Company News

Auto parts producers undertake expansions

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Motherson Sumi will buy the stake jointly with its parent company Samvardhana Motherson Finance from Austria's Cross Industries that will hold 20% of Peguform after the transaction. Motherson Sumi, a joint venture between Samvardhana Motherson and Japanese component maker Sumitomo Wiring Systems, says it will be able to boost its plastic parts business with the acquisition. In March 2009, it purchased the rear-view mirror business of component maker Visiocorp for EUR25 million.

Established in 1959, Peguform has more than 7,000 employees at its 17 factories and five module centres in Germany, Portugal, Spain, Brazil, Mexico, China and Slovakia. It had sales of EUR1.37 billion last year.

Meanwhile, the joint venture being set up by Plastic Omnium will be 60% owned by the latter and 40% by Beijing Automotive Industry (BAIC). Plastic Omnium says the joint venture will create a cooperative relationship with BAIC and its partners Mercedes and Hyundai in China.

The joint venture will produce parts in the French firm's Beijing facility that currently makes fuel systems for Hyundai.

A wholly-owned unit of Compagnie Plastic Omnium of Levallois of France, Plastic Omnium has 12 plants in China for its two automotive businesses, exterior components and composites and fuel systems. BAIC sells its own branded cars as well as Mercedes and Hyundai vehicles.