German engineering group Mannesmann Rexroth has finalised an agreement with Sun Hydraulics for joint product development, and will use Sun’s cavity specification in screw-in cartridge valves, the company announced last week at Hannover.
Mannesmann plans to use the alliance to more than double the firms’ combined market share to 20% of the $1bn (£620m) world valve packages market by 2005. It can also start licensed production of Sun’s products, a move which could see Sun emerge as a world standard valve.
Sun turned over $71.9m last year, dwarfed by Rexroth’s sales of e 2.5bn (£1.6m). But Sun is market leader with about 7%. Rexroth’s share is some 2%.
Sun president Clyde Nixon said the move would give him access to Mannesmann Rexroth’s network across 70 countries.
`Sun has cartridge valves with a cavity that is not standard,’ said Duane Collins, chief executive officer of Parker Hannifin. `It needed someone to help build up the market for the concept.’
The new product range covers valves up to 350 bar.