EANS-News: ElringKlinger extends its position in Asia - Takeover of Korean
joint venture and new plant in Indonesia
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Global Expansion
Dettingen/Erms (euro adhoc) - ElringKlinger extends its position in Asia -
Takeover of Korean joint venture and new plant in Indonesia
Dettingen/Erms (Germany), February 6, 2013 +++ Automotive supplier
ElringKlinger AG has announced the full takeover of Korean joint
venture ElringKlinger Korea Co., Ltd. in Changwon, South Korea,
effective from February 1, 2013. The transaction in respect of the
sale to ElringKlinger AG has already been closed.
In 2012, the Korean joint venture generated sales revenue of approx.
EUR 13 million. ElringKlinger AG acquired the remaining 50% interest
in ElringKlinger Korea Co., Ltd. from the owner family, thereby
becoming the sole owner of the enterprise. Specific details of the
purchase price are subject to a non-disclosure agreement; the
consideration paid was in the mid-single-digit million range. Having
previously been included in the Group's accounts on a proportionate
basis, the enterprise is to be fully consolidated as of February 1,
2013.
The joint venture produces cylinder-head and specialty gaskets, heat
shields and plastic housing modules. The acquisition will allow
ElringKlinger to cement its position in the Asian market and further
expand its business relations with Korean vehicle manufacturers.
In parallel, a new production plant in Indonesia is scheduled to
commence operations. In setting up its own manufacturing facility in
Greater Jakarta via the Japanese joint venture ElringKlinger Marusan
Corporation the ElringKlinger Group is creating an initial stepping
stone for business in the ASEAN region. The main focus is on supplying
Japanese car and truck makers. Operating with its own production plant
for cylinder-head and specialty gaskets as well as heat shields,
ElringKlinger has thus established a base at the heart of the booming
ASEAN market.
Headquartered in Dettingen/Erms, the ElringKlinger Group now generates
23% of consolidated sales (including exports) in Asia. The Group has
seen a surge in the number of ongoing development contracts from
manufacturers based in Asia, with 2012 producing a particularly strong
boost. In this context, ElringKlinger's expertise in the field of
sealing and shielding technology for compact and highly efficient
downsized engines as well as in the area of lightweight construction
has been a key factor. With a rapidly expanding population and rising
income levels, the ASEAN region - alongside China - is considered to
be one of the most attractive growth markets for the automotive
industry. Many of the countries in this region use the European
Union's Euro emission standards as a basis for their own legislation
within this area, thus also creating considerable growth potential for
ElringKlinger in the field of exhaust gas purification technology.
Further inquiry note:
ElringKlinger AG
Investor Relations / Corporate Communications
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-137
E-Mail:stephan.haas@elringklinger.com
end of announcement euro adhoc
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company: ElringKlinger AG
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
phone: +49(0)7123 724-0
FAX: +49(0)7123-7249000
mail: info@elringklinger.com
WWW: http://www.elringklinger.com
sector: Automotive Equipment
ISIN: DE0007856023
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, regulated dealing:
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English