Tier one supplier Key Plastics on Tuesday (21 February) said it had completed a deal under which it sold a portion of its European operations in a management buy-out.

Effective 16 February, the newly-formed Innovative Components Technologies GmbH (ICT) of Germany became the owner and operator of former Key facilities in Wachtersbach, Lennestadt and Kierspe, Germany; Tachov, Czech Republic; and Borja, Spain.

Key retains operations, tied to its core businesses, at 12 locations in seven countries. Operations in Europe now consist of manufacturing and engineering facilities in Leiria and Vendas Novas, Portugal; Lohne, Germany; and Janovice, Czech Republic. Key also operates in the United States, China, Japan and Mexico. Core businesses include the engineering and production of automotive handles, bezels and clusters, mechanisms and air registers, highly decorated trim components, and precision-moulded engine compartment products.

"This transaction is a very positive step for both companies," said Terry Gohl, CEO of Key Plastics. "For Key, it represents the completion of a multi-year portfolio transition which allows us to focus on our global core products, where we continue to recognise significant growth across all regions. For ICT, they assume a well-established operating presence across Europe - one that is positioned to support customers with high quality, just-in-time products, and allows focused local management to lead the growth of the company going forward. This is a win-win for both parties."

"The management team at ICT sees great potential for this business, and looks forward to continuing to provide superior service across our products lines," said Carsten Paris, CEO of ICT. "The business has excellent people, facilities, technology and customers, all of which will contribute to our future success."