Plastic Omnium Starts Production of Its New SCR Diesel Vehicle Emissions Reduction Systems for Audi, Volkswagen and Porsche

Regulatory News:

Plastic Omnium (Paris:POM) is currently developing a technique to reduce nitrogen oxides (NOx) emissions from diesel vehicles called SCR (Selective Catalytic Reduction). SCR technology is based on the injection of an aqueous urea solution called AdBlue®, into the exhaust system. Upon contact with the hot gases, AdBlue is converted by hydrolysis to ammonia, which then reacts with the nitrogen oxides to emit non-polluting water and nitrogen. The system reduces NOx up to 95%, bringing the level of NOx emissions of diesel vehicles below that of petrol vehicles, and into compliance with future environmental standards.

In early 2015, Plastic Omnium began production of SCR systems for the Volkswagen Group new MLBevo platform. Following the Audi Q7, in production since February, production of SCR systems for the Audi A4 has just begun in the Polish plant in Lublin. The Audi A5, Volkswagen Touareg and Porsche Cayenne will be equipped with the system from 2016 and 2017. A total of 2 million SCR systems will be provided to the Volkswagen Group over the lifetime of this platform.

Plastic Omnium, World no. 1 for fuel systems (more than 18 million fuel tanks produced in 2014), is now one of the leaders in SCR systems, in a market that is growing strongly due to tighter environmental standards for NOx reduction (Euro 6 in Europe and Tier 2 Bin 5 in North America). Worldwide, the SCR market will grow from 1.6 million systems in 2014 to 6.4 million in 2018 (0.6 million, and 5 million in Europe, respectively).

With the launch of this major contract for the Volkswagen group, Plastic Omnium confirms the development potential of its SCR technology, now adopted by nine global manufacturers (Audi, Volkswagen, Porsche, Ford, General Motors, Chrysler, Renault, Nissan, Toyota). Plastic Omnium's production volume, which totaled 300,000 units in 2014, is expected to grow to 2.2 million units in 2018, representing a global market share of 35%.
The SCR system will contribute to achieving the target of a turnover of 7 billion euros for the Group in 2018.

Plastic Omnium is the global leader in car body parts and modules, and automobile fuel systems, as well as being the world leader in waste containers for municipal bodies and businesses. The Group and its joint ventures employ 25,000 people in 111 plants, 21 R & D centers and 30 countries worldwide. Plastic Omnium is listed on Euronext Paris, compartment A, is part of the SRD and the SBF-120 and CAC Mid 60 indices (ISIN code: FR0000124570).

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