(March 18, 2011)

Twelve suppliers included in the Premium Supplier Circle for the first time

Objective is to develop approx. 200 suppliers

On the occasion of the first joint Premium Supplier Day, Schaeffler GmbH and Continental AG have named twelve supplier as premium suppliers and strengthened their strategic cooperation at the same time.

The selected suppliers from seven nations were named in nine purchasing areas during the event on March 14, 2011 in Herzogenaurach.

Maria-Elisabeth Schaeffler emphasized in her welcoming speech the importance of the purchasing agreement as a strategically important measure for the increasingly intensive partnership that has existed between Schaeffler and Continental since 2008 and thanked the experts involved for the excellent cooperation also on behalf of her son. She highlighted the decisive role played by strategically important suppliers against the backdrop of further change processes in the markets: “As two of the world’s leading system suppliers and in the face of increasing technological requirements, Schaeffler and Continental must work together with partners who share our ideas and fulfill our high requirements.”

Dr. Juergen M. Geissinger, President and CEO of Schaeffler GmbH, emphasized in his presentation: “Both companies are very well positioned for the challenges of the future, such as e-mobility, energy efficiency and mechatronics. We are profiting from the strategic cooperation and together we are achieving success with our sustainable approach. Therefore, we will continue to foster and develop our partnership in strategic and operative areas.”

The Chairman of the Executive Board of Continental Dr. Elmar Degenhart said with regard to the Premium Supplier Circle: “Continental wants to operate in the market as one of the world’s leading suppliers to the automotive industry. This is unthinkable without our long-term suppliers, who contribute their expertise in development, production and logistics. By cooperating in purchasing, Continental and Schaeffler are implementing the principle of operating as independent units on the market, but at the same time are drawing on synergies produced as part of the cooperation. The prerequisites in purchasing are particularly good, because the strengths of Continental and Schaeffler compliment each other very well in this area.”

Schaeffler GmbH and Continental AG have a total of over 1,200 strategic suppliers and 400 of these suppliers were evaluated. These fulfill the ten criteria defined in the list of requirements to become a premium supplier.

A total of 35 suppliers managed to fulfill most criteria and were invited to the event in Herzogenaurach. Twelve of these suppliers fulfilled the criteria to the full extent:

Alupress AG, Italy
Anhui Zhongding Rubber Plastics Products Co. Ltd., China
Ensinger GmbH, Germany
HES-Präzisionsteile – Hermann Erkert GmbH, Germany
Hugo Kern und Liebers GmbH & Co. KG, Germany
MIBA Sinter Holding GmbH & Co. KG, Austria
Progress-Werk Oberkirch AG, Germany
Rhodia Engineering Plastics, France
SFS Intech AG, Switzerland
Sunbeam Auto Ltd., India
TFM S.p.A., Italy
Ticona GmbH, Germany

The appointment as a premium supplier and the presentation of a certificate of appointment will enable these suppliers to gain from the joint cooperation in future. For example, quality audits are now recognized on a mutual basis. The purchasing processes of both companies will also be simplified. Joint suppliers can also achieve higher sales volumes due to the global growth of Schaeffler and Continental.

Schaeffler GmbH and Continental AG have been cooperating in purchasing since the beginning of 2009 with the objective of achieving joint growth and optimizing material costs.

Looking back at the start of the cooperation and the joint results, Dr. Gerhard Schuff, Senior Vice President of Purchasing at Schaeffler emphasized in his speech: "We can already say today that the strategic cooperation has paid off. It has not only reduced costs in the three-figure million euro range, but also achieved a continuous improvement in quality and the ability to supply. We are therefore on the right track to achieve our joint targets.”

Continental AG and Schaeffer GmbH want to develop 200 suppliers and include them in the Premium Supplier Circle in future. Günter Fella, Head of Purchasing at Automotive at Continental AG, went into particular detail about the concept for further development of the strategic cooperation in his speech: “Schaeffler and Continental operate on the market with one purchasing strategy, uniform quality standards and a joint supplier base. This gives us the opportunity of purchasing the latest technology with the highest-possible level of reliability from the best suppliers in order to maintain the leading position of our companies on the market.”

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