Environment

Environmental issues are attracting increasing attention in the vehicle industry. Haldex has positioned itself at the forefront in an effort to increase environmental awareness and is now conducting several projects that offer significant market potential.

Demands by public authorities for reduced emissions, combined with increased awareness among customers, are creating greater demand for products that reduce the environmental impact. This is a trend that will almost certainly grow stronger during coming years.

Alfdex

Work is now in progress to develop the next generation of Alfdex, which separates oil and dust particles in ventilator air from diesel engine crankcase gases. Alfdex was developed in cooperation with Alfa Laval, and the new generation is expected to further improve the purification of crankcase gases.

The first generation of Alfdex was introduced in 2004 and is used today by about 10 of the world’s leading truck and engine manufacturers. Examples of key customers include Scania, International Truck and Detroit Diesel. A number of other manufacturers are also testing the system. With an order backlog valued at SEK 1 billion over the next three to five years, Alfdex is firmly established as the leading supplier of highly effective solutions for the treatment of crankcase gases. Today’s widespread interest in the product is attributable in part to more stringent legislation concerning engine emissions, with respect both to exhaust fumes and crankcase gases. Alfdex reduces emissions from the crankcase to virtually zero, thereby fulfilling the environmental requirements introduced in the US in 2007. This represents a new field for Haldex and will contribute to the company’s continued growth.

Varivent

Varivent, another example of Haldex’s innovative product development, reduces emissions of nitrogen oxides from diesel engines while also contributing to lower fuel consumption. Following a series of tests, several major manufacturers of diesel engines plan to integrate Varivent in their engine platforms beginning in 2010. As a result of new and more stringent international environmental regulations, demand for solutions such as Varivent is expected to increase sharply.

Energy Management System

At the same time, Haldex is continuing to develop new technology for the control of hydraulic systems, Energy Management System (EMS), a combination of hydraulics and electronics that improves operating efficiency and reduces energy consumption. The technology is believed to offer substantial market potential and will also create new opportunities for hydraulic vehicles.

EMS captures and recycles a large amount of the energy normally lost in vehicle braking. This is a critical factor for improved fuel economy. Using hydraulic hybrid technology, engine speed and torque can be made independent of vehicle speed.

In response to demands for reduced emission from combustion engines, manufacturers have introduced a more sophisticated valvecontrol mechanism while increasing fuel injection pressures. At the same time, the number of valves has been increased. This is placing greater demands on spring valve wire. Through continued product development, Haldex has raised the quality and strength of spring valve wire as much as 25 percent.