The acquisition supports Phinia’s strategy to expand into carbon-neutral and carbon-free fuel technologies. SEM was previously owned by Swedish Electromagnet Invest AB, majority held by Procuritas Capital Investors V L.P.

Founded in 1915, SEM launched its first ignition systems for natural gas engines in 2000: since then, it has developed a range of fuel ignition products, injector stators, and linear position sensors for engines fuelled with natural gas, hydrogen, and other alternatives to diesel.

The aim of the project is to convert, rather than replace, current engines on the road, which would negate the need for “significant investment in supply chain manufacturing and assembly infrastructure”.

BorgWarner’s full-year financial year results included net sales of USD14.1bn, an increase of 12.4% when compared with 2022 (USD12.6bn). Gross profit was up too in 2023 at USD2.5bn (2022: USD2.3bn) with operating income of USD1.1bn, or 8.2% of net sales.

Plans by BorgWarner to spin off the Fuel Systems and Aftermarket segments were first announced in December 2022 under its “Charging Forward” strategy.

Borgwarner names senior executives, Brady Ericson and Chris Gropp to lead new entity.