Chinese automotive supplier Ningbo Jinfeng Auto Parts plans acquisition of German competitor Grammer AG
5. July 2018The management of Grammer AG reacted positively to the offer and supported the takeover project. Ningo Jifeng Auto Parts already holds 25 percent of Grammer’s shares following an increase in October 2017. The contract includes a job guarantee over 7.5 years for the employees of Grammer.
The offer from the Chinese comes just at the right time for the German automotive supplier in an attempt to further reduce the equity share of the Bosnian investor Hastor / Prevent Group.
In the past, the supplier Prevent Group, known as a “rebel”, had some difficulties with its business partners, including Volkswagen. This also affected Grammer AG when placing orders. Now, they hope to profit from the takeover twice, from new orders in Germany as well as from Ningbo Jinfeng in China.
Ningbo Jinfeng Auto Parts is an automotive supplier in China specializing in the development and production of automotive seat components, including headrests and armrests. The company was founded in 1996 and is headquartered in Ningbo south of Shanghai. More than 2,600 employees work at 8 locations in China. Sales in 2015 amounted to 155 million euros. They already own a company in Europe, the Jinfeng Interior Automotive with production sites in the Czech Republic and Bosnia-Herzegovina.
Grammer AG is headquartered in Amberg, southeastern Germany. The corporation specializes in the development and manufacture of components and systems for the interior decoration of cars, as well as seats for commercial vehicles, buses and trains. Two new plants were opened in China as early as 2005, followed by expansion into the Russian truck market in 2008 and the expansion of the center console business in Asia and the North American free trade zone NAFTA in 2010. Shortly before the purchase offer from Ningbo, Grammer acquired the American Toledo Molding & Die Inc. (TMD) for approximately $ 271 million.
The management and the executive board of Grammer have already waved the takeover by Ningbo Jinfeng, the approval of the German authorities is considered safe.
Many parts produced by Grammer and Ningbo Jinfeng need a CCC certification for the Chinese market.
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