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ElringKlinger acquires additional interests in Chinese subsidiary Changchun ElringKlinger Ltd
Dettingen/Erms/Stuttgart, (PresseBox) -
MDAX-listed ElringKlinger AG is strengthening its position in China and has acquired an additional 10.0% ownership interest in the subsidiary Changchun ElringKlinger Ltd. from the state investment company State Machinery, Electronics, Light and Textile Industry Investment Corporation, Changchun. The increase in ElringKlinger's ownership interest to now 88.0% was executed effective from June 30, 2009, following entry in the Companies Register and the conclusion of the official authorization procedure by the competent supervisory authority.
Changchun ElringKlinger Ltd. generated sales revenue of approx. EUR 16 million in 2008 and achieved an operating margin within the lower double-digit range. The company had already been included within the consolidated group prior to the latest transaction. Both parties agreed not to disclose details of the exact purchase price. It was within the lower single-digit million range. The company supplies Chinese automobile manufacturers with cylinder-head and specialty gaskets, as well as thermal shielding components and plastic housing modules for engines and transmission systems.
The Chief Executive Officer of ElringKlinger AG, Dr. Stefan Wolf, is confident of the prospects for growth within the Asian region: "Given the weakness of the European and North American automotive markets, over the coming years a sizeable part of growth within our industry will be attributable to the Asian markets. With this in mind, we have established a strong position in China and India in particular but also in Korea and Japan. In China, as the leading supplier of flat gaskets, we already offer our full product range from local manufacturing facilities."
ElringKlinger had further reinforced its position in China through its acquisition of the SEVEX Group. Located in the south of the country, the subsidiary ElringKlinger China, Ltd. in Suzhou - a former SEVEX company - is now the second production facility operated by the ElringKlinger Group in China. Furthermore, the ElringKlinger Group commenced production at its first Indian-based facility in Ranjangaon, near Pune, in early 2008. The company's customer base already includes the majority of Indian and Chinese vehicle manufacturers.
Changchun ElringKlinger Ltd. generated sales revenue of approx. EUR 16 million in 2008 and achieved an operating margin within the lower double-digit range. The company had already been included within the consolidated group prior to the latest transaction. Both parties agreed not to disclose details of the exact purchase price. It was within the lower single-digit million range. The company supplies Chinese automobile manufacturers with cylinder-head and specialty gaskets, as well as thermal shielding components and plastic housing modules for engines and transmission systems.
The Chief Executive Officer of ElringKlinger AG, Dr. Stefan Wolf, is confident of the prospects for growth within the Asian region: "Given the weakness of the European and North American automotive markets, over the coming years a sizeable part of growth within our industry will be attributable to the Asian markets. With this in mind, we have established a strong position in China and India in particular but also in Korea and Japan. In China, as the leading supplier of flat gaskets, we already offer our full product range from local manufacturing facilities."
ElringKlinger had further reinforced its position in China through its acquisition of the SEVEX Group. Located in the south of the country, the subsidiary ElringKlinger China, Ltd. in Suzhou - a former SEVEX company - is now the second production facility operated by the ElringKlinger Group in China. Furthermore, the ElringKlinger Group commenced production at its first Indian-based facility in Ranjangaon, near Pune, in early 2008. The company's customer base already includes the majority of Indian and Chinese vehicle manufacturers.
