German tyre and car parts maker Continental AG said on Wednesday it had bought a wheel sensor business with operations in Japan and China, expanding its presence in the fast-growing Asian car market, according to Reuters.
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The German company reportedly said it joined with its Japanese partner Nisshinbo Industries to buy Nagano Japan Radio Co.’s (NJRC) wheel sensor unit as well as its Chinese subsidiary.
“These acquisitions represent a further landmark in our long-term strategy for the Asia region,” Continental deputy chairman Wolfgang Ziebart said in a statement cited by Reuters though the company gave no financial details of the deals.
NJRC produces sensors used in anti-lock braking systems, with much of its production at its Chinese plant, employs about 1,350 people and had sales of about €55 million ($US65 million) in 2002, Reuters noted.
Continental is expecting sales of its high-tech automotive electronics to grow twice as fast as its traditional tyre business over the coming years and has said in the past it is searching for a Chinese partner, the news agency added.
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By GlobalDataThe company is aiming for an increase in operating profit to significantly above €700 million ($825.9 million) this year, from 694 million in 2002, Reuters said.
