Tognum GmbH realigns Group companies

Friedrichshafen - Tognum GmbH, manufacturers of large diesel engines, complete drive systems and power generation plant is realigning the group's business activities and brands. In future these will be integrated into two divisions, "Engines and After-Sales" and "Systems and Components" which will form the basis of the Tognum group of companies.

The "Engines and After-Sales" division will center around mtu's engine manufacturing business (located in Friedrichshafen, Detroit/USA and Suzhou/China) and the sale of Mercedes-Benz industrial engines. The division will also incorporate Tognum's comprehensive service activities which are available worldwide throughout the entire life-cycle of its products and represent an ever more important and profitable growth area.

The "Systems and Components" division will encompass the product brands MDE Dezentrale Energiesysteme (Augsburg), CFC Solutions for stationary fuel cells (Munich), L'Orange for injection systems (Stuttgart and Glatten/Schwarzwald) and "Rotorion", the new product brand for drive shafts. With facilities in Friedrichshafen and Charleston/USA, Rotorion produces drive shafts for a range of automobile and commercial vehicle manufacturers.

"Inherent in the creation of Tognum GmbH was an obligation to unite our individual companies in an effective alliance under the Tognum umbrella", said Tognum CEO Volker Heuer. "We have now honored that obligation - and achieved our aim of creating very clear benefits for our customers through enhanced networking of our companies."

Overall realignment within the organization also involves changes at corporate management level: Christof von Branconi will be joining both Tognum and its Board of Management to assume responsibility for the new "Systems and Components" division. The 46 year-old, previously a board member at Lurgi AG (part of GEA Group AG, specialty machine and plant engineering), will be taking up his post on 1st March 2007. Dr. Gerd-Michael Wolters will head the "Engines" division whilst Rainer Breidenbach will retain responsibility for Sales & Marketing with After-Sales in addition.

"The organizational structure now reflects the strategic development pattern of the group as a whole - so that we can now orchestrate the individual companies even more efficiently" said Tognum CEO Heuer, outlining the benefits of the new structure. The significance of decentralized power generation and the service sector as areas of outstanding potential will be underscored throughout both of the new divisions.

Realignment across the group will also involve clear brand positioning within the "Systems and Components" division: Drive shafts business will be represented in the marketplace by the "Rotorion" product brand whilst the fuel cell specialist CFC Solutions will retain the product

name "HotModule" but dispense with the "mtu" prefix to its company name. In future, both Rotorion and CFC Solutions will be able to exercise a greater degree of market autonomy whilst mtu will continue to symbolize innovative, cutting-edge technology in the diesel and gas engine sectors" emphasized CEO Heuer.

This enhanced autonomy within the corporate organization will be highlighted by the appearance of new logos: The name "Rotorion" directly expresses the movement of the drive shaft whilst the logo symbolizes the connection between drive shaft and joint. The flame-red circle of the CFC Solutions logo symbolizes the intense heat of the fuel cell in the "HotModule" power plants as well as its physical form.