Dana Corporation has conformed that it has completed dissolving its Mexican joint venture with Desc SA de CV, giving the parts maker full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, a new subsidiary.
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Dana and Desc have dissolved joint venture Spicer SA de CV, with Dana assuming full ownership of operations that manufacture and assemble axles, driveshafts, gears, forgings, and castings in which Dana previously held an indirect 49% interest.
Desc, in turn, has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51% interest.
Along with exchanging its minority interest in the joint venture, Dana also made a cash payment of $US19.5m to Desc.
“Taking full ownership of these core operations further solidifies our competitive profile,” said Dana chairman and CEO Mike Burns. “In particular, Dana expects to benefit from the addition of technologically advanced operations supporting our core axle and driveshaft businesses, as well as the manufacturing cost efficiencies that come with expanding our global presence in this key competitive location.”
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By GlobalDataWith the completed transaction, Dana has acquired full ownership of five manufacturing operations, which had combined sales – both to itself and to third parties – of $296m in 2005.
The facilities, Autometales and Ejes Tractivos in Mexico City, and Cardanes, Engranes Conicos and Forjas Spicer in Queretaro, produce light vehicle axle and driveshafts and a variety of related components.
As part of the transaction, Desc has assumed full ownership of Transmisiones y Equipos Mecanicos (Tremec) and Transmisiones TSP (TSP) transmissions, located in Queretaro, Mexico; Transmission Technologies Corporation (TTC) with operations in Knoxville, Tennessee; and the TF Victor aftermarket gasket operation in Mexico City.
Dana will sell aftermarket gaskets in Mexico through TF Victor and original equipment gaskets directly to engine and vehicle manufacturers.
