The Industrial & Automotive business group manufactures a wide range of systems and components for the industrial and automotive markets through four operating segments: Power Transmission, Fluid Power, Fluid Systems and Other Industrial & Automotive. The business group manufactures a range of belts, fluid transfer products, hydraulic hoses, couplings, pressure monitoring products, valves and axles. I&A has corporate offices in the US and Canada. It supplies a wide variety of industries, including the industrial and automotive OE and replacement markets, transportation, energy and natural resources and agricultural markets. Products are sold through a range of distribution channels: direct to customers (principally for the OE market) and through distributor channels (principally for the aftermarket business). The primary raw materials used by I&A are aluminium, steel and rubber materials, which are principally sourced locally. I&A spends approximately $1,600 million each year on raw materials.
Power Transmission
Power Transmission provides solutions for the transfer of energy. Products range from highly-engineered belts (accessory drive and synchronous timing belts) and accessories (pulleys and tensioners) to energy-saving oil pumps and carrier systems. Power Transmission is a globally integrated business, sharing technology, research and development and resources across the world. It is managed through local offices in North and South America, Europe and Asia.
Gates is the world’s largest manufacturer of power transmission belts for problem-solving applications, with manufacturing and research facilities in 20 countries. Its products are sold direct to industrial and automotive OEMs and through a global network of dealers.
Gates Mectrol manufactures polyurethane timing belts and motion control components for the industrial market, operating manufacturing and sales facilities in the US, Germany and Mexico.
Stackpole is a Canadian-based manufacturer of powertrain components, systems and assemblies primarily for use in automotive engines and transmissions. The business has manufacturing facilities in Canada and the UK.
Fluid Power
Fluid Power provides fluid transfer and hydraulic solutions, predominantly to the industrial OE and replacement markets. In addition to its manufacturing and distribution capabilities, Fluid Power provides on-site servicing and maintenance solutions, mainly to the oil and gas industry through Gates Fleximak (acquired in 2006), A.E. Hydraulic (acquired in 2008) and Gates Productivity & Reliability Services (established in 2008). Fluid Power serves customers across North and South America, Europe and Asia.
Fluid Systems
Fluid Systems provides fluid and gas monitoring and control solutions. Products are sold primarily into the automotive OE and aftermarket for repairs and accessories. Schrader Electronics is the technology leader in RTPMS, and is currently working with other Group companies to develop further applications of its sensing capabilities. In June 2008, Stant and Standard-Thomson, part of the Fluid Systems segment, were sold as part of the Group’s plan to dispose of non-core businesses.
Other I&A
Other I&A includes: Dexter Axle, which produces axles and chassis for the utility trailer, recreational vehicle and highway trailer markets; Ideal, a manufacturer of speciality hose clamps; Plews, a manufacturer and distributor of lubrication, air hose and other aftermarket accessories; and Gates Winhere, a manufacturer of pumps primarily for the automotive market. Dexter Axle and the Dexter Chassis group manufacture and market their products primarily in the US directly to OEMs and through distributors. Ideal and Plews sell products primarily into the aftermarket under a variety of brands. Ideal designs and manufactures clamps principally for markets in the US, Mexico and China. Plews is a designer, manufacturer and distributor of a broad range of automotive parts and tools, sold principally in the US. Dearborn Mid-West, a manufacturer of conveyor systems for the automotive, industrial and utilities industries that was part of the Other I&A segment, was sold in November 2007.
Industrial sales
by destination 2008
Automotive OE sales
by destination 2008
Automotive aftermarket sales
by destination 2008
Financial highlights:
Key products:
Key brands:
Power Transmission
Sales:
$2,106.4m
Operating margin:
10.9%
% of Group sales:
38.2%
Belts, pulleys, tensioners and idlers, powder metal components, electro-mechanical drive systems, power transmission and pump components, engine and transmission oil pumps
Gates
Gates Mectrol
Stackpole
Fluid Power
Sales:
$832.3m
Operating margin:
5.6%
% of Group sales:
15.1%
Hydraulics, hoses, belts, coupling systems
Gates
EMB
Gates Fleximak
A.E. Hydraulic
Gates E&S
Fluid Systems
Sales:
$501.2m
Operating margin:
8.0%
% of Group sales:
9.1%
RTPMS, wheel and tyre valves, inflating gauges
Schrader Electronics
Schrader Bridgeport
Other I&A
Sales:
$620.9m
Operating margin:
7.1%
% of Group sales:
11.2%
Axles and wheels, trailer chassis and components, fabricated metal parts, clamps, water and oil pumps
Gates E&S distributes and services hose and hydraulic systems in the industrial and oil and gas sectors. It achieved double-digit growth and opened four new service centres in 2008. Gates Productivity & Reliability Services, a division of Gates E&S, provides on-site services to the oil and gas sector. The acquisition of a distributor in Singapore, A.E. Hydraulic, provides geographic expansion of the Gates E&S business.
