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As more and more customers turn to automatic lubrication systems, the company's Groeneveld® and BEKA® brands are expected to achieve a double-digit compound annual growth rate by 2025
North Canton, Ohio, July 12, 2021 /PRNewswire/ - The Timken Company (NYSE: TKR; www.timken.com), a global industry leader in engineered bearings and power transmission products, today Announced that its automatic lubrication system product portfolio has more than doubled the size of the company from a revenue perspective through a combination of organic growth and strategic acquisitions in the past five years. With the Groeneveld® and BEKA® brands, Timken is the world's second largest manufacturer of automatic lubrication systems for industrial applications. i
The company expects 2021 to be another record year for revenue from automatic lubrication systems as it continues to expand its products and global business. In the long run, Timken expects that the long-term global trend of automation will accelerate, and the company's continuous innovative product development plan can enable it to achieve a double-digit compound annual revenue growth rate (CAGR) by 2025.
"Our Groeneveld-BEKA automatic lubrication system product portfolio provides an industry-leading product range," said Hans Landin, Group Vice President of Timken. "Our proven innovation and reliability, coupled with our first-class customer service, are helping to drive growth as more and more customers in industries and regions realize the benefits of automatic lubrication products."
Timken entered the automatic lubrication market after acquiring Interlube in 2013. In 2017, the company significantly expanded its product portfolio and global influence through the acquisition of Groeneveld. After acquiring BEKA in 2019, Timken has consolidated its position as the world's second largest manufacturer of industrial automatic lubrication systems. iii These acquisitions help advance Timken’s strategy of focusing on improving its leading position in the field of engineered bearings and diversifying its product portfolio into adjacent products, markets and regions.
Expanding production in North America and China Later this year, Groeneveld-BEKA will begin assembling its new multi-line pumps at its recently expanded state-of-the-art North American operations headquarters in Dayton, Ohio. At the same time, the business is increasing its manufacturing operations in China to cope with China's growing demand. Increasing production in these two countries represents the development of a global manufacturing footprint, designed to best meet the needs of its customer base.
"The Groeneveld and BEKA brands were established in the Netherlands and Germany respectively, and both enjoy high reputations in Europe," Landing said. "Expanding production in North America and China will help expand the product portfolio and unlock more opportunities."
Provide cost-effective, safe and sustainable benefits. Automatic lubrication systems are more sustainable than manual operations, and can help customers save money through more efficient use of materials and longer-lasting equipment. A properly installed automatic system can reduce grease waste by up to 50%. In addition, for example, oil management systems such as Oilmaster can help extend the life cycle of passenger car engines by up to 30%. The systems installed on wind turbines help ensure that they continue to operate as reliable renewable energy sources.
Safety is another key consideration that drives the trend of automatic lubrication systems. Customers, especially in challenging environments such as ports, mines and quarries, are turning to Groeneveld and BEKA automation systems to reduce risks and prevent accidents. In addition, they help reduce labor demand, especially for companies facing labor shortages.
About Timken The Timken Company (NYSE: TKR; www.timken.com) has designed a growing portfolio of engineered bearings and power transmission products. With more than a century of knowledge and innovation, we have continuously improved the reliability and efficiency of global machinery and equipment, and promoted the world. Timken has sales of 3.5 billion U.S. dollars in 2020, has more than 17,000 employees worldwide, and has operations in 42 countries. Timken was named the most responsible company in the United States by Newsweek, the world's most ethical company® by Ethisphere, and the best employer in the United States and the best employer for fresh graduates in the United States by Forbes.
Certain non-historical statements in this press release (including statements regarding company forecasts, estimates, plans, and expectations) are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, these statements are forward-looking for the company's future financial performance expectations. The company cautions that due to various important factors, actual results may differ materially from the results predicted or implied in the forward-looking statements, including: the company’s ability to respond to changes in the end market that may affect the company’s product demand or services; business relationships with customers Or unexpected changes in their purchases from the company; global or regional economic conditions and weak capital markets; the ability to achieve satisfactory operating results in the integration of the acquired company, including any growth within the expected time frame or none at all Growth; the impact of general economic conditions on operations; fluctuations in customer demand; negative effects on the company’s business, operating performance, financial status, or liquidity due to COVID-19 or other epidemics and related government measures (such as travel and manufacturing business restrictions) Impact; and the company's ability to complete and realize the announced plans, plans, initiatives, acquisitions, and capital investment returns. Other factors are discussed in the company’s filing with the Securities and Exchange Commission, including the company’s annual report on Form 10-K for the year ended December 31, 2020, the quarterly report on Form 10-Q, and the current report on Form 8-K. Except as required by federal securities laws, the company assumes no obligation to publicly update or revise any forward-looking statements due to new information, future events, or other reasons.
Media relations: Scott Schroeder 234.262.6420 [email protection]
i Based on company estimates. ii Based on company and industry estimates. iii Based on company estimates.
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