SHW has a foothold in three strategically relevant regions, Europe, NAFTA and China, in order to satisfy the increasing demand of its customers. The scalability of the pump business allows SHW to expand into other countries with relative ease – pursuing a best-cost-country approach – and making efficient use of capital. In this way, it can serve existing customers or new ones who already manufacture engines or gearboxes in the country or are planning to open new production operations in the country in question in future.
In the course of the corporate strategy, SHW will expand the international footprint of Pumps and Engine Components business segment in a targeted fashion.
In September 2016 the Chinese subsidiary, SHW Automotive Pumps (Kunshan) Co., Ltd., started producing variable engine oil pumps for a Chinese-European joint venture. In 2017 production of primary gearbox oil pumps and electric auxiliary gearbox oil pumps started for a leading Chinese automobile manufacturer. The start of production of a variable engine oil pump with balancer shaft for a Chinese-North American joint venture is scheduled for fiscal year 2018. The same applies to a variable engine oil pump for a Chinese-North American joint venture and an electric auxiliary gearbox oil pump for a European automobile manufacturer.
The Canadian subsidiary, SHW Pumps & Engine Components Inc. will start the production of variable engine oil pumps for the global engine platform of a North American automobile manufacturer in fiscal year 2018. The start of production for a variable engine oil pump with a control valve for three and four-cylinder engines produced by the same customer is scheduled for 2019 on the basis of the current planning. For further penetration of the North American market, SHW Pumps & Engine Components Inc. will continue to focus on passenger car applications for the leading North American automobile manufacturers on the market as well as providers of automobile gearboxes. In addition to engine oil pumps, further potential is identified for electric gearbox pumps. In terms of industrial applications, the company will intensify its existing relationships to North American manufacturers of agricultural machines and construction machines.
The Brazilian location plays an important role in the global production network of SHW. Together with the locations in North America and China, SHW is able to meet the requirement of having a global footprint, which is particularly important for North American automobile manufacturers.
Since July 2014 engine oil pumps have been produced for a major US automobile manufacturer. Production of identical engine oil pumps for the European requirements of this customer started in the fiscal year 2017. The start of production of a variable engine oil pump for another North American customer is scheduled for 2019.