Spanish auto parts maker Cie Automotive and Brazil’s Durametal have signed a joint venture to manufacture car components for sale in global markets, Cie said in a statement late on Friday (15 September).
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As part of the deal, Cie will pay EUR19m to take an undisclosed “significant” stake in Durametal.
Under the venture, the two companies will make brake drums and wheel hubs for sale globally.
Cie said it would contribute technological know-how to the venture, which will supply components to Mercedes-Benz, Scania, Volvo, Ford and Volkswagen.
The agreement will boost Cie’s leadership in the Brazilian market, help it sell new products to the US, and diversify its overall product range, chief executive Ignacio Martinez said.
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By GlobalDataThe new company, to be located in Maracanau in Brazil’s Fortaleza state, is expected to achieve sales of EUR45m this year.
With 400 workers, Durametal makes 6,000 tonnes of components a month. Cie employs 9,000 people in 35 factories around the globe.
Ivan Castano
