SPAIN/RUSSIA: Cie, Avtocom, ink car parts JV
Spain's Cie and Russia's Avtocom have agreed a joint venture to expand in Russia's growing autoparts industry and make acquisitions in the country, Cie said in a statement.
Under the agreement, Cie will own 35% of the venture while Avtocom holds 65%. Cie, Spain's largest components manufacturer, has the option to raise its stake to 50% in coming years.
With factories in the Kaluga auto industry zone near Moscow, Avtocom's customers include Volkswagen (whose plant there recently switched from SKD to CKD assembly for some models), PSA, Volvo, Gestamp and Visteon. The company has two main operating divisions, Sam and Kzae, with combined sales of EUR20m.
The fledgling concern, Cie-Avtocom, hopes to raise the total to EUR100m in three years, via acquisitions and other expansion initiatives.
"This joint venture will allow Cie Automotive to position itself in one of the emerging market's fastest growing and most promising markets," Cie said.
Cie has made several acquisitions in recent years to become an emerging markets parts-making giant. It not has a large presence in Brazil, Mexico, Eastern Europe and Asia.