ESSEN, Germany – TMD Friction and HELLA have announced plans to establish a new joint venture. Under the brand name HELLA Pagid, the partners intend to distribute brake components for the worldwide automotive aftermarket. The jointly owned enterprise, in which each partner will have a 50 percent share, is to be established as an independent sales company with its headquarters in Essen, Germany. Subject to the required approval by the relevant competition authorities, the joint venture will start operations on Jan. 1, 2013.
The goal of the joint venture between TMD Friction and HELLA is to build up a leading global position in the supply of brake components for all on-road vehicles. The two companies say the joint venture will benefit from their respective areas of expertise. TMD Friction is a leading global manufacturer of brake pads, which, along with other components, have been marketed under the premium quality brand Pagid. In the future, these products will, with the exception of the British market, be distributed exclusively through the global HELLA trading organization. The companies say this cooperation will enable the aftermarket specialist to extend its product range with original equipment quality brake components under a strong brand and open up a further high value segment in the replacement parts aftermarket.
"For both companies the new HELLA Pagid joint venture is an outstanding opportunity to expand their global market position," said Carsten Albrecht, member of the HELLA management board, business division aftermarket and special OE. "Pagid brake friction is produced by TMD Friction, a group known for its excellent quality and cutting-edge technology. This brand, with a range of products completing the full braking system, is a natural fit within the HELLA product portfolio, perfectly meeting the high standards of our customers and our own product philosophy."
Since 2006, TMD Friction and HELLA have been cooperating in the wholesale business in Scandinavia and the Baltics. In 2010, the two companies began to intensify their cooperation, mutually reinforcing their respective positions in the Chinese aftermarket.
"As long-standing partners, we have already achieved a great deal and have excellent experiences together. This joint venture is the next logical step in our cooperation," said Josef Besting, senior vice president aftermarket at TMD Friction. "With HELLA Pagid we will in the future be able to deliver our customers worldwide the best possible combination of range, top quality and service."
