Hatz Components becomes part of new JV

By Mike Brezonick22 May 2023

An era spanning more than four decades has come to an end, as Motorenfabrik Hatz GmbH & Co. KG, is no longer the majority shareholder of its components business.

The Ruhstorf an der Rott, Germany, engine and power drive systems supplier has entered into a joint venture with Berylls Group GmbH, a Munich, Germany-based specialist for business development in the industrial and automotive sectors. Through the joint venture and following an unspecified capital investment, Berylls has acquired a majority stake in Hatz Components GmbH and will be responsible for the management and growth of the company.

Motorenfabrik Hatz will maintain a minority share of Hatz Components and said it will invest resources freed up by the move to continue its development of engines and drive systems technologies.

“Berylls will optimally position Hatz Components to meet the challenges of the changing components business,” said Wolfram Hatz, chairman of Motorenfabrik Hatz and previous majority shareholder of Hatz Components. “We welcome the Berylls Group’s entry into Hatz Components and look forward to the trusting cooperation between our companies.”

Motorenfabrik Hatz, which was founded in 1880, has been active for 42 years in the supply of low-volume, precision metal parts such as connecting rods, crankshafts and machined components for international automotive, commercial vehicle and agricultural equipment manufacturers. While it maintained a level of business success, it became increasingly difficult over the years for Motorenfabrik Hatz to devote sufficient capital resources to grow the components business.

This became especially critical as automotive industry’s focus has shifted toward electric drive solutions. With the resulting reduction in internal combustion engine-relevant components in automotive OEM in-house production, the demand for open-market components has increased.

Hatz took a major step toward attracting investors in late 2021, when it spun the components business off into the independent Hatz Components GmbH, with Motorenfabrik Hatz as the sole shareholder. Following that, the company sought new investors, a process that came to fruition with the addition of Berylls.

Berylls’ aim is to further develop the company with the existing management team and employee base and to drive internationalization. As a well-known company in the automotive industry, Berylls is positioned to help grow the Hatz Components business, opening up new target markets and sales regions as well as implementing a comprehensive strategy for the future.

At the same time, the deal is beneficial to Motenfabrik Hatz in that it ensures its supply of connecting rods and crankshafts for its industrial engines. The Hatz engine business is Hatz Components’ largest customer and is expected to remain so for the foreseeable future.

Both Motorenfabrik Hatz and Hatz Components will remain at their current location in Ruhstorf, near Passau, Germany. In addition, Bernd Krüper, who was previously CEO of Motorenfabrik Hatz and became CEO of Hatz Components during its spinoff in 2021, will maintain his leadership of the components business, with Berryls providing support at the management level with advisory executives.

The new CEO of Motorenfabrik Hatz is Dr.-Ing. Simon Thierfelder, who has been at the company for more than 11 years and has held a number of engineering positions and most recently served as the company’s technical managing director. Along with his previous areas of responsibility for development and operations, Thierfelder also takes over the management of sales, marketing, service and digitalization.

“This step frees up the resources we need to continue to perfectly serve the needs of machine manufacturers and operators in our core markets in the future,” Thierfelder said. “In the future, the engine factory will be able to focus fully on its core business and the expansion of its portfolio, as well as invest even more in innovation. This applies both to the expansion of our combustion engine business and to the development of leading digital and electrified solutions.

“Positioned in this way, we will continue to enable machine manufacturers and operators to do their work as efficiently and conveniently as possible – regardless of the drive technology.”