STUTTGART, Germany — MAHLE has signed a Memorandum of Understanding (MOU) with RIKEN Corp. for global cooperation promoting each company’s strengths in the areas of piston rings, camshafts and other products.
In addition to the expansion of the already existing Allied Ring Corp., a 50-50 North American joint venture manufacturer of piston rings owned by MAHLE and RIKEN, both companies will study and promote global collaborative projects making use of existing resources.
MAHLE and RIKEN will promote joint cooperation in the areas of technical development and manufacturing of piston rings, engine components and systems, camshafts and other products in line with day-by-day advancement of engine technology.
In other MAHLE news, the company has entered into a stock purchase agreement with Grupo Condumex, S.A. de C.V., Mexico to acquire 51 percent of the shares of Promotora de Industrias MecÁnicas, S.A. de C.V. (Promec) which owns Sealed Power Mexicana, S.A. de C.V. and Sealed Power Autopartes, S.A. de C.V. MAHLE previously acquired 49 percent of Promec as a result of its acquisition of Dana’s engine products group.
Promec produces cylinder liners and piston rings for passenger car and heavy duty applications for the OE and aftermarket businesses. The agreement includes among others the acquisition of the aftermarket brand "Carpro."
The planned acquisition includes a total of about 1,100 employees in four production plants in Mexico, which are located in Aguascalientes, Naucalpan, Ramos Arizpe and Santa Catarina. In 2006 the business generated sales of $67 million.
The transaction is expected to close by the end of June.
