Despite a difficult market environment, KIRCHHOFF Automotive successfully maintained its position in 2024 and kept turnover at the previous year's level. While sales of electric vehicles fell significantly by 15 percent, a balanced customer mix in particular contributed to stability. “Our global orientation and the diversification of our product portfolio help us to better balance out market fluctuations,” explains J. Wolfgang Kirchhoff, Chairman of the Executive Board and CEO. With 27 production plants worldwide and over 8,500 employees, the company expects to generate sales of 1.9 billion euros in 2024.

KIRCHHOFF Automotive works closely with customers and suppliers to make CO₂-reduced materials ready for series production. “90 percent of our CO₂ footprint is caused by the steel and aluminum materials we use. That is why we are cooperating with leading European steel producers in the development of CO₂-free or CO₂-reduced steel grades,” explains J. Wolfgang Kirchhoff. By 2030, KIRCHHOFF Automotive aims to reduce direct emissions by 50 percent and use 100 percent renewable energy in all its plants worldwide.

Many new orders for larger and more complex assemblies for the major car manufacturers are again being realized at the German locations in Iserlohn, Attendorn and Saarwellingen. To this end, KIRCHHOFF Automotive has invested almost 14 million euros this year in building renovations and, above all, in modern, high-tech welding systems.

In 2024, we invested in modern technologies and new production facilities worldwide - a total of 154 million euros.

Looking at the companies in the KIRCHHOFF Group, they will be able to increase their turnover to 3.3 billion euros with 14,200 employees despite the difficult economic conditions.

You can read more about the 2024 financial year review and 2025 outlook in the winter edition of K>MOBIL that will be published on December 13.

Around 50 members of the VW Board of Management, including Oliver Blume (Chairman of the Board of Management of Volkswagen AG and Dr. Ing. h. c. F. Porsche AG) and Dirk Große-Loheide, Board Member for Purchasing at the Volkswagen Passenger Cars brand and member of the extended Group Management Board, learned about our innovations during this VIP Tech Walk. The theme of the tour was “Accelerating marketable products.” The focus: a joint research project with VW Group Innovation on the use of a new steel grade made of silicon-boron steel “SIBORA”. This has high strength in the hot formed state and, thanks to its bainite and metastable retained austenite content, also has a higher residual formability. Successful tests of a hot-formed B-pillar made of “SIBORA” material under series production conditions show that an improvement in crash safety can be achieved as a result of higher energy absorption with a simultaneous reduction in body mass.

In addition to the product innovations made of “SIBORA” material, KIRCHHOFF Automotive also presented a steel module cross member in open shell design at the IZB, which is not only lightweight but also allows the integration of cable harnesses, for example.

One of our main goals is to develop and produce products that make car bodies more environmentally friendly. That is why we have validated the use of new CO₂-reduced steels in cooperation with leading steel producers. At the IZB, for example, we presented an Audi sill on which we successfully tested the use of ArcelorMittal Usibor®1500 XCarb® recycled and renewably produced substrate as a starting material. This material consists of at least 75% recycled steel and 100% renewable electricity in the steelmaking process. This enables us to significantly improve the carbon footprint of our products.

This also made us a valued discussion partner at the IZB “Green Steel” workshop. The topics discussed included challenges for calculating the carbon footprint of products, challenges in the transformation to green steel and climate neutrality targets.

Dr. Thorsten Gaitzsch summarizes: “The discussions with the representatives of the Board of Management and the dialogue with VW experts in a small group were a special highlight, as they gave us important insights and at the same time further strengthened our partnership.”

For lightweight construction and safety - these were our highlights at the IZB

1 .The first use of the revolutionary ‘SIBORA’ silicon-boron steel grade, developed in cooperation with Volkswagen AG and successfully tested on various prototypes
Hot forming is a forward-looking, effective technology that can significantly reduce the CO₂ footprint of a component. The use of materials plays a crucial role here. Together with VW, KIRCHHOFF Automotive has therefore worked on the material and process development of a silicon-boron steel grade called ‘SIBORA’ for a modified hot forming process, the so-called BQP process. SIBORA is a new steel grade that exhibits high strength in the press-hardened state and, due to the content of bainite and metastable residual austenite, also higher residual formability. By using the steel grade “SIBORA”, an improvement in crash safety can be achieved as a result of higher energy absorption with a simultaneous reduction in body mass.

2. Safety-relevant products made of new CO₂-reduced steels for an improved ecological balance and more environmentally friendly car bodies
With special body-in-white solutions, KIRCHHOFF Automotive ensures safe mobility, primarily through the high strength of special steels. An additional advantage: less material is needed for products made of such steels. This saves weight and effectively contributes to the reduction of the CO₂ footprint. In cooperation with leading steel producers, we have validated the use of new CO₂-reduced steels. This enables us to significantly improve the CO₂ balance of our products. At the IZB, KIRCHHOFF Automotive exhibited an Audi sill, for example, on which the use of ArcelorMittal Usibor®1500 XCarb® recycled and renewably produced substrate was successfully tested as a primary material. This material consists of at least 75% recycled steel and 100% renewable electricity in the steel production process.

3. Function integration in the cockpit: Innovative steel module cross-car beam in open shell design

KIRCHHOFF Automotive complements its extensive manufacturing portfolio for this product group with the instrument panel carrier in open shell design. The steel modular cross member is not only lightweight, but also enables the integration of cable harnesses, for example. A major advantage of this design is the high level of functional integration, which helps to reduce costs.

Watch the video for a closer look into the IZB 2024.

‘Empowering Partnerships’ is the motto of this year's International Suppliers Fair (IZB) in the Allerpark in Wolfsburg. The title says it all: here, VW suppliers exchange ideas with VW board members, purchasers and developers about the latest innovations in the automotive supplier sector. Visitors to the KIRCHHOFF Automotive stand 6102 will learn a lot of new information about current research results in the areas of safety and improvement of the CO₂ balance.

Special highlights:

• The first use of the revolutionary ‘SIBORA’ silicon-boron steel grade, developed in cooperation with Volkswagen AG and successfully tested on various prototypes
  Hot forming is a forward-looking, effective technology that can significantly reduce the CO2 footprint of a component. The use of materials plays a crucial role here. Together with VW, KIRCHHOFF Automotive has therefore worked on the material and process development of a silicon-boron steel grade called ‘SIBORA’ for a modified hot forming process, the so-called BQP process. SIBORA is a new steel grade that exhibits high strength in the press-hardened state and, due to the content of bainite and metastable residual austenite, also higher residual formability. Tests on a B-pillar made of SIBORA material that was hot formed under series production conditions show that an improvement in crash safety can be achieved due to higher energy absorption while simultaneously reducing the body mass.
• Safety-relevant products made of new CO₂-reduced steels for an improved ecological balance
  With special body-in-white solutions, KIRCHHOFF Automotive ensures safe mobility, primarily through the high strength of special steels. An additional advantage: less material is needed for products made of such steels. This saves weight and effectively contributes to the reduction of the CO₂ footprint. In cooperation with leading steel producers, we have validated the use of new CO₂-reduced steels. This enables us to significantly improve the CO₂ balance of our products.
• Innovative steel module cross-car beam in open shell design
  The advantage of this construction is the high level of function integration, which contributes to a cost reduction.

Visitors can experience the innovative solutions for less weight, fewer CO₂ emissions and more safety from 22-24 October 2024 at KIRCHHOFF Automotive booth 6102 in hall 6.

"The agreement with Hyundai Steel gives us an additional opportunity to source green steel from as early as 2025. The CO₂ reduction will be achieved through a mixing process of EAF and BOF material (Electric Arc Furnace/Blast Oxigene Furnace), which will then reduce the CO₂ footprint for the delivered product by around 20% compared to the steel currently supplied from the blast furnace route. In the final expansion stage, the blast furnace process will also be replaced by steel from the electric arc furnace route in order to achieve CO₂ neutrality," explains Uwe Hadwich, Global Director Procurement.

The Korean company Hyundai Steel Company supplies us with steel in the form of cold-rolled and hot-dip galvanized coils and is a leader in the field of materials for the automotive industry. Through continuous investment, research and development, Hyundai aims to decarbonize the steel manufacturing process and expand the production range of low-carbon steels.

KIRCHHOFF Automotive and Hyundai aim to explore and develop opportunities to manufacture and supply low carbon steel products for the European market. To this end, KIRCHHOFF Automotive will test the low-carbon cold-rolled or hot-dip galvanized coils. These will be produced in a complex process that combines the blast furnace process and the electric arc furnace process.

“We plan to conduct actual parts testing with KIRCHHOFF Automotive and plan to proactively establish a low-carbon automobile steel plate sales network by collaborating with European automakers”, says an insider from Hyundai Steel.

With the signing of this memorandum of understanding, KIRCHHOFF Automotive is taking a further step towards more sustainable mobility. Further cooperation in this context already exist with the suppliers ArcelorMittal, thyssenkrupp Steel Europe, SSAB and H2Green Steel. The company also ranks among the top 5% in the "Manufacture of parts and accessories for motor vehicles" sector and was awarded a silver medal by EcoVadis, the world's most reliable provider of sustainability ratings for companies.

Nowadays, the CO₂ footprint in the automotive industry is a key issue. Hot forming has sometimes been seen as a CO₂ driver due to the energy used. A new study by KIRCHHOFF Automotive, the specialist for safety-relevant body parts, shows the opposite: innovative manufacturing processes such as hot forming can even play a decisive role in reducing emissions.

Technology Development Specialist Markus Loecker provides valuable insights into the advantages of hot forming: "With hot forming, you can work with thinner materials, which leads directly to a reduction in the overall weight of the vehicle. This weight saving plays a role in reducing CO₂ emissions when driving a vehicle with a combustion engine. At the same time, it helps to reduce the energy requirements of an electrically powered vehicle."

However, the reduction in material compared to the use of cold-formed steels is most important. This is because the biggest influence on the CO₂ footprint of a component lies in the amount of material used. While the processing technology itself also leads to emissions by heating the steel, reducing the amount of material used is an effective way of lowering the carbon footprint. "Hot forming allows us to achieve more with less material. This is particularly important as the automotive industry is constantly looking for ways to minimize its environmental impact," adds Markus Loecker.

This is why we use hot forming for safety-relevant body parts such as crash management systems and A and B pillars in order to use thinner material while maintaining or even improving performance. This technology produces particularly hard and resistant steel parts that are especially effective in crash situations and therefore play a decisive role in the passive safety of vehicles. Hot forming thus leads to greater safety and, at the same time, a reduction in CO₂ emissions, thereby also supporting the company's sustainability efforts.

Markus Loecker truly believes in the importance of hot forming for the future of the automotive industry: "Contrary to what one might think at first glance, hot forming is a key element in sustainable automotive engineering. It helps us to reduce our environmental impact by using and processing materials more intelligently."

KIRCHHOFF Automotive is investing around HUF 20 billion (almost 51 million euros) in new production and logistics halls and complex robot-controlled welding technology in Esztergom and Dorog. This will create 100 new jobs in the region.

The 5,600 square metre halls are only the first phase of the expansion of the plant area.

In addition to the owner family Kirchhoff, Ádám Hernádi, Mayor of Esztergom, Gábor Erős, Member of Parliament, and Boglárka Illés, State Secretary for the Development of Bilateral Relations of the Ministry of Foreign Affairs and Trade, also attended the ceremony. In her welcome speech, Boglárka Illés stressed the importance of the automotive industry for Hungary: 25% of the manufacturing industry's output comes from the automotive sector. “It is extremely important not only to establish cooperation with the automotive industry, but also to strengthen it. I believe that today we are celebrating the completion of another investment by KIRCHHOFF Hungária Kft.” The Secretary of State thanked the owners and described the company as a crucial and indispensable link in the automotive industry.

In his opening speech, J. Wolfgang Kirchhoff, Chairman of the Executive Board and CEO KIRCHHOFF Automotive AG, repeatedly thanked all employees from Hungary for the 20-year success story, which would not have been possible without them. The transformation of the former assembly plant into a press shop with new processes and machines had already been a challenge. “However, the biggest challenge was that we launched products for ten new customers in a very short time,” said the CEO. Today, the team in Esztergom is running the most advanced technologies used at KIRCHHOFF Automotive. “My family and I are very proud that we have managed these challenges together with the Hungarian management team. However, this is not only thanks to the strong leadership team [...], but to all the employees here. Thank you once again for this great achievement!”

The festive event was rounded off with cultural programmes, a panel discussion and the inevitable cake-cutting by the two managing directors in Esztergom, Szilárd Méri and Géza Körtvélyessy.

The award ceremony in Miami, Florida, USA took place as part of an event focusing on the limitless opportunities for collaboration between suppliers and General Motors. Jeff Morrison praised the innovative strength of the award-winning suppliers and emphasized their contribution to the transformation of the company. "We are honored to partner with these top suppliers who have made notable contributions to our transformation. Together we’re pushing boundaries, pioneering new technologies and redefining what’s possible. Their innovation and support are critical to our ability to deliver the world-class vehicles our customers expect," he said.

J. Wolfgang Kirchhoff, Chairman of the Executive Board & CEO KIRCHHOFF Automotive, accepted the "Supplier of the Year 2023 in the Creativity Team of Structures" award together with Larry Hagood, President & CEO KIRCHHOFF Automotive North America, and Josh Forquer, EVP Sales & Technical Development KIRCHHOFF Automotive North America. "KIRCHHOFF Automotive has been awarded for the 15th time this year out of 20,000 GM suppliers worldwide. It is a great achievement and recognition of all employees in our plants and in the Corporate departments, which we have accepted on their behalf. I would like to congratulate and thank all our employees," said J. Wolfgang Kirchhoff. Larry Hagood added, “At KIRCHHOFF Automotive North America, we recognize that our people are the greatest resource we have. It is only by unlocking the creativity and ambitions of our people and empowering them to perform their jobs in the best way possible will we have a chance to achieve our ‘limitless’ potential.”

Info box:

In addition to the Supplier of the Year award, General Motors has honored the North American KIRCHHOFF Automotive plants in Aurora, Dallas, Lansing, North York, Querétaro and Tecumseh with the "2023 Customer Care and Aftersales On-Time Shipping Award" for its delivery reliability.

About the picture:

Out of 20,000 GM suppliers, 83 were honored. This puts KIRCHHOFF Automotive in the top 1 percent of all GM suppliers worldwide. At the award ceremony from left to right: J. Wolfgang Kirchhoff (Chairman of the Executive Board & CEO KIRCHHOFF Automotive), Peter Layer (Executive Director, Chassis, Propulsion Structures General Motors), Josh Forquer (EVP Sales & Technical Development KIRCHHOFF Automotive North America), Larry Hagood (President & CEO KIRCHHOFF Automotive North America)

KIRCHHOFF Automotive has achieved a silver medal from EcoVadis, the world’s most trusted provider of business sustainability ratings. The company is among the top 5% in the sector "Manufacture of parts and accessories for motor vehicles" and among the top 14% of all companies assessed. In total, EcoVadis assessed over 85,000 companies worldwide.

“This independent assessment confirms our belief that we are on the right way towards sustainability. It’s not only a testament to our commitment to environmental and social issues but also validates that our efforts are recognized by experts. However, the EcoVadis silver medal is not just an accomplishment; it's also a motivation to continue improving our sustainability practices”, says Anna Szklarz, Global Director CSR & Sustainability at KIRCHHOFF Automotive. “The positive evaluation indicates that our company has also taken effective and solid measures to address key social challenges, showing our dedication to responsible employment.”

EcoVadis is the global standard for business sustainability ratings. The EcoVadis assessment evaluates 21 sustainability criteria across four core themes: Environment, Labor & Human Rights, Ethics and Sustainable Procurement.

EcoVadis’ business sustainability ratings are based on international sustainability standards such as the Ten Principles of the UN Global Compact, the International Labour Organization (ILO) conventions, the Global Reporting Initiative (GRI) standards and the ISO 26000 standard. The ratings provide an evidenced-based analysis on performance and an actionable roadmap for continuous improvement.

Learn more at EcoVadis.com/suppliers

Here you can watch a video about KIRCHHOFF Automotive’s EcoVadis silber medal award.

The year 2024 seems to be off to a good start for them, as the local government has officially approved the renaming of the road in front of the Esztergom plant, so from this year onwards KIRCHHOFF Automotive's Hungarian headquarters will be located at Kirchhoff fasor 1.

"There is no doubt that we are immensely proud to rename the road in honor of a man, whom many of us look up to and cherish. The new production hall and the tree-lined street will be inaugurated at the end of May. By that time exactly 92 more trees will have been planted along the street, symbolizing the years of Dr Jochen F. Kirchhoff's life", shared Géza Körtvélyessy and Szilárd Méri, the Managing Directors of the Hungarian plant.

Several departments in the Hungarian team are currently working to ensure that the new address is written everywhere from invoices and communication interfaces to Google Maps.

Both companies have signed a 7-year contract for this.

"The message from our customers is clear: they want products with a lower carbon footprint. This is in line with our ambition to play a pioneering role in sustainable development in the industry. Sustainability has always played an important role for us. It's great to be working with the new player in the market, H2 Green Steel. The team has really pushed the steel industry to do more and move faster in terms of sustainability," says Michael Rank, Global EVP Procurement.

KIRCHHOFF Automotive is working very ambitiously on the sustainability of the company and its supply chain, where steel is the main product component and accounts for 50% of material purchases.

90% of the CO₂ footprint is currently determined by the use of conventionally produced steel and aluminum. Based on orders from international car manufacturers for future vehicle generations, KIRCHHOFF Automotive assumes that the demand for safe and sustainable body components will rise sharply in the coming years.

The agreement that has now been concluded provides for green steel from the H2 Green Steel plant in Boden/Sweden to be supplied to KIRCHHOFF Automotive plants throughout Europe from 2027.

KIRCHHOFF Automotive has already started to determine the location of greenhouse gas emissions in its supply chain (Scope 3) in 2022, both upstream at suppliers and downstream at customers. In addition, the company is pursuing the overarching goal of establishing a high level of sustainability in the supply chains of the automotive industry, which is also reflected in the fact that KIRCHHOFF Automotive is one of the founding members of the "Responsible Supply Chain Initiative RSCI e. V." association.

"Suppliers to the automotive industry must align themselves with the ambitious plans set out by progressive car makers. But we also have a group of companies that are ahead of the others because they follow their own compass. KIRCHHOFF Automotive is one such company. They combine their impressive heritage with a strong focus on the future, where sustainable products are both a competitive advantage and important for the climate and sustainability goals," says Stephan Flapper, Head of Commercial, H2 Green Steel.

H2 Green Steel is committed to complying with Scope 1, 2 and upstream Scope 3 requirements as defined in the Greenhouse Gas Protocol. The company has committed to a gross carbon emissions intensity per ton of steel in its customer contracts. The ongoing work to reduce emissions will have an impact on KIRCHHOFF Automotive's material supply chain and its upstream Scope 3 emissions.

The two companies will also collaborate on a circular economy initiative with the aim of returning at least 30% of steel scrap to H2 Green Steel's electric arc furnaces in Boden for recycling.