Hitachi Chemical acquires German thermal insulation maker Isolite GmbH

The move is aimed at strengthen Hitachi Chemical's automotive products business

Isolite’s insulation system for automotive

Last Updated : May 02 2017 | 4:38 PM IST

Hitachi Chemical Co Ltd has concluded a contract to acquire a 100 percent stake in Isolite GmbH - the German manufacturer of thermal insulations for automobiles, aircraft and other industrial applications - from Equita GmbH & Co Holding KGaA, a private equity fund and other shareholders.

Acquisition is in line with Hitachi Chemical’s 2018 Medium-Term Management Plan, as per which the company aims to strengthen its automotive products business by expanding its overseas development, manufacturing and sales bases.

Isolite is advancing its thermal insulation business for automobiles, aircraft and other industrial applications with its development, manufacturing and sales operations based in Germany. Its direct insulations products, developed by its own material technology, have been adopted by major automakers as pipe insulations connected to turbochargers, which were recently introduced to automobiles for greater fuel efficiency, especially in Europe. With turbocharged vehicles likely to spread more widely to other countries, such as the US and Japan, Isolite’s thermal insulation business is expected to grow further in the global market.

This acquisition will allow Hitachi Chemical to expand the sales of Isolite’s thermal insulations to Japanese automakers through its existing domestic sales network, while taking advantage of Isolite’s sales network and manufacturing bases in Europe to accelerate the promotion of Hitachi Chemical’s automotive products in the European market. In addition, Isolite and Hitachi Chemical will explore the synergistic effects of insulation technology to speed up the development of thermal insulations that meet market needs, such as low fuel consumption and environmentally-friendly components expected to see further growth in the future, thereby providing solutions for thermal management of automobile engines and exhaust system parts.

Direct insulations are products that block heat by adhering to high-heat automotive parts such as engines. Isolite’s ‘direct insulation’ products block heat more effectively than conventional methods using heat shield plates that do not adhere to high-heat components, and insulate small spaces as well.

A turbocharger is an automotive component that spins a turbine (wheel) driven by the engine’s exhaust gas and pumps compressed air into the engine with a compressor rotating with the turbine. By forcing more air into the engine, a turbocharger allows for reduced engine size and weight to improve fuel efficiency while maintaining the same power performance as conventional engines. For engine exhaust gas to flow to the turbocharger without cooling, thermal insulations are used around the hot gas-carrying pipes between the engine and the turbocharger to retain the heat.