R&d investment

“Our commercial success has allowed us to invest in the long-term growth of the company, including research and development, plant facilities and technology,” said Sawyer. “We continue to make AX-410 significant investments, increasing R&D spending by 4.6 percent.” In fiscal 2023, Freudenberg invested €600 million (previous year: €580 million) in research and development, equivalent to 5.1% of sales (previous year: 4.9%). Freudenberg assesses the effectiveness of its research and development activities based on the proportion of new products launched within the last four years to total sales. In 2023, the proportion will be 32.4% (previous year: 31.6%).

invest

Excluding acquisitions, the total investment of the Freudenberg Group in intangible and tangible assets and real estate in the financial investment category reached €450 million in 2023 (previous year: €400 million). The Freudenberg Group invests all over the world. As a key part of the Group’s long-term approach and innovation strategy in China, Freudenberg’s business groups continue to invest in advanced manufacturing facilities and local research AX-410 and development. In 2023, the new plant of Changchun Interga Accumulator Co., LTD., a subsidiary of Kedebao Sealing Technology Group, and the new technology center of CeTAC Company in Hangzhou, a subsidiary of Kedebao Special Chemical Group, are officially put into use. Frederberg’s NVH (Noise, Vibration and sound-shock Roughness) solutions specialist Wieback has started local production of air springs at its Wuxi plant, marking the first time Wieback has produced air springs in China.

AX-410

Eagle Borgmann and Kederberg Performance Materials, both part of the Kederberg Group, introduced fabric expansion joint production lines and production lines for Enka® technology for the first time in China, respectively. In addition, the sealing specialist Enfu (China) of Freudenberg Group has invested 200 million yuan in its Wuxi plant and added an annual output of 750 million auto parts renovation project; Kluber Lubricants, a division of Freudenberg Specialty Chemicals Group, continues to expand its local R&D investment in China with an investment of approximately RMB 6 million.

As of December 31, 2023, the Group had 52,241 AX-410 employees from 148 different countries and regions, who worked in 60 countries and regions.

Carbon neutral by 2045

Frederberg Group continues to introduce innovative products to drive the energy transition and has set a goal of becoming carbon neutral by 2045. For Freudenberg, sustainability is a top priority. Achieving this goal mainly involves improving the efficiency of the use of energy and material resources. Freudenberg is committed to achieving net zero CO2 emissions by 2045. To achieve this goal, Freudenberg will adopt a multi-step strategy, including energy conservation, electrification, purchase and production of green electricity.

For many years, Freudenberg has been seeking to obtain green electricity through photovoltaic and wind power systems, some of which comes from its own facilities. Around the world, Frederberg has around 20 new PV systems in service, with another 60 systems in various stages of planning and execution. In 2023, Freudenberg will increase the share of renewable electricity in its total electricity consumption from 30% to 36%.