17th
November 2008 - Affinia
Completes Key Strategic Acquisition in China
Premier Drum & Rotor Manufacturer in
China Expands Affinia's Global Footprint
Affinia Acquisition LLC, a
wholly owned subsidiary of Affinia Group Holdings Inc. and an affiliate
of Affinia Group Inc., has completed the acquisition of 85 percent of
the shares of HBM Investment Ltd., owner of Longkou Haimeng Machining
Co., Ltd. ("Haimeng").
Located in Longkou City,
Shandong,
China, Haimeng is one of the world's largest drum
and rotor manufacturing companies. Acquiring a majority interest in
Haimeng significantly expands Affinia's worldwide manufacturing capacity
for high-quality brake components. The acquisition also provides Affinia
with an opportunity to grow its global market share through Haimeng's
OEM and aftermarket presence in
Asia and
Europe.
Founded in 1997, Haimeng is a privately
held company serving both aftermarket and OEM customers in
Asia,
Europe and
North America. The company operates more than 1
million square feet of modern manufacturing facilities, featuring
state-of-the-art technology along with extensive research and
development capabilities.
"Our commitment to Affinia's channel
partners and customers is to offer the highest quality parts, regardless
of where they are made," said
Terry McCormack, President and CEO of Affinia. "Our
global business strategies are resulting in competitive packages that
include price, customer service and technical support. The combination
of these customer benefits is fueling growth in all of our markets
around the world."
David Overbeeke, President of Affinia's Global Brake &
Chassis Group, said: "Affinia's specifications for brake components are
the highest in the aftermarket, and we are following these
specifications in all of our global manufacturing centers. Haimeng has a
proven track record of meeting our exacting standards while also focused
on continuous improvement. Bringing Haimeng into our Affinia family
takes us another step closer to completing our worldwide
transformation."
According to Zhang Haibo, President of
Haimeng, the new partnership with Affinia will open up new opportunities
for product innovation and growth.
"We are looking forward to the synergies
that will result from our world class manufacturing facilities combined
with Affinia's global brands, depth of technical expertise and long-term
customer relationships," Mr. Zhang said. "This is a milestone event for
both companies that will result in long-term benefits to all of our
customers worldwide."
Source: Affinia Group Press Release