical
sector and filtration. Production facilities are located in
China, Japan, South Korea, Taiwan, Thailand and the
USA. The JVC Group employed 1,530 associates as at
Sales structure by sectors
[%]
Final users 13
Other industry sectors 11
Mechanical and
plant engineering 16
Energy, water and
chemical 7
Medical and
pharmaceutical 3
Textile and clothing 6
Construction 5
Spare parts
business 6
Automotive
OEMs 33
Sales by regions
[%]
Germany 22Africa/Australia 2
Asia 16
South/Central
America 5
North America 21
EU (excluding
Germany) 30
Other European
countries 4
17. 13Management Report – Sales and Earnings Position of the Group
March 31, 2010. Sales fell by €1.4 million (0.4 percent)
year-on-year to €350.4 million. Adjusted for changes
in currency parities, sales fell by 8.8 percent.
The two Japanese minority interests are consolidated
on the basis of the interim financial statements as at
December 31, 2010.
The 50th anniversary of the partnership between
Freudenberg and these two Japanese companies was
celebrated during the year under review. Numerous
activities in the USA, Asia and Europe have been
jointly established during the course of the decades-
long partnership. More recent examples include setting
up the NOK-Freudenberg Group China Business
Group and opening a joint JVC-Freudenberg produc-
tion facility in Thailand.
In India, Freudenberg cooperates with Sigma Corpora-
tion India Limited, New Delhi, and NOK Corporation
in the field of seals and vibration control technology.
Business activities developed well.
Sales and Earnings Position of the Group
Record high for sales and earnings
In the 2010 financial year, the Freudenberg-Group
reported sales of €5,481.4 million, thereby achiev-
ing a new record. Sales were €1,280.6 million or
30.5 percent higher than for the crisis-ridden prior
year. Adjusted for the effects of acquisitions and
disinvestments to the amount of €292.4 million and
exchange rate conversion effects, sales were 18.7 per-
cent higher than the prior year. Sales increased in all
Business Areas.
There was a disproportionately high rise of
€592.2 million in profit from operations to €430.6 mil-
lion. This was chiefly attributable to the increase in
contribution margins as a result of higher sales. Further-
more, restructuring expenses to the amount of approxi-
mately €183 million impacted the prior-year result.
The success of these measures, the majority of which
were initiated at the end of 2008 and in the first half
of 2009 and implemented in 2009/2010, also contrib-
uted significantly to the rise in earnings. Consolidated
profit improved by €571.3 million to €321.7 million.
Function costs were significantly higher than the prior
year in absolute terms, but declined relative to sales.
One main factor impacting the prior year was that
selling expenses and administrative expenses could
not be fully adjusted to lower business volumes. In
addition, restructuring measures led to improved cost
structures and an increase in contribution margins in
the year under review.
Sales development
[E million]
2006 2007 2008 2009 2010
6,000
5,000
4,000
3,000
2,000
1,000
5,481
4,201
5,053 5,050
5,341
Freudenberg Group
2009 2010
Sales [E million] 4,200.8 5,481.4
Consolidated profit/loss [E million] - 249.6 321.7
Profit/loss from
operations [E million] -161.6 430.6
Workforce 32,142 34,319
18. Financial Position and Net Assets
of the Group
Financing strategy
The parent company Freudenberg Co. Kommandit
gesellschaft, Weinheim, (Freudenberg Co.), is
responsible for all the financing activities of the
Freudenberg Group and also operates the cash
management system for the entire Group. The Group
companies obtain the financing they require via cash
pools or loans provided by the parent company or, in
some countries, in the form of bank loans guaranteed
by the parent company. Freudenberg Co. does
not expose itself to financial risk through speculation
with derivative financial instruments, but uses such
instruments only for hedging, and therefore reducing
interest rate and currency risks in connection with
underlying transactions.
The global economic and financial crisis which gener-
ated strong turbulence on credit and capital markets
continued to impact financing costs and options for
industrial companies. The Freudenberg Group is in
a good position to tackle these challenges thanks to
its conservative finance policy; the Group initiated
comprehensive steps to ensure high reserves of liquid
funds and committed credit lines with its core banks.
Cash flow from operating activities
Cash flow from operating activities for the 2010
financial year amounted to €468.1 million, repres
enting a year-on-year increase of €12.0 million or
2.6 percent. The improvement due to the stronger
profit was partly offset by the sales-driven rise in
working capital.
Cash flow from investing activities
The outflow of funds from investing activities in 2010
amounted to €269.8 million, €74.6 million higher
than the previous year (€195.2 million). Major invest-
ing activities included the new Freudenberg House-
hold Products plant in Aurora, Illinois, USA, and the
Vibracoustic plant in Yantai, China.
Cash flow from financing activities
Cash flow from financing activities in the 2010 finan-
cial year was negative at €-73.5 million (previous
year: €-150 million). This figure is almost exclusively
attributable to payments to Partners and minority
interests.
The Freudenberg Group can meet all of its payment
obligations at any time.
14
19. Management Report – Financial Position and Net Assets of the Group
Assets, equity and liabilities
Dec. 31, 2009 Dec. 31, 2010 Change
[€ million] [%] [€ million] [%] [%]
Assets
Intangible assets, tangible assets and
investment properties 2,098.7 44.8 2,168.3 40.2 3.3
Other non-current assets 697.0 14.9 886.0 16.4 27.1
Non-current assets 2,795.7 59.7 3,054.3 56.6 9.2
Inventories and current receivables 1,372.6 29.3 1,628.0 30.1 18.6
Other current assets 516.9 11.0 664.3 12.3 28.5
Current assets 1,889.5 40.3 2,292.3 42.4 21.3
Non-current assets held for sale and
disposal groups 2.3 0.0 51.7 1.0 2,147.8
4,687.5 100.0 5,398.3 100.0 15.2
Equity and liabilities
Equity 2,086.7 44.5 2,560.1 47.4 22.7
Long-term provisions 502.1 10.6 514.1 9.5 2.4
Other non-current liabilities 806.9 17.3 860.1 16.0 6.6
Non-current liabilities 1,309.0 27.9 1,374.2 25.5 5.0
Current liabilities 1,291.8 27.6 1,450.7 26.9 12.3
Liabilities in connection with non-current assets
held for sale and disposal groups 0.0 0.0 13.3 0.2 –
4,687.5 100.0 5,398.3 100.0 15.2
At €5,398.3 million (previous year: €4,687.5 million),
the total assets of the Freudenberg Group increased
by €710.8 million.
The rise in the balance sheet total is chiefly attributa-
ble to the increase in current assets, mainly as a result
of higher inventories and current receivables due to
the economic situation.
Other current assets also rose. This rise is chiefly
reflected in securities and cash at bank and in
hand. Net debt therefore declined year-on-year by
€129.4 million to €301.8 million.
In addition, exchange rate effects from developments
in the yen and positive results of associated compa-
nies led to a rise in non-current assets.
The equity ratio rose to 47.4 percent (previous year:
44.5 percent). This was almost exclusively due to the
positive result and exchange rate developments.
Dec. 31, 2009 Dec. 31, 2010 Change
[€ million] [€ million] [%]
Securities and
cash at bank
and in hand 503.1 647.6 28.7
Financial debt 934.3 949.4 1.6
Net debt 431.2 301.8 - 30.0
15
20. 16
The breakthrough came on October 15, 2010, after more than ten years of construction work, when the east bore of
the 57-kilometer Gotthard Tunnel through the Swiss Alps was completed. It was a historic milestone in a monumental
project. Once completed, the Gotthard Base Tunnel will be the world’s largest railway tunnel, doubling freight tonnage
on one of the key routes through the Alps and thereby significantly relieving the burden on road traffic.
If everything goes to plan and the first passenger and freight trains set off through the tunnel in 2017, travel time from
Zurich to Milan will be cut by more than one hour. The tunnel through the Alps is, quite literally, a groundbreaking
advancement in passenger and freight traffic.
The project would have been inconceivable without the state-of-the-art technology of Herrenknecht tunnel boring
machines. These gigantic machines that work round the clock are highly reliable, in part thanks to Freudenberg’s large-
diameter seals which make sure no rock, sand or water enters the main bearing. At the same time, they stop gear
oil from escaping. Merkel Freudenberg Fluidtechnic developed special seals for this purpose. The profile, materials
and production methods used on these shaft seals are designed to withstand the permanent stresses caused by hard
excavated materials and strong vibrations. Even over periods lasting several years. Given the tight time schedule and
extremely high costs in the event of machine failure, reliability has the highest priority.
Giant seals for a monumental tunnel
21. 17
The sealing points are subjected to extremely high stresses during tunnel boring. Our
seals have already proved they can meet this challenge in hundreds of tunnel projects.
Susanne Nolting, production operative, Merkel Freudenberg Fluidtechnic.
22. 18
Freudenberg Seals and Vibration Control
Technology Europe
As a technology specialist, Freudenberg Seals and
Vibration Control Technology Europe is a supplier
and development partner for customers in the auto-
motive industry, mechanical engineering, process
technology, the food and pharmaceutical industry,
agricultural and construction machinery, rail vehicles
and numerous other sectors. Since developing the
Simmerring® in 1929, Freudenberg has gone from
strength to strength with a unique and ever expand-
ing range of sealing products. Regardless of whether
the project involves customized individual solutions
or complete sealing packages for complex specifica-
tions – success is based on in-depth process know
ledge, innovative development methods and the high-
est quality materials.
Together with the partners NOK Corporation, Japan,
Freudenberg-NOK General Partnership, the Ameri-
cas, Sigma Corporation India Limited, India, and
NOK-Freudenberg Group China, Freudenberg Seals
and Vibration Control Technology Europe has estab-
lished a global network of production and sales com-
panies. The partnership in Europe and the Americas
was given an organizational framework effective
January 1, 2011, when a joint Management Board
assumed responsibility for leading the business of
the new Freudenberg Sealing Technologies Business
Group in these two regions.
18
REview of Operations by Business Area
Freudenberg’s activities are broken down into the
four Business Areas of Seals and Vibration Control
Technology, Nonwovens, Household Products, and
Specialties and Others.
Seals and Vibration Control Technology
Business Area
In the 2010 financial year, the Seals and Vibration
Control Technology Business Area comprised the fol-
lowing six Business Groups: Freudenberg Seals and
Vibration Control Technology Europe, Freudenberg-
NOK General Partnership, NOK-Freudenberg Group
China, Vibracoustic, EagleBurgmann and Dichtomatik.
From 2011 the Freudenberg Seals and Vibration
Control Technology Europe and Freudenberg-NOK
General Partnership Business Groups will be brought
together under the organizational umbrella of the new
Freudenberg Sealing Technologies Business Group.
In addition, the newly-established Freudenberg
Oil Gas, Helix Medical and Freudenberg Schwab
Business Groups will be assigned to this Business
Area. Roughly three quarters of sales in this Business
Area were generated by the automotive industry
and the mechanical and plant engineering industry
in 2010. These sectors, like other customer sectors,
developed well. Consequently, sales in this Busi-
ness Area rose to €3,112.0 million (previous year:
€2,225.5 million). The headcount at year-end rose
to 22,273 (previous year: 20,757).
Freudenberg Seals and Vibration Control Technology Europe
2009 2010
Sales [E million] 825.8 1,076.6
Workforce 7,607 8,112
23. 1919Management Report – Review of Operations by Business Area
Products and services
Simmerrings, membranes, high-precision moldings,
bellows, dust caps, hydraulic accumulators, O-rings,
hydraulic and pneumatic seals, frame gaskets,
silicone seals, shock absorbers, valve stem seals,
special seals, brake components, vibration control
technology for the general industry sector.
Production locations
Austria, Czech Republic, France, Germany, Hungary,
Italy, Spain, Turkey, UK
Freudenberg Dichtungs- und Schwingungstechnik GmbH Co. KG
69465 Weinheim | Germany
Phone: +49 (0) 6201 80-6666
Fax: +49 (0) 6201 88-6666
E-mail: info@freudenberg-ds.com
www.freudenberg-ds.com
Freudenberg Seals and Vibration Control Technology
Europe reported a very satisfactory year in 2010.
The Business Group benefited from the strong rise in
demand from customers in all sectors. In addition, the
comprehensive restructuring measures initiated during
the 2009 crisis year impacted positively on break-
even and therefore on profit. Sales by the Business
Group in 2010 rose by 30.4 percent to €1,076.6 mil-
lion (previous year: €825.8 million). All sales chan-
nels and divisions contributed to the growth in sales.
At 8,112, the headcount at year-end 2010 was also
well above the prior-year level (previous year: 7,607).
The unexpectedly swift rise in demand from customers
called for great flexibility on the part of associates,
employee representatives and management during
the year under review. Associates had to switch from
short-time work to overtime and weekend shifts in
record time. This was accomplished very successfully
at all sites.
The automotive and component supplier industry
already showed the first signs of recovery during the
last quarter of 2009. Since then, demand from car
makers, and in particular the major component sup-
pliers, has risen steadily. The fact that Freudenberg’s
development activities continued unabated during the
economic crisis proved very worthwhile. The energy-
saving sealing concept called LESS (Low Emission
Sealing Solutions) has met with a positive response
from automotive customers. There was a marked
recovery in commercial vehicle business, where sales
returned to the 2008 level following the slump of
2009.
There was also a significant increase in demand in
mechanical engineering and other sectors of indus-
try served by the Freudenberg Simrit sales channel.
Growth was strongest in Germany, Scandinavia,
Italy, Eastern Europe and Russia. Customer support in
the form of global key accounts proved very effec-
tive. Demand from heavy industry was also positive.
Corteco, the sales channel for the independent auto-
motive aftermarket, also reported a very good year.
Effective January 1, 2011, the activities of Freudenberg
Seals and Vibration Control Europe and Freudenberg-
NOK General Partnership, which continue to operate
as independent legal entities, were brought together
under the umbrella of the new Freudenberg Sealing
Technologies Business Group. This new management
structure is designed to ensure that customer demands
are served worldwide even more effectively and new
markets and customers are jointly accessed. Follow-
ing the sale of the cylinder head and exhaust gasket
business to ElringKlinger AG at the turn of the year,
Freudenberg Sealing Technologies now has the task
of reinforcing and strategically expanding the tradi-
tional sealing business.
24. 20
Freudenberg-NOK General Partnership
Freudenberg-NOK General Partnership is a joint
venture between Freudenberg and NOK Corpora-
tion. The Business Group focuses on its competen-
cies in sealing and elastomeric technologies. As the
American partner within the sealing business network
of Freudenberg and NOK, the joint venture integrates
Japanese, German as well as American technology
to serve customers with global products of the same
quality.
By extending its technology expertise beyond the
automotive market, Freudenberg-NOK General Part-
nership also provides an extensive portfolio to the
machining and civil aviation industries as well as the
fluid power, marine, off-highway equipment, recrea-
tional, oil and gas, and semiconductor markets.
The Plymouth, Michigan, USA, location is home to
the technical development center, where extensive
sealing testing activities are conducted for the North
American market.
Products and services
Sealing packages for engines, transmissions, brakes,
axles and steering units; components; all rubber,
plastic and PTFE components for suspension; electri-
cal and fuel systems; and other sealing solutions for
applications in a variety of industries.
Production locations
Brazil, Canada, Mexico, USA
Freudenberg-NOK General Partnership
47690 East Anchor Court
Plymouth, Michigan 48170 - 2455 | USA
Phone: +1 734 451 0020
Fax: +1 734 451 0043
E-mail: sao@fngp.com
www.freudenberg-nok.com
Freudenberg-NOK General Partnership, a joint
venture in which Freudenberg holds a 75 per-
cent share and NOK Corporation a 25 percent
share, is responsible for the sealing technology
business in the Americas. Total sales in 2010
were US $798.7 million, representing a year-
on-year increase of 14.9 percent (previous year:
US $695.4 million). Due to exchange rate effects,
there was a more pronounced increase of 22.4 per
cent in sales expressed in euros, which ran at
€604.5 million (previous year: €493.7 million).
Adjusted for the mid-year carve-out of the Helix
Medical, Vibracoustic and Dichtomatik businesses, the
increase in sales is 29.8 percent. Sales development
was supported by the global economic and financial
improvements. North American vehicle production
rose by 38.3 percent. Key markets in the general
industry sector also improved. Overall, Freudenberg-
NOK General Partnership sales exceeded market
recovery in 13 of 15 principal market segments. The
total headcount at year-end ran at 4,224, down 275
year-on-year. Adjusted for the divested businesses,
the increase in headcount was 370.
The Business Group reversed many contingency
actions taken due to the economic crisis. Such acti
vities included reduced work schedules, pay and
benefit cuts for associates as well as travel restric-
tions. To conclude its capacity adjustment actions
initiated in 2009, the Group completed the closure
process for the plants in Spencer, Iowa, USA, and
Germantown, Wisconsin, USA.
Freudenberg-NOK General Partnership
2009 2010
Sales [US $ million] 695.4 798.7
Workforce 4,499 4,224
25. 21Management Report – Review of Operations by Business Area
Technology advances for the Business Group
included low friction seals featuring a lip design
which increases performance, continued development
activities for single cavity, net-shape injection mold-
ing which eliminates flash, and the introduction of
FluoroXprene®, a fluoroelastomer which is a highly
differentiated material bridging the gap between PTFE
and rubber and allowing for highly varied end-use
demands of the customer.
For 2011, Freudenberg-NOK General Partnership
expects the North American automotive and overall
economy to improve slightly, and modest sales level
increases are anticipated for the year.
NOK-Freudenberg Group China
NOK-Freudenberg Group China is an equal-share
joint venture between NOK Corporation, Japan, and
Freudenberg serving the high-growth Chinese market
with locally produced and imported seal and vibra-
tion control technology products.
The joint venture supplies numerous European, US,
Japanese and Chinese customers in the automotive
and general industry sectors in China. In cooperation
with the partners NOK Corporation, Freudenberg
Seals and Vibration Control Technology Europe
and NOK-Freudenberg General Partnership, the
locally-manufactured product range is continuously
expanded in line with market requirements. Market
success is based on those factors which also account
for the success of the Freudenberg/NOK Corporation
network in other regions, namely technological
leadership and quality.
Products and services
Production and sale of seals for the automotive
industry such as Simmerrings, valve stem seals, shock
absorbers, steering column seals, drivetrain seals,
bellows, dust caps, O-rings, frame gaskets, mem-
branes and torsional vibration dampers. The product
range also includes seals for general mechanical
engineering applications such as hydraulic and pneu-
matic seals or seals for washing machines as well
as vibration control elements for the electronics and
consumer goods industry which are either produced
in China or imported from Europe, North America or
Japan.
Locations
China, Hong Kong
NOK-Freudenberg Group China
Suite 14 B to H
International Ocean Shipping Building
720 Pudong Avenue
Shanghai 200120 | P.R. of China
Phone: +86 21 5036-6900
Fax: +86 21 5036-6307
E-mail: nfgc.headquarter@nfgc.com.cn
www.nfgc.com.cn
In 2010, sales by the NOK-Freudenberg Group China
joint venture again grew significantly, rising from
€154.7 million to €221.7 million (+ 43.3 percent)
due to the positive market environment in China, with
growth thus noticeably higher than the average for
the relevant sales markets. Sales are accounted for
in the Freudenberg consolidated financial statements
on a pro-rata basis (i.e. a share of 50 percent). The
NOK-Freudenberg Group China
[before pro-rata shareholding]
2009 2010
Sales [E million] 154.7 221.7
Workforce 1,790 1,905
26. 2222
headcount at year-end also rose – albeit at a dispro-
portionately lower rate than sales – increasing by
6.4 percent to 1,905 (previous year: 1,790), of which
953 associates are included in the Freudenberg con-
solidation in line with the 50 percent shareholding.
NOK-Freudenberg Group China benefited exception-
ally well from continued growth both in the automotive
industry and the general industry sector. The Chinese
automotive industry enjoyed another very successful
year in 2010 as a result of the extension of existing
sales incentive measures initiated by the Chinese gov-
ernment and the introduction of new measures aimed
at energy efficiency. From the end of the first quar-
ter, the general industry segments topped the level
achieved before the economic and financial crisis.
NOK-Freudenberg Group China successfully
expanded its leading position in the automotive indus-
try and in several general industry segments. There
was a substantial rise in strategically important sales to
Chinese automotive customers as a result of customer-
specific strategies and product solutions tailored to the
needs of Chinese customers. In the general industry
sector, the position in China was reinforced by sales
to direct customers as well as the local production of
further product groups. The after-sales market was
systematically developed by Corteco China Co., Ltd.,
Guangzhou, China, established in 2009.
Improvements in process technology, higher productiv-
ity, a larger share of local procurement, systematic
current asset management and quality improvements
raised profitability.
Moving into 2011, the enormous price pressure from
customers and competitors will continue to present a
challenge for NOK-Freudenberg Group China.
Added to this is the fact that the competitiveness of
Chinese manufacturers is visibly progressing and
international competitors are expanding their activities
in China with a view to participating in this attractive
market. To remain successful in such an environment
the Business Group will forge ahead with investments
to train associates, improve quality, establish addi-
tional sales locations close to customers and set up
new production plants, particularly for new products.
2011 is expected to be another successful year for
NOK-Freudenberg Group China. However, analysts
are forecasting lower growth rates in the automotive
sector as a large number of state incentive measures
expired at the end of 2010. Inflation has risen sharply
and tighter fiscal and monetary policy is anticipated
which could have a negative impact by reining in
infrastructure projects of particular importance to the
general industry sector.
Vibracoustic
Vibracoustic is the technology specialist for vibration
control modules and components for the international
automotive industry. The company enjoys a good
reputation as an original equipment developer thanks
to its proven system capability and a comprehensive
product and service program. Vibracoustic and its
partners NOK Corporation and Pyung Hwa Co. Ltd.,
Taegu, South Korea, have a presence at 32 locations
worldwide and products are supplied to all leading
automakers.
Vibracoustic
2009 2010
Sales [E million] 360.2 564.7
Workforce 2,277 3,057
27. 2323Management Report – Review of Operations by Business Area
Products and services
Vibration control modules and components for the
global automotive industry
Locations
Brazil, China, Czech Republic, France, Germany,
Hungary, India, Mexico, Poland, Russia, South Korea,
Turkey, USA
Vibracoustic GmbH Co. KG
69465 Weinheim | Germany
Phone: +49 (0) 6201 80-8808
Fax: +49 (0) 6201 88-8808
E-mail: info@vibracoustic.com
www.vibracoustic.com
In the 2010 financial year, Vibracoustic gener-
ated sales of €564.7 million (previous year:
€360.2 million). The vibration control engineering
activities in North America, formerly managed by
the Freudenberg-NOK General Partnership Business
Group, were fully consolidated for the first time effec-
tive July 1, 2010, and the Brazilian business formerly
run as a joint venture with Anvis Netherlands B.V. was
fully consolidated effective January 1, 2010. Even
adjusted for these effects, the company’s sales never-
theless returned to the 2008 level only one year after
the economic crisis. As a result, Vibracoustic again
outperformed the vibration control technology market.
Global automotive demand was already develop-
ing very well at the beginning of the year and this
positive trend continued. Apart from a further rise in
sales in several Asian countries, the North American
market in particular reported positive sales devel-
opment. The commercial vehicles market showed
pleasing signs of recovery, albeit noticeably more
restrained than the passenger car market.
Vibracoustic reported a marked rise in sales in all
divisions as a result of the economic upturn, and in
particular high unit sales of premium segment vehi-
cles, as well as the successful rollout of numerous
new projects. The headcount rose to 3,057 (previous
year: 2,277) as a consequence of the changes in the
consolidation and the commissioning of a Vibracoustic
production plant in China.
Vibracoustic’s innovative strength also contributed
to positive business development: Vibracoustic is sup-
plying engine mounts for all engine variants in the
next-generation of the Daimler C-, E- and S-Class.
Another customer named Vibracoustic a develop-
ment partner for a lightweight, plastic engine mount
bracket that reduces CO2. Vibracoustic used auto
motive technology from the passenger car segment
for the first time to design a unique air spring solu-
tion for commercial vehicles. Vibracoustic’s market-
oriented innovation activities are confirmed by the
start of series production of the flexible constant-
velocity joint. These customer-oriented solutions take
Vibracoustic into a field of application previously
dominated by a single supplier.
Market potential in growth markets continues to be
leveraged. The Business Group has laid the founda-
tions for further globalization with the integration of
the North American Vibracoustic activities, the full
acquisition of the Brazilian company Vibracoustic do
Brasil Ltda. and the new production facility in Yantai,
China. Production of air springs for commercial
vehicles and chassis components successfully com-
menced in Yantai on schedule in July 2010. Devel-
opment orders for chassis parts for Volkswagen’s
new global Golf/Polo platform, chassis parts for the
Chinese market and suspension subframe mounts for
General Motors confirm the success of the Business
Group’s new global structure.
Vibracoustic is also expanding its vibration technol-
ogy business in the automotive centers of Japan and
South Korea: The position with General Motors and
Hyundai is to be strengthened in cooperation with
the South Korean partner Pyung Hwa Anti-Vibration
Systems Co., Ltd., Taegu, South Korea. More intense
28. 24
collaboration with Japanese companies opens the
door to Japanese carmakers.
There is a clear global structure to responsibilities
and competences in Vibracoustics’s new worldwide
organizational structure. Consequently, all divisions
and regions have a stronger and more competitive
orientation.
Vibracoustic expects these pleasing developments to
continue in the first months of 2011. On January 17,
2011, Freudenberg and Trelleborg AB, Trelleborg,
Sweden, signed a letter of intent regarding a poten-
tial 50:50 joint venture between Vibracoustic and the
automotive anti-vibration business of Trelleborg AB.
Both companies plan to jointly develop and manufac-
ture vibration control solutions for all car makers and
all vehicle segments in all of the automotive industry’s
major regions worldwide. The joint venture is subject
to approval by the anti-trust authorities in particular.
EagleBurgmann
EagleBurgmann figures among the internationally
leading companies for industrial sealing technology.
The Business Group manufactures and markets a
broad range of high-quality products – from individ-
ual designs right through to large-batch productions,
irrespective of whether highly complex dynamic seal
systems such as mechanical seals and supply units
or special gaskets for a diversity of applications and
sectors of industry. A workforce of almost 5,500 cre-
ative and motivated employees in over 70 subsidiar-
ies develops and produces EagleBurgmann seal solu-
tions which customers around the world can rely on.
A close-knit sales and service network all over the
world testifies to an international presence and cus-
tomer proximity. The products are installed wherever
safety and reliability are major design considerations
when sealing demanding mediums under the most
challenging technical conditions, for example in the
oil and gas, refinery, chemical, pharmaceutical,
energy, food processing, paper, water, marine, aero-
space and mining industries.
Products and services
Mechanical seals, gas-lubricated seals, carbon
floating ring seals, magnetic couplings, seal supply
systems, stuffing box packings, flat gaskets, expan-
sion joints, TotalSealCare® Services, environmen-
tally-compatible solutions, standardization of sealing
EagleBurgmann
2009 2010
Sales [E million] 421.5 678.7
Workforce 5,265 5,495
29. 25Management Report – Review of Operations by Business Area
deadlines. The cost-cutting measures implemented in
the 2009 crisis year brought the anticipated savings.
Even though the situation has improved significantly,
the systematic cost and liquidity management estab-
lished over the last two years will be continued in
2011 in order to respond as swiftly as possible to
changes in business conditions.
EagleBurgmann launched a strategic growth project in
the USA in 2010 with a view to significantly increas-
ing its market share. The project aims to expand
operator business, penetrate the market and raise
awareness among OEM customers and planning firms
and improve the supply chain. Another major project
at EagleBurgmann is the global rollout of an ERP
standard software which will improve core processes.
The Business Group’s successful innovations include
mechanical seals with a crystalline diamond coating
used in numerous highly-challenging applications in
pumps, compressors and mixing plants in the chemi-
cal, oil and gas, refinery, pharmaceutical and water
sectors. Scientists from various Fraunhofer Institutes
and EagleBurgmann, as one of the partners in the
alliance which developed this new material and
made it ready for industrial application, received the
Stifterverband Award for this innovation in mid-2010.
For 2011, the Business Group expects growth to
continue, albeit at a slightly slower pace. This will call
for additional production and administration capaci-
ties and the project to build a new production hall in
Eurasburg which was mothballed as a result of the
crisis in 2009 will be reactivated. The project helps to
meet market requirements in terms of speed and deliv-
ery reliability by restructuring the production process.
systems and application testing, after-sales service
with assembly, commissioning, repair and damage
analysis, sealing technology seminars and practical
training
Production locations
Austria, Brazil, China, Czech Republic, Denmark,
Germany, India, Italy, Japan, Mexico, Turkey, USA
EagleBurgmann Germany GmbH Co. KG
Äußere Sauerlacher Straße 6-10
82515 Wolfratshausen | Germany
Phone: +49 (0) 8171 23-0
Fax: +49 (0) 8171 23-1214
E-mail: info@eagleburgmann.com
www.eagleburgmann.com
EagleBurgmann derived particularly significant
benefits from the swift economic recovery in many
regions and sectors of industry; sales by the Business
Group rose by 20.6 percent in the year under review
to €678.7 million (comparative basis for 2009:
€562.8 million). As a result of the crossover share-
holding between Freudenberg and Eagle Industry
Co., Ltd., Tokyo, Japan, the income statements of
further companies in the EagleBurgmann Group
were consolidated for the first time in the year under
review. Prior-year sales included in the Freudenberg
consolidated financial statements ran at €421.5 mil-
lion. The headcount in 2010 was 5,495 (previous
year: 5,265), 230 higher than the previous year.
For EagleBurgmann, the 2010 financial year was
characterized by a sharp rise in orders following the
drop in 2009, with order levels at year-end higher
than 2008, even adjusted for exchange rate effects.
Project business in particular gathered momentum
over the course of the year, with growth strongest in
Asia and South America. Order growth even sur-
passed sales growth adjusted for currency effects.
In response to the sharp rise in demand, short-time
work at all German sites was terminated in the first
half of the year. Global production capacities were
increased flexibly so as to meet committed delivery
30. 26
Architecture and acoustics
I experienced the impressive acoustics and atmosphere in the Rose Center at first
hand while on a trip to New York. Our acoustic nonwoven did a very good job.
Christian Spiegel, Marketing Manager, Freudenberg Nonwovens.
31. 27
The building is an eye-catcher, silhouetted against the imposing New York skyline. The Planetarium of the American
Museum of Natural History was built on Manhattan’s Upper West Side not far from Central Park in 2000. When it is
illuminated at night, the 27-meter sphere within its glass box is a wonderful visual highlight among the sea of buildings.
But it is not only its unique architecture that draws some three million visitors a year to the Rose Center for Space and
Earth. Inside the sphere, visitors can experience the Big Bang and the vastness of space – some of the shows take place
in two 3D theaters. An unusual Freudenberg product plays a key role in the exceptional acoustics at the Rose Center.
The SoundTex® acoustic nonwoven is used in the sphere’s outer shell as well as inside the Planetarium. Freudenberg
Nonwovens supplied its customer Ceilings Plus, responsible for the ceiling and wall construction in the Rose Center,
with approximately 2,000 square meters of the nonwoven, which has a thickness of only 0.2 millimeters. The wafer-
thin material converts sound energy into thermal energy and therefore significantly improves acoustics wherever large
crowds of people are to be found. SoundTex® properties are so special that the nonwoven has been selected by inter-
national experts for inclusion in the Material ConneXion materials library. That is an honor only accorded to innovative
materials.
32. 28
Dichtomatik
Dichtomatik is a service-oriented partner active in the
market for technical seals. The Dichtomatik group is
a global organization with regional headquarters in
Hamburg, Germany, for Europe and in Shakopee,
Minnesota, USA, for North and South America; the
group also operates its own companies in a further
ten countries.
Dichtomatik is the market leader as regards product
range and depth as well as effective logistics. Some
55,000 standard articles are available ex ware-
house and the product program also includes roughly
115,000 custom-tailored variants. The seals are used
in numerous applications ranging from industry to
the technical trade. Dichtomatik’s service offering
includes the procurement of special seals, technical
consulting and customized deliveries.
Products and services
O-rings, back-up rings, cords, x-rings, cover seals,
rotary shaft seals, v-rings, axial seals VRM, radial
seals, circlips, piston seals, rod seals, u-rings, pack-
ings, wipers, guide rings, guide strips
Locations
Austria, Brazil, Canada, France, Germany,
Hungary, Italy, Mexico, Netherlands, Sweden,
UK, USA
Dichtomatik
2009 2010
Sales [E million] 46.9 76.6
Workforce 214 432
Dichtomatik Vertriebsgesellschaft für technische Dichtungen mbH
Albert-Schweitzer-Ring 1
22045 Hamburg | Germany
Phone: +49 (0) 40 669 89-0
Fax: +49 (0) 40 669 89-101
E-mail: mail@dichtomatik.de
www.dichtomatik.com
In 2010, Dichtomatik with its headcount of 432
(previous year: 214) generated sales of €76.6 million
(previous year: €46.9 million) in an economic environ-
ment that was beginning to recover. As Dichtomatik
business in North and South America previously
conducted under the umbrella of Freudenberg-NOK
General Partnership was fully integrated in the
Dichtomatik Business Group effective July 1, 2010,
a year-on-year comparison based on these figures
is only of limited value. If Dichtomatik business in
America for 2009 and 2010, which was run by
Freudenberg-NOK General Partnership until June 30,
2010, is fully included in the comparison, then sales
rose by 37.1 percent and the headcount increased
by 34.
Due to Dichtomatik’s customer structure with the focus
on trade and mechanical engineering there was a
slight time lag in the impact of the economic recovery
compared with the automotive industry. Sales, which
began to pick up in the fourth quarter of 2009, contin-
ued on a strong growth path into the second quarter
of 2010, reaching a significantly higher level than
2009 and continuing with a further slight upward
trend during the second half of the year. Sales for the
full year 2010 were slightly below the record level for
2008.
In addition to market activities, Dichtomatik invested
in improving its service offering, both in Europe and
America – the new internet shop developed in 2009
was rolled out across Europe in 2010. The sales
organization in America was strengthened and reor-
ganized with a view to achieving significantly closer
proximity to the customer.
33. 2929Management Report – Review of Operations by Business Area
A further three service locations were set up in
Mexico for the same purpose (current nationwide
total: 17).
Business in Europe (branches in eight countries) and
in North and South America (branches in Brazil,
Canada, Mexico and the USA) was combined to
form one Business Group effective July 1, 2010. The
organization was realigned to reflect these global
business operations, reinforcing and further expand-
ing the successful business model worldwide.
For 2011 Dichtomatik expects sales growth to con-
tinue, albeit at a noticeably slower pace and with
correspondingly smaller increases in market share.
Nonwovens Business Area
The Nonwovens Business Area comprises the Business
Groups Freudenberg Nonwovens, Freudenberg Politex
Nonwovens and Freudenberg Filtration Technologies.
In 2010 the Business Area generated sales of
€1,078.6 million (previous year: €910.6 million). At
year-end 2010, the headcount was 5,020 compared
with 5,010 at the close of the previous financial year.
The major customer groupings for this Business Area
are the textile and clothing industry (Freudenberg Non-
wovens), the automotive industry (Freudenberg Filtration
Technologies and Freudenberg Nonwovens) and the
construction industry (Freudenberg Politex Nonwovens).
Freudenberg Nonwovens
Freudenberg Nonwovens develops, produces and
markets nonwoven products for a wide range of
applications. Nonwovens made by Freudenberg are
used in interlinings for the garment industry and for
technical applications such as battery separators,
for acoustic purposes to provide sound absorption,
as fireblockers in furniture and as cable insulation.
In the medical and hygiene sector, nonwovens from
Freudenberg offer the highest comfort and safety.
Freudenberg was the first company to introduce non-
wovens on the market and continues to set the global
Freudenberg Nonwovens
2009 2010
Sales [E million] 531.2 633.3
Workforce 3,310 3,151
34. 30
destroyed two production lines for hygiene products,
the market was kept supplied at all times and there
was marked growth. Rebuilding work was started
immediately, two new hygiene product lines are
scheduled to start operating in April 2011. In Europe,
Industrial Nonwovens reported growth in excess of
25 percent, thus returning to the 2008 sales level.
Recovery in the North American automotive industry
generated a significant rise in sales. South America,
which was not as hard hit by the 2008/2009 crisis,
is back on its growth course.
The Interlinings Division improved its European
business following completion of a comprehensive
restructuring program. Two plants in Italy were closed
and administration in Europe streamlined. At the same
time, a premium price strategy and a differentiated
range of services lifted the price level in Europe. Inter-
linings business in Asia developed well. Thanks to a
strong local presence, significant progress was made
in growth in Latin America.
Going forward, the Interlinings Division plans to
expand the international menswear business and
press ahead with the market launch of new prod-
ucts based on the Power Dot® Bonded nonwovens
technology.
The Industrial Nonwovens Division benefited from
the marked recovery in the automotive sector in all
regions during the year under review. There was
also a significant upturn in products such as battery
separators and cable materials for the capital goods
industry. The Division launched a multi-year develop-
ment program for nonwoven-based battery separators
for lithium-ion batteries.
Sales in the Spunlaid Division in Asia, USA and
Europe lifted significantly as economic recovery
gathered momentum. Continued strong demand for
spunlaid in Asia, particularly for tuft and shoe materi-
als, resulted in supply bottlenecks. The US market
standard with new ideas such as Lutradur ECO®
and Vilene® Power Dot® Bonded. Freudenberg Non-
wovens operates a global sales network and manu-
factures at 20 locations worldwide. The company has
enjoyed very close cooperation with Japan Vilene
Company Ltd., the Japanese market leader in non
wovens, for many decades.
Products and services
Interlinings, industrial nonwovens, spunlaid
Production locations
Argentina, Brazil, China, France, Germany, India, Italy,
South Africa, South Korea, Spain, Taiwan, UK, USA
Freudenberg Vliesstoffe KG
69465 Weinheim | Germany
Phone: +49 (0) 6201 80-5009
Fax: +49 (0) 6201 88-5009
E-mail: info@freudenberg-nonwovens.com
www.freudenberg-nw.com
Freudenberg Nonwovens is divided into three Divi-
sions: Interlinings, Spunlaid and Industrial Nonwo-
vens. These Divisions develop and produce custom-
ized nonwovens solutions. Demand already showed
signs of a slight recovery back in the second half of
2009, with this trend continuing and intensifying in
the 2010 financial year. Sales by the Business Group
rose to €633.3 million (previous year: €531.2 mil-
lion), representing a year-on-year rise of 19.2 percent.
All market segments and regions contributed to this
growth. The headcount declined from 3,310 at year-
end 2009 to 3,151 as at December 31, 2010.
In 2010, some of the Business Group’s plants were
operating at their capacity limits. Decommissioned
capacity at the sites in Durham, North Carolina, USA,
and Kaiserslautern, Germany, was reinstated to meet
rising demand from customers.
Business in Asia developed very well in 2010. Despite
a fire at the Pyungtaek plant in South Korea which
35. 31
benefited from growth in the American automotive
industry, where the Business Group supplies tuft
backings for automotive carpets. Demand in Europe
was also characterized by growth in automotive
and hygiene products. However, Europe was more
severely affected than other regions by significant
increases in raw material prices.
For the 2011 financial year, Freudenberg Nonwovens
expects to see continued strong demand in regions
outside Europe, particularly Asia, and will be respond-
ing to this with targeted investments. In the core
markets of North America and Europe, the Business
Group will be focusing on innovations such as bat-
tery separators for lithium-ion batteries. Freudenberg
Nonwovens will be passing on to customers the
anticipated higher prices on raw material markets in
the form of price increases.
Freudenberg Politex Nonwovens
Freudenberg Politex Nonwovens, headquartered in
Novedrate, Italy, is the world leader in the produc-
tion and marketing of polyester nonwovens, mainly
used as reinforcements for bituminous roofing mem-
branes. A broad range of products is furthermore
sold to the construction industry for different appli-
cations. Padding materials for the furniture industry
round off the product range. The majority of products
Management Report – Review of Operations by Business Area
Freudenberg Politex Nonwovens
2009 2010
Sales [E million] 185.2 203.9
Workforce 650 609
is manufactured with recycled polyester obtained in-
house from post-consumer PET bottles. This integrated
production cycle not only recycles waste, but also
significantly reduces CO2 emissions.
Products and services
Roofing: Staple and spunbonded polyester nonwo-
vens (standard or glass filament-reinforced) used as
backing for bituminous roofing membranes
Construction materials: Products for waterproofing,
thermal insulation, sound absorption, heat reflection,
drainage, reinforcements and other applications
Padding: Voluminous polyester nonwovens for
furniture
Locations
China, France, Italy, Poland, Russia, USA
Freudenberg Politex S.r.l.
Strada Provinciale Novedratese, 17/a
22060 Novedrate (CO) | Italy
Phone: +39 031 793 111
Fax: +39 031 793 202
E-mail: mk@politex.it
www.freudenbergpolitex.com
In 2010, Freudenberg Politex generated sales of
€203.9 million (previous year: €185.2 million). Sales
of roofing reinforcements recovered by some 11 per-
cent compared with the previous year on a market
which only grew some nine percent in the same
period. Sales in the construction materials segment
grew by 32 percent. The completion of restructuring
measures in Poland and in Italy resulted in a reduction
of headcount to 609 (previous year: 650).
The recovery on the construction market was slow all
over the world; however the need for repair work and
renovation sustained demand for roofing reinforce-
ments, particularly on growth markets such as Russia
and the Middle East. In addition, the need to develop
infrastructures in emerging economies contributed fur-
ther to sustaining the construction sector. Thanks to its
know-how in both spunbond and staple technology,
36. 32
the Business Group was able to reaffirm its global
leadership in the polyester roofing market.
The escalation of raw material prices continued
throughout the year and besides impacting costs also
put high pressure on the global balance between
supply and demand, which in some cases resulted
in material shortages. Freudenberg Politex was able
to partially mitigate the effect on margins by increas-
ing its sales prices and undertaking aggressive cost
reduction programs. Sales growth and the almost
complete exploitation of capacities kept performance
on a par with the previous year and generated posi-
tive cash flow.
In 2010, the Business Group continued its activities to
prove the environmental sustainability of its products
and processes. The main European product lines
(Texbond®, Terbond® and Ecozero®) were certified
with Environmental Product Declarations and products
manufactured in Macon, Georgia, USA, obtained the
UL Environment Label assessing the recycled content
issued by Underwriters Laboratories Inc. (UL), North-
brook, Illinois, USA, an independent product safety
certification organization. Life Cycle Assessment
studies, already demonstrating that the recycling of
post-consumer PET bottles allows a 50 percent reduc-
tion of CO2 emissions, will be periodically monitored
in order to measure and improve further the environ-
mental profile of products and processes.
For 2011, Freudenberg Politex Nonwovens expects to
consolidate its position in mature markets against a
macroeconomic backdrop that remains volatile, and
to follow growth on some emerging markets where
construction demand will be stimulated by the need
to modernize buildings and infrastructures. For this
reason, activities in Russia will be expanded until
2012.
In response to expected further rises in raw mate-
rial prices, Freudenberg Politex Nonwovens will be
introducing important innovations in terms of raw
material consumption and process technologies. Tight
cost control as well as the generation of adequate
cash flows will also remain a priority.
Freudenberg Filtration Technologies
Freudenberg Filtration Technologies develops and
produces innovative filtration solutions worldwide
which improve the efficiency of industrial processes,
protect people and conserve resources, protect
the environment and enhance the quality of life.
Freudenberg filters are used successfully for intake,
exhaust and recirculating air filtration in many
industrial applications such as production, office
and residential ventilation and in the transport
(rail, marine, aviation) sector, energy production,
healthcare, pharmaceutical, the food and beverage
industry, and cleanrooms. In the field of liquid filtra-
tion, Freudenberg Filtration Technologies provides
solutions for coolant and lubrication applications,
pool and spa, beverages and foodstuffs as well as
products for the manufacture of membranes and
filter candles. In the human protection filtration sec-
tor, the Business Group provides filter solutions for
office equipment, respiratory masks, vacuum clean-
ers, air conditioning systems and other technically
challenging applications. As a development part-
ner and manufacturer for the automotive industry,
Freudenberg Filtration Technologies
2009 2010
Sales [E million] 194.2 241.4
Workforce 1,050 1,260
37. 33
Freudenberg Filtration Technologies produces cabin
air filters and engine intake air filters. A comprehen-
sive range of system solutions (e.g. development and
construction of filter plant) and services (e.g. filter-
Cair air quality management and training) comple-
ment the product portfolio.
Products and services
Intake, exhaust and recirculating air filters for gen-
eral ventilation applications; filters and filter media
for residential applications, air conditioning systems,
office equipment, respiratory masks and vacuum
cleaners; filter media for liquid filtration; cabin air
filters; engine intake air filters; filterCair air quality
management; plant development and construction;
filter testing; training and consulting
Production locations
Argentina, Australia, Brazil, China, Germany,
India, Italy, Japan, Mexico, Slovakia, South Africa,
South Korea, Thailand, USA
Freudenberg Filtration Technologies KG
69465 Weinheim | Germany
Phone: +49 (0) 6201 80-6106
Fax: +49 (0) 6201 88-6106
E-mail: info@freudenberg-filter.com
www.freudenberg-filter.com
Underpinned by rises in all regions and segments,
Freudenberg Filtration Technologies generated sales
of €241.4 million (previous year: €194.2 million) and
employed 1,260 associates (previous year: 1,050) at
year-end. The measures introduced in response to the
economic crisis had a positive impact in a year char-
acterized by dynamic business recovery. Further efforts
are required, particularly in the industrial filtration busi-
ness in Europe and North America. Thanks to the high
level of flexibility at all production plants, there was a
swift response to the rise in incoming orders.
Industrial air and liquid filtration activities developed
well. In addition to strengthening existing customer
Management Report – Review of Operations by Business Area
relations, progress was achieved in acquiring new
customers and expanding the Viledon® brand product
portfolio. Freudenberg Filtration Technologies won
major orders in areas such as environmental technol-
ogy, shipbuilding and aircraft construction, and to
provide equipment for air intake systems for gas tur-
bines and compressor stations. 2010 saw the global
market launch of the micronAir® office fine dust filter
for document shredders, a unique innovation.
In September 2010, Freudenberg Filtration Technolo-
gies acquired the Australian company MicroFresh
Filters (Aust.) Pty. Ltd. Now renamed Freudenberg
Filtration Technologies (Aust) Pty. Ltd., the company
is one of the market leaders in filter technology for
the mining industry and raw material processing.
With this step, the Business Group has expanded its
product portfolio and laid the foundation for further
growth in Australia and Oceania.
The crisis-driven reluctance to invest in maintenance
or in retrofitting and expanding filtration plant at the
beginning of the financial year was followed in the
second half of the year by a rise in orders in Asia,
South America and Europe. The Business Group
won a major order from a Taiwanese petrochemical
products manufacturer for the new “Viledon® eee.Sy”
program (combined filtration and cooling solution for
large gas turbines and compressors).
Demand for micronAir® cabin air filters for new
vehicle OEM installation and the aftersales market
grew in all regions, particularly South America and
Asia. Production capacity in China was significantly
expanded. The European spare parts business saw
growth in combifilters (fine dust filters with an acti-
vated carbon layer) in particular and market share
in this segment was defended. Global business with
engine intake air filters, where the conventional paper
filters in the intake air system are replaced by high-
quality synthetic filter mediums, continued to develop
well.
38. 34
The main challenges facing the Business Group in
2011 are massive rises in raw material prices, an
industrial filtration market that remains volatile, and
the need to enhance productivity further. Plans include
the introduction of new, high-efficiency industrial
filters, expansion of the plant engineering and service
business and expansion of business in the BRIC
countries.
Freudenberg Household Products
2009 2010
Sales [E million] 626.8 676.8
Workforce 2,309 2,347
Household Products Business Area
The Freudenberg Household Products Business Area
comprises the Freudenberg Household Products Busi-
ness Group, which is active in the mechanical clean-
ing equipment and laundry care segments for final
users (Consumer) and commercial cleaning companies
(Professional).
Freudenberg Household Products
Freudenberg Household Products is one of the lead-
ing international manufacturers of brand cleaning
articles and systems and laundry care products. The
company is the market leader in almost all coun-
tries. Products are marketed under the brand names
of vileda®, O’Cedar® and Wettex®. The Business
Group’s success factors are detailed knowledge of
the market, innovations, new and effective products
and a pronounced customer orientation. These are
complemented by international market and customer
research, innovation centers in all regions of the
world and a dedicated sales network in over
30 countries.
Products and services
Floor cleaning equipment, household cloths, cleaning
39. 35
articles, household gloves, mats, laundry care prod-
ucts such as ironing boards and clothes driers
Locations
Australia, Belgium, Canada, Chile, China, Croatia,
Czech Republic, Denmark, Finland, France, Germany,
Greece, Hong Kong, Hungary, India, Italy, Jordan,
Mexico, Netherlands, New Zealand, Norway, Poland,
Portugal, Romania, Russia, Serbia, Slovenia, Spain,
Sweden, Turkey, UK, USA
Freudenberg Haushaltsprodukte KG
Im Technologiepark 19
69649 Weinheim | Germany
Phone: +49 (0) 6201 80-871000
Fax: +49 (0) 6201 88-874000
E-mail: info@fhp-ww.com
www.vileda.com
The business of Freudenberg Household Products is
divided into the Consumer Division (some 85 percent
of sales) and the Professional Division. Sales rose
by 8.0 percent to €676.8 million (previous year:
€626.8 million). The headcount at year-end rose by
38 to 2,347.
In 2010, Freudenberg Household Products operated
on mixed markets worldwide which showed signs
of returning to growth. Growth was driven by the
Asia/Pacific, South America, Russia and Middle East
regions, while rising unemployment and higher taxes
as a result of the financial and debt crises impacted
consumer goods markets in almost all countries in
North America and (Southern) Europe.
The Business Group nevertheless lifted competitiveness
in all regions and almost all countries with sales rising
month by month in 2010.
Streamlining processes and organization during the
crisis strengthened Freudenberg Household Products.
Main factors in the good development were increased
investment in growth regions, product innovations
Management Report – Review of Operations by Business Area
backed by publicity measures, cooperation with
strategic partners and a marketing strategy oriented to
customer benefit and sustainability.
One focus of Business Group activities in 2010 was
the successful expansion of distribution and market
presence in Asia/Pacific and Russia which led to a
45 percent rise in sales in the overall region and signi
ficant growth in all countries. The start-up of a factory
in Gujarat, India, brought substantial expansion of
business in this region.
A further focus of activities was the successful launch of
the vileda® Naturals “green” product line manufactured
from sustainable or recycled materials thereby meeting
demanding sustainability criteria, the ProMist® integrated
mop spray system, and the flexible FingerMop® dusting
system; combined with further product enhancements
and an advertising budget that had been doubled, these
innovations triggered growth in all world regions.
Furthermore, a far-reaching partnership with the Span-
ish company SpBerner Plastic Group S.L. was agreed.
The first joint projects involved the transfer of SpBerner
cleaning products distribution in Spain and Portugal to
Freudenberg Household Products and setting up a new
production joint venture in the USA featuring technologies
new to Freudenberg Household Products and located at
the Business Group’s facility in Aurora, Illinois, USA.
Freudenberg Household Products expects to outperform
the market in the 2011 financial year. It is planned to
significantly expand the regional presence in Asia and
America. The Business Group will continue to focus on
its strong innovation program, intensive cooperation
with strategic retail partners and further expansion of
distribution, particularly in emerging markets and the
USA. Activities will also focus on setting up a new plant
in Russia, a higher share of recyclates in products and
active process, cost and environmental management in
order to raise efficiency in all areas.