Sachs Automotive expects sales to grow about 12 percent to E2.5 billion this year - the company's fastest annual rate in 10 years.
Sales at the German supplier were up 16 percent in the first eight months of the year, helped by strong growth in the USA.
'We have positive indicators for the rest of the year,' said Hermann Sigle, deputy chairman of the board, at the Frankfurt commercial vehicles show in September.
Sachs has sold businesses with sales of almost DM1 billion (E506 million) since 1993.
Sachs is now focused on five areas: powertrains, chassis, shock absorbers, antivibration parts (under the Boge brand name) and aftermarket (under Sachs Handel).
Sachs is a market leader in most of these product areas.
Sachs' annual growth rate is expected to continue at around 10 percent through 2005. That will come from new products and expansion in North America, said a Sachs spokesman. In North America, Sachs has won major a outsourcing contract for torque converters from General Motors, and has increased production of shock absorbers in Mexico.
Sachs is the sole global shock absorber source for GM's new Epsilon platform.
'We have launched an ambitious development program that is aimed at the development of new markets,' said Sigle. 'Especially in Asia - China, Korea and Japan.'
Sachs is talking to a potential partner in Korea and plans to open a clutch plant in China next year.
Sachs has also seen rapid growth in the application of its dual mass flywheel on passenger car turbodiesels, particularly on Volkswagen models. The dual mass flywheel reduces vibration and noise associated with diesels.
In its last financial year Sachs' margins rose to 8 percent before tax and investment. 'We think we can improve on that,' said Sigle.
But higher pre-investment margins are 'necessary to survive,' he said, 'because of growing research and development costs.'
The number of engineers employed by the company has increased from 500 to 800 over the past few years. Sachs also has plans to double the size of its development center at its base in Schweinfurt, Germany.