DETTINGEN/ERMS, Germany (July 7, 2009)—Gasket maker ElringKlinger A.G. has increased its ownership to 88 percent in a Chinese subsidiary, Changchun ElringKlinger Ltd.
The firm said it purchased an additional 10 percent ownership in the business from the China state investment company State Machinery, Electronics, Light and Textile Industry Investment Corp. The deal was concluded June 30, and financial details weren't disclosed.
Changchun ElringKlinger supplies Chinese automobile manufacturers with cylinder-head and specialty gaskets, thermal shielding components and plastic housing modules for engines and transmission systems. ElringKlinger said the subsidiary generated sales of about $22.4 million in 2008.
ElringKlinger CEO Stefan Wolf said the company, recognizing the weakness of the European and North American automotive markets and the strengthening of the Asian markets, has established strong positions in China and India, as well as South Korea and Japan. The firm previously had acquired Sevex Group in China, and operates a plant in southern China, and opened its first facility in India earlier this year.
The company said its customer base already includes the majority of Indian and Chinese vehicle makers.