Schaeffler is to sell its Magdeburg-based subsidiary, Schaeffler Motorenelemente to the family-run Weber Group, with the contract for sale was signed this week (21 December).

Schaeffler Motorenelemente, an indirectly held 100% subsidiary of Schaeffler, specialises in the mechanical processing of cylinder heads and other complex housings for the automotive industry, which are not an integral part of the Schaeffler Group’s core business.

During the 2015 financial year, the company generated sales of around EUR42m (US$44m). All the company’s 185 employees will be retained by the new owner. A long-term agreement for the company to supply components to the Schaeffler Group was also concluded as part of the transaction.

“We have decided as part of our ‘Mobility for tomorrow’ strategy to concentrate on selected core competencies and future fields of development,” said Schaeffler CEO, Klaus Rosenfeld.

“The sale of Schaeffler Motorenelemente is a further step in this direction. It will allow us to free up resources we can then invest in future fields of development that are important for us.”

The Weber Group manufactures drive components for passenger cars as well as commercial and recreation vehicles.

The closing of the transaction is expected for the first quarter of next year, with details not revealed.