Continental says it intends to purchase the outstanding shares in Emitec, to date a 50-50 joint venture co-owned by the German supplier and GKN for integration into its powertrain division.

Based in Lohmar, near Bonn, Emitec is a supplier of emissions technologies and was founded in 1986.

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Its product portfolio includes metal catalytic converters, particle filter components, and dosing modules for selective catalytic reduction (SCR).

Since starting, the company has produced more than 170m of these components. Emitec has a workforce of around 900 employees at locations in Europe, the US and Asia.

SCR reduces nitric oxide in emissions by injecting a urea/water solution into the exhaust system. Continental says more stringent emissions limits will make it necessary for virtually all diesel vehicles to be equipped with an SCR system.

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“The intended integration of Emitec into the Continental is a strategically significant step,” said Continental powertrain division president, José Avila.

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“We will now be able to supply those of our customers requiring all-in-one solutions in the key growth market of exhaust after-treatment.

“Above and beyond this, the acquisition will enable us to realise synergies between the powertrain division and Emitec, touching on everything from development and production through to purchasing.”

In the case of SCR solutions, Continental’s different business units in the Powertrain Division develop and produce the injection system, including sensors, injectors, control devices and software, while the ContiTech Division contributes the heatable hose lines and Emitec, the dosing module.