Annual Report 2010 - Knorr-Bremse AG.

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Joint development activities
The joint venture enables Knorr-Bremse for the first time to take an integrated approach to developing
braking systems with organic UIC brake pads and UIC brake blocks. Engineers in both companies are
now working on achieving optimum interplay of friction materials and braking systems to ensure
minimum wear and maximum operating life for the individual components.
The two partners are a perfect match: Icer Brakes is a recognized expert in the development and
manufacture of friction materials – an area where Knorr-Bremse has not been particularly active up till
now – while Knorr-Bremse offers something a highly specialized manufacturer like Icer Brakes does
not have: a century of experience in rail vehicle applications and braking systems combined with a
global sales and marketing network.
Strategic acquisition in HVAC segment
There were similar motives in the case of Knorr-Bremse’s acquisition of the well-established Australian
HVAC specialist, Sigma Coachair Group (SCG). The takeover has considerably expanded Knorr-Bremse’s
market position. Via its subsidiary, Merak, the company already has a well-established reputation mainly
in China, Europe and America, but SCG gives it easier access to growth markets in Southeast Asia,
India and Australia.
The merger will generate many synergies for both companies, particularly in development, production
and procurement. More than 30 years of experience in the field have enabled Sigma Coachair
Group to achieve top quality standards combined with high levels of efficiency. The company has also
been involved in a large number of projects worldwide. For example, trains built by Kawasaki Heavy
Industries for Taipei Metro are being equipped with Sigma HVAC systems. And via Hyundai Rotem the
public transport operator in Boston has ordered Sigma Coachair systems for new metro trains. Many
of the management positions at Sigma Coachair have been deliberately preserved so that the company’s
years of expertise will continue be available in the future.
Further foothold in special resistors
Knorr-Bremse’s purchase of a majority share in German company Heine Resistors GmbH also fits into
the Group’s strategy of making targeted acquisitions to expand its market position in a range of further
business areas.
Heine Resistors GmbH was taken over by Microelettrica Scientifica S.p.A., a member of the Knorr-
Bremse Group based in Rozzano, Italy. This Knorr-Bremse subsidiary has been designing, developing
and producing switches, protection relays and resistors for rail vehicles and industrial applications for
more than 50 years.
The acquisition of Heine is particularly promising for Microelettrica in the field of brake resistors, as the
two firms will be able to benefit from industrial synergies. They also complement each other perfectly
in worldwide markets, with Microelettrica particularly well represented in Sweden, Italy and Japan,
while Heine has a particularly strong customer base in Germany and Eastern Europe.