BHTC guns for global growth

Germany-based Behr-Hella Thermocontrol GmbH (BHTC), a joint venture between Behr GmbH & Co KG and Hella KGaA, which makes control heads and control units for vehicle climate control systems is reaping the benefits of its prompt entry into the US, China, and India. "As soon as we had got the business on a solid footing in Lippstadt, we started casting our eyes abroad,” says Friedrich Waldeyer, BHTC chief engineering officer.

As early as January 2003, BHTC set up a technical and sales centre in Plymouth, Michigan, followed by a plant in Flora, Illinois to manufacture products for American customers. From this base, BHTC supplies the entire NAFTA region. And from its plants in Shanghai (China) and Pune (India), BHTC services both local markets and the entire Asian region.

GROWTH IN CHINA

BHTC operates a wholly owned subsidiary in China called Behr-Hella Thermocontrol Shanghai Co. Since 2004, the climate control specialist has become one of the leading suppliers in the Chinese market, which is growing faster than average. In just 15 months, BHTC has secured six major orders from German and American automotive manufacturers. And this growth looks set to continue. "After just two years, we have already broken even on our initial investment, so we can now expand from our own resources,” says Norbert Gruber, BHTC chief financial officer.

INDIA THE DARK HORSE

Behr India, set up in December 1997 as a joint venture with Anand Automotive Systems, for the manufacture of air conditioning systems for automobiles, has a state-of-the-art facility near Pune. The company is a single-source supplier of HVAC systems to Mahindra & Mahindra for its Scorpio SUV and to Tata Motors' Indigo and Indica passenger cars. It also produces components for other Behr plants and provides development services to the group's European and American facilities.

For the Behr Group, India clearly is the dark horse which with its rapidly improving infrastructure will prove to be good investment. "The Indian market is still at an early development stage and our activities in fast-growing foreign markets help us to achieve ambitious growth targets,” says Gruber.