PENDLETON, Ind. Remy International Inc. announced that it has signed a definitive share purchase agreement with its Chinese joint venture partner, Hubei Super Electric Auto Motor Co. Ltd. (HSE), to acquire the remaining 49 percent of the Remy Hubei Electric Co. Ltd. (REH) joint venture.
This joint venture was originally formed by Delphi Automotive Systems China Ltd. with HSE in 1994. In 2004, Remy acquired a 51 percent ownership of REH as part of Remy’s purchase of Delphi’s light duty alternator business.
"This is an important milestone within our global strategic plan. Over the next several years, more than half the growth in the global light vehicle market and an even higher percentage of growth in global commercial vehicle market will come from China,” said Jay Pittas, Remy International Inc. president and CEO. “The REH acquisition, in combination with our investment in Wuhan, more than doubles our existing alternator capacity and significantly expands our starter business. The payoff from these investments is already being realized as we win new business that will significantly expand our starter and alternator share of the China vehicle market."
Ed Neiheisel, Remy International Inc. senior vice president and chairman, China Group, said, "We are very pleased to have entered into an agreement to acquire full ownership of our REH joint venture. We have filed for the requisite government approvals and expect to close the transaction in the next 30 days. Once this transaction closes, our operations in Wuhan and Jingzhou, which are located in the rapidly developing center of China, will provide a very strong base to satisfy the growing demand for both passenger and commercial vehicle manufacturers in China."
In other news, Remy received the 2012 Masters of Quality Award from Daimler Trucks North America LLC (DTNA). It is the seventh occasion and fifth consecutive year where Remy has received this honor.
"Being awarded the Masters of Quality is a major achievement and having won seven times certainly puts Remy in an exclusive group of suppliers," stated Paul Romanaggi, general manager, quality and supplier management at Daimler Trucks North America.
2012 marked the 25th year DTNA has acknowledged its North American component manufacturers who meet or exceed the company’s solid quality standards and exhibit a commitment to continuous improvement to the quality of products and processes.
"We take great pride in receiving the Masters of Quality Award from Daimler Trucks North America, " Pittas said. "We appreciate the recognition for our performance. The Remy team is passionate in driving for best-in-class quality and dedicated to continuous improvement. This award validates the efforts of our entire team."
The Remy manufacturing facility, which is located in San Luis Potosi, Mexico, supplies Delco Remy heavy duty alternators and starters to Daimler Trucks North America. It also provides new and remanufactured alternators, starters, and service parts to the Freightliner and Thomas Built dealership network.