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ElringKlinger Group acquires majority stake in Turkish company
New production company in Turkey
The agreement on the acquisition of shares was completed on October 27, 2009, following the conclusion of negotiations with the owner family. Thus, the takeover became effective immediately. The former owner has retained an interest of 10%.
The purchase price - including liabilities incurred by Ompas¸ - is towards the lower end of the single-digit million range. Employing 45 people, the company generated sales revenue of approx. EUR 3 million in 2008. The operating margin is within the single-digit range. The core products manufactured by Ompas¸ are heat shields for the thermal shielding of a vehicle's engine, transmission and exhaust tract. Additionally, the portfolio comprises metal components and wheel rims. Among others, the company's customer base includes BMC, vehicle producer and Fiat importer Tofas as well as Ford Otosan.
In future, the enterprise will presumably trade under the name of ElringKlinger Türkei, S.A.
Numerous contracts from Turkish vehicle manufacturers
ElringKlinger has received significant orders from international vehicle manufacturers - principally from Asia - with production facilities in Turkey as well as from the Turkish automotive industry, thus necessitating a local production base. In acquiring Ompas¸, ElringKlinger has created a fast-track opportunity to establish domestic operations with its own production enterprise. For this purpose, the facility in Bursa is to undergo further expansion, including additional automated systems. Beyond shielding technology, the portfolio marketed in Turkey is to be extended to include other product groups. In the next three years, the new Turkish subsidiary will be looking to expand its revenue to over EUR 10 million.
The Turkish automobile market is expected to generate solid growth in the coming years, not least because of Turkey's favorable age demographics, with a very young population. Whereas Europe has 307 cars per 1000 inhabitants, Turkey currently numbers just 95. On this basis, ElringKlinger sees solid potential for growth.
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