In an era marked by the escalating challenges of global climate change and a rising consciousness of environmental protection, new energy vehicles (NEVs) have emerged as a significant growth sector worldwide. In China, the world's largest auto market, the NEV industry has gained significant achievements, positioning itself as a leader in the global automotive industry's shift toward electrification.

Deepening engagement in China's NEV Market

Over the past decade, China's annual production and sales of NEVs have experienced exponential growth, soaring from 75,000 vehicles initially to a remarkable 9.5 million, thereby capturing more than 60% of the global market share. This growth is also underscored by an impressive average annual compound growth rate of 71%.

In this context, UFI Filters Group (hereinafter "UFI Group") has recognized the vast potential of China's NEV market. In January 2022, the Group signed an investment agreement with the Administrative Committee of the Xiuzhou High-tech Development Zone in Jiaxing city, Zhejiang Province, to establish its factory fully dedicated to green technologies in China, focused on producing thermal management products and advanced, efficient filtration materials. After over two years of meticulous preparation, UFI GREEN (JIAXING) Co., LTD. (hereinafter "UFI GREEN") celebrated its grand opening on May 27th.

UFI GREEN opening ceremony; photo credit: UFI Group

Strategic significance, core functions of UFI GREEN

For UFI Group, this new facility represents not merely the 7th manufacturing base on the Chinese Mainland, but also its inaugural factory fully committed to green technologies in the country, marking a significant milestone in its business expansion. At the opening ceremony, Simone Trazzi, Managing Director and Chief Operating Officer APAC of UFI Group, remarked, "Today is not just about the opening of a new industrial facility– it's indeed about the celebration of partnership, innovation and shared commitment to sustainability".

Simone Trazzi, Managing Director and Chief Operating Officer APAC of UFI Group; photo credit: UFI Group

The new factory, covering 42,000 square meters, is outfitted with cutting-edge production lines and R&D Lab center. With an overall investment of 45 Mil Euro and 650 employees, UFI GREEN will develop and manufacture advanced thermal management systems and innovative filtration products.

At the first stag, UFI GREEN will focus on the production of E-axle heat exchanger, battery chillers, liquid cooling condensers, dry receivers, accumulators and integrated compact battery thermal management modules, reaching full capacity at 9.4 million units. These products aim to maintain the electric drive system and batteries in the best temperature range conditions, and are applied to new energy vehicles and energy storage applications.

Integrated battery thermal management module; photo credit: UFI Group

Additionally, the new plant will focus on high-adsorption and high-efficiency filtration media for mobility, home appliance and industrial filtration, with a capacity of 3 million square meters.

HEPA cabin filter and Carbon cabin filter; photo credit: UFI Group

Focusing on thermal management system with commitment to localization

Since its establishment in 1971, UFI Group has evolved into a global leader in filtration systems and thermal management technology, with extensive operations in sectors such as automotive, aerospace, maritime transport, and specialized industrial applications, including customized hydraulic machinery. Today, UFI Group operates in 21 countries, with 22 manufacturing facilities worldwide and a workforce exceeding 4,000 employees.

In China, UFI Group's presence dates back to 1982, marking its distinction as the first foreign company in the country to conduct the filter business. Over the decades, the Group has consistently expanded its engagement in the Chinese market, now boasting seven manufacturing bases.

Multitube air filter; photo credit: UFI Group

UFI Group is following "local-to-local" strategy: UFI GREEN is planned to include an advanced innovation center dedicated to R&D of new systems and products. Besides, the Group's R&D center in Shanghai has developed extensive expertise in thermal management and cabin air filtration technologies for quite a long time. In recent years, UFI Group has garnered significant achievements in the realm of electric drive and battery thermal management, particularly in the area of battery thermal management modules. Notably, China has emerged as the forefront R&D hub for the group in this vital field.

UFI GREEN; photo credit: UFI Group

Notably, UFI GREEN is located about only 100 kilometers from the Shanghai headquarters and R&D center. This proximity greatly benefits the company's operational efficiencies, bridging the gap between research and market needs. This streamlined process not only ensures the Group's competitive edge amid the fierce rivalry in the Chinese market, but also helps in effectively managing costs, bolstering the Group's sustainable growth.

Pioneering sustainable energy future with layouts in hydrogen sector

In the second phase, UFI GREEN will be also focused on hydrogen & fuel cell systems as a key development area. The Group has a deep commitment to environmental protection and firmly believes that hydrogen energy is one of the key directions for future sustainable development.

UFI GREEN; photo credit: UFI Group

Since 2017, UFI Group has been focusing on hydrogen applications in fuel cells and filtration technology, successfully engineering essential components like cathode air filters and deionizers. These components are applicable to a broad range of scenarios, from future heavy-duty trucks to light-duty commercial and passenger vehicles.

In China, UFI Group has carved some notable niches in the hydrogen energy sector. For instance, in June 2023, the Group announced its role as the supplier for the first domestically mass-produced hydrogen fuel cell sedan model, equipping it with cathode air filter modules.

Furthermore, in 2023 UFI Hydrogen has been launched, the NewCo fully concentrated on the hydrogen value-chain and dedicated to the research and development, implementation and industrialization of PEM – Proton Exchange Membranes MEA CCM – Catalyst Coated Membranes - strategic component allowing the separation of oxygen from hydrogen in water electrolysers for the production of green hydrogen - and also allowing the generation of electricity by recombining green hydrogen with oxygen in Fuel Cells - thus enabling the use of hydrogen in zero-emission mobility and stationary applications.

At the opening ceremony of the UFI GREEN, the Group Chairman Giorgio Girondi expressed his optimism about the potential of hydrogen energy, stating, "We have a very important investment plan in hydrogen because we truly believe it will be a key future energy source in the direction to reach the ambitious targets of carbon neutrality."

In summary, the inauguration of UFI GREEN, the Group's first green technologies factory in Jiaxing, underscores the company's deep commitment to the automobile industry's transition toward sustainable development. With the NEV market expanding rapidly, there is an escalating demand for efficient, environmentally friendly filtration and thermal management technologies. Capitalizing its strategic vision, UFI Group, with cutting-edge production technology and innovation capabilities, will sustain the green transformation of the automotive industry.