Klarius Invests GBP1.2M in UK Manufacturing and R&D, Fuelled by Impressive Export Growth in the Automotive Aftermarket Sector

BLACKPOOL, England - With Photo

One of Europe’s largest independently owned automotive manufacturing concerns, Klarius Group, is currently enjoying success in a challenging market having invested GBP1.2m in its UK manufacturing and R&D facilities over the last eighteen months. The investment has gone into moving production arrangements over to lean manufacturing, fast track product development for exhausts and catalytic converters and in-house logistics facilities.

The Klarius Group was formed in August 2007 following the acquisition of the Emissions Control activities of ArvinMeritor Light Vehicle Aftermarket Europe. In its final year of trading prior to the acquisition (2006/2007), the Emissions Control division had registered a GBP7m operating loss. However, since the Klarius take over this has been turned around, spectacularly, as evidenced by the Group’s first set of accounts which reveal that Klarius moved into profit well within its first full year of trading.

The R&D spend has resulted in the creation of a new technical centre and test track, based at the main UK manufacturing plant in Cheadle, Staffordshire. This facility has brought new product development cycle times down from months which previously was typical for the industry to just days. Favourable Euro exchange rates have also combined with a strong international sales approach to secure new supply agreements and install new distribution facilities and warehousing across Europe.

“The growth that we have achieved so far is impressive; but it is only the start,” said Tony Wilson, Chairman and principle shareholder of the Klarius group.

“We are investing and succeeding with a new highly responsive business model that recognises the needs of the market, as they arise across Europe, and then adapts quickly to react to them. With the current and ongoing demands of the aftermarket, it is critical that manufacturers adapt and build a capacity to adapt to market demands on an hourly basis. This is one of Klarius’ key strengths; flexible, lean manufacturing that allows us to act as a single source for exhaust systems, catalytic converters and peripheral equipment. We are close to 100% market coverage for exhaust systems and now operate an accomplished distribution network that invariably meets the unwavering demand for next day delivery.”

Klarius specialises in supplying large automotive service networks, motor factors and buying groups. All serving the automotive aftermarket; a sector known for its demanding requirements in terms of model variants, price and delivery. Yet despite these demands, Klarius has grown its business consistently, achieving a 98.7% delivery rate across its UK factories; all as a direct result of the strategic investments in lean manufacturing, training, new production processes and logistics.

The scale of this achievement, in what is a recessionary environment, can be judged from the fact that the current Klarius exhaust range across Europe includes over 5,500 references; all are available from a carefully controlled stock. Klarius is highly reactive to market needs; its design, technical and lean manufacturing facilities providing the mechanism that takes products from initial enquiry to market in a matter of days.

“While manufacturers have to be dynamic to meet supply demands, they must also develop high quality parts quickly, or they will fail to cater sufficiently for the market,” said

Paul Hannah, Business Development Director at Klarius Group,

“Our investment in research ensures that when original products become available we begin development promptly, so that when motor factors order the latest replacement parts, Klarius is able to meet demand.”

Klarius’ Fast Track Cat Development Centre is a prime example of how responsive the company is to its served market. The Centre can develop, test and manufacture a new catalytic converter in under a week to meet requests from distributors and retailers. Importantly these converters, in common with Klarius’ products are type-approved, meaning that they effectively integrate with the existing (OBD) sensor systems on vehicles, avoiding the problems with cheaper, non Type Approved catalytic converters that often fail a car’s own emissions sensing requirements soon after fitting and show a dash warning light, demanding another replacement.

The continuing problems with non-type approved catalytic converters and exhausts have led Klarius to mount a campaign, lobbying the UK Government to make type-approval mandatory, as it is already in all other EU countries. In addition to problems with non type-approved parts, the major drivers behind the campaign are economic and environmental.

Motorists are starting to expect their replacement components to last longer, so fitting a better quality replacement, a type-approved CAT or exhaust product, for example, makes economic sense. However, the fact that no other UK manufacturer except Klarius bothers with the involved type-approval process means that customers are not guaranteed to receive a replacement that matches the specification of their car’s original exhaust.

The UK is the only country in Western Europe where this is allowed to happen; and Klarius is lobbying on behalf of customers on this issue. A huge number of Klarius exhaust systems (over 2 million) are fitted each year in the UK, France, Germany, Italy, Spain and Scandinavia, for example, and so its products already have to meet type-approval.

The improved quality provided by Klarius’ TIMAX exhaust systems is the result of using only Aluminised steel and stainless steel in their construction; a material that is highly corrosion resistant for longer life. In contrast, non-type approved exhausts use thinner steel with reduced levels of corrosion resistant coating; and no corrosion resistant materials at all on some of the silencer internals. As a result, non type-approved exhausts commonly don’t last long. Also, importantly, they have a higher back-pressure, due to cheaper silencing methods. This can result in reduced fuel economy; by as much as 3%, according to independently audited figures.

The Klarius Group

The Klarius Group has over 1,000 employees across Europe, with 3 production facilities, in the UK and Italy, distribution platforms: in the UK, France, Italy and Spain; and a research and development facility located in the UK. The technical centre has its own approved test track (the only parts manufacturer to have one) for undertaking type approval of parts. As well as supplying major companies in the aftermarket sector, Klarius also supplies OE manufacturers with exhausts for top marques, including all of the largest and most well recognised Italian super cars and bikes.

Web: www.klarius.eu

E-mail: contact@klarius.eu

Note to Editors:

A picture accompanying this release is available through the PA Photowire. It can be downloaded from www.pa-mediapoint.press.net or viewed at www.mediapoint.press.net or www.prnewswire.co.uk.

Source: Klarius Group

Editorial contact: Roland Renshaw, Director, DMA Europa Ltd. https://www.dmaeuropa.com, Tel: +44-(0)1299-405454 email: roland at dmaeuropa.com. Reader enquiries to: For reader enquiries contact: Véronique Auger, Marketing Coordinator, Europe, Klarius group Ltd. Squires Gate Lane, Squires Gate Ind. Estate. Blackpool, Lancashire, England FY4 3RN. United Kingdom, Tel: +44-1253-400-400 Fax: +44-1253-406-475 , Email: Veronique.Auger at Klarius.eu