Canada’s Magna International is to acquire the European operations of bankrupt US-based rival Cadence Innovation.
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Cadence Europe, which reported sales of about US$369m in 2007, supplies automotive interior and exterior plastic components and systems, including instrument panels and bumpers, to several European and Asian carmakers, Reuters reported.
All four European production sites are in the new EU member states: three in the Czech Republic and a fourth in Hungary, the report said.
Parent Cadence Innovation late last August filed for Chapter 11 bankruptcy protection, citing rising material costs and decreasing demand for larger vehicles, although its European operations were excluded from the insolvency proceedings.
“This acquisition expands our presence and manufacturing footprint in a key market,” Magna global exterior and interior systems COO Tom Skudutis said in a statement.
“Central and Eastern Europe are strategically important due to the competitive advantages afforded by the countries in this region.”
