Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Goodyear to install dynamic driving simulator at Luxembourg site
      Nokian Tyres to add up to 150 jobs at Dayton, Tenn., factory
      Biden signs executive order, prioritizes U.S.-made EVs, PPE
      Conti starts production of ‘HL' load index tires for select OE customers
    • Order takes Michelin-Enviro partnership a step closer
      Goodyear to install dynamic driving simulator at Luxembourg site
      Nokian Tyres to add up to 150 jobs at Dayton, Tenn., factory
      Conti starts production of ‘HL' load index tires for select OE customers
    • NewAge Industries promotes two from within
      EnergyEne gets grant to focus on guayule latex
      DuPont investing in Liveo line of silicone products
      A change at the top for Stockwell Elastomerics
    • NuSil's high-purity silicones are taking off
      Audia Elastomers launches new range of sustainable TPEs
      Order takes Michelin-Enviro partnership a step closer
      Phillips Carbon Black expanding capacity at site in India
    • NuSil's high-purity silicones are taking off
      NewAge Industries promotes two from within
      Rubber Division scholarships, stipends available
      DuPont investing in Liveo line of silicone products
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • NewAge Industries promotes two from within
      A change at the top for Stockwell Elastomerics
      Angelos Papadimitriou to leave position with Pirelli after six months on job
      Tero Peltomaki named Cimcorp CEO
    • Biden signs executive order, prioritizes U.S.-made EVs, PPE
      ITC votes to keep duties in place on China P/LT tire imports
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      NLRB certifies USW as bargaining unit for Kumho Tire plant in Georgia
    • Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
      Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
    • Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Goodyear to install dynamic driving simulator at Luxembourg site
      Nokian Tyres to add up to 150 jobs at Dayton, Tenn., factory
      Biden signs executive order, prioritizes U.S.-made EVs, PPE
      Conti starts production of ‘HL' load index tires for select OE customers
    • NuSil's high-purity silicones are taking off
      NewAge Industries promotes two from within
      Rubber Division scholarships, stipends available
      DuPont investing in Liveo line of silicone products
    • EnergyEne gets grant to focus on guayule latex
      Rubber Division scholarships, stipends available
      Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2022 ITEC
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 12, 2014 01:00 AM

Henniges acquires JV, forms strategic alliances

Chris Sweeney
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Douglas DelGrosso, Henniges president and CEO

    AUBURN HILLS, Mich.—It has been a busy three months for Henniges Automotive Holdings Inc.

    The firm just acquired the remaining 40 percent of Beijing Wanyuan-Henniges Sealing Systems Co. Ltd., its Chinese joint venture with China Academy of Launch Vehicle Technology.

    Henniges and the academy started the joint venture in 1995. The Chinese entity now will operate under the Henniges Automotive name.

    The firm would not disclose financial details of the transaction.

    The firm also agreed to a strategic alliance with AD Plastik d.d.'s facility in Togliatti, Russia. The partnership is focused on supporting the growth of key automotive original equipment manufacturers.

    AD Plastik manufactures plastic products—ranging from door paneling and instrument boards to ashtrays and ceiling light fixtures—for the automotive industry.

    Its strategic alliance with AD Plastik is the third such strategic alliance since November. Henniges also entered similar agreements with Amee Rubber Industries Pvt. Ltd. and Burkool S.A.

    Amee produces sealing systems and molded rubber parts for automobiles throughout India. The firm, headquartered in Mumbai, India, operates a plant in Gujarat, India.

    Burkool is a sealing components manufacturer based in Buenos Aires, Argentina.

    "Part of our plan is basically to have an answer for any region that our major customers operate in," said Douglas DelGrosso, Henniges president and CEO. "We think we've satisfied that now. That was an issue that existed 18 months ago. Many of our auto makers are building off a global platform. They've determined that it's more efficient for them to single source to suppliers who have the ability to do the same."

    More control, more flexibility

    Henniges established Wanyuan Henniges at a time when joint ventures were the only way western companies—particularly automotive supply companies—could enter the Chinese market, DelGrosso said. The firm always had wanted complete control over its interest in China. The opportunity presented itself when its partner expressed an interest to leave the joint venture for its own strategic reasons.

    "It was a necessary structural entry point," DelGrosso said. "It's operated very, very well through the years. But as things changed and the market evolved in China, western companies were allowed to set up independent wholly owned operations. Many of the automotive suppliers wanted to pursue that direction instead of relying solely on a joint venture."

    The purchase integrates five Chinese manufacturing plants and a technical center into its global profile: Chengdu, Tianjin, Changchun, Tieling and Beijing—which also houses the technical center.

    DelGrosso said one of the big advantages of sole ownership is efficiency. Henniges now can make decisions quicker without having to consult a partner who, in some cases, may not have the same long-term view as Henniges.

    "When you have a partner that is perhaps less interested in the industry, they may be a reluctant participant on longer-term strategic decisions," DelGrosso said. "We can move quicker and only have to satisfy ourselves on the logic of our business decisions."

    A big asset in assuming total control of Wanyuan Henniges is the elimination of the non-compete agreement it entered with the China Academy as part of the joint venture.

    The agreement prohibited Henniges from talking with other potential partners in the region, but now Henniges has the freedom to look at acquisitions as a viable strategy for future growth in China.

    DelGrosso said Henniges' business has grown significantly since 2011 and projects that by 2017, the firm will nearly double its Chinese sales. It plans to make significant investments over the next five years to bring three other Chinese facilities that launched over the last 18 months to full capacity.

    "We obviously see China as the growth market in the automotive business," he said. "It's important to have that kind of control over your destiny in the most rapidly growing market that is out there."

    Wanyuan Henniges employs more than 1,500 to design, develop and manufacture sealing products for customers that include FAW-Volkswagen Automobile Co. Ltd., FAW Car, Dongfeng Peugeot Citroen and Shanghai Volkswagen.

    Henniges said Wanyuan Henniges recently began providing production parts for a global General Motors program.

    Getting its feet wet

    Henniges' three strategic alliances are in regions where the firm does not have a manufacturing presence. The agreements allow Henniges to utilize extra capacity in the three suppliers' manufacturing plants for production if business is awarded to Henniges.

    "Currently we don't have the critical mass to establish a wholly owned entity," DelGrosso said. "We can't build a plant and operate it effectively from a financial standpoint because the revenue stream isn't there. It allows us to satisfy the needs of some of our customers who want suppliers like us to have capability in any region that they operate in, but don't currently offer enough business for us to put up a stand-alone facility."

    Henniges would bring each company business that allows them to fill capacity that otherwise sits idle. In exchange, DelGrosso said, the various companies would gain exposure to the advanced technology Henniges possesses, which would help them from an operating efficiency standpoint.

    Henniges also gets a taste of how to operate in a new region.

    "If our business grows in these regions to the point where we gain critical mass, we can set up our own facility," DelGrosso said.

    "Along the way we're gaining insight on how to operate in these regions that currently we have limited experience and knowledge operating in."

    The firm operates three plants in Europe—in Rehburg, Germany, and in Mlada and Hranice, Czech Republic—with technical centers in Viersen, Germany, and at the Hranice site.

    In North America, the company has five plants: Frederick, Okla.; New Haven, Mo.; Reidsville, N.C.; Keokuk, Iowa; and Oakville, Ontario. Its global headquarters in Auburn Hills, Mich., also houses its North American technical center.

    Henniges operates three Mexican facilities in Guadalajara, Torreon and Gomez Palacio.

    Henniges provides automotive original equipment manufacturers with sealing systems for doors, windows, trunks, lift gates, sunroofs and hoods. The company also supplies the automotive market with anti-vibration products, encapsulated glass and other rubber components.

    Related Articles
    Henniges Automotive, Indian supplier form partnership
    Henniges forms alliances to support OEMs
    February slow for U.S. auto sales
    Gates, Veyance deals may follow different paths
    Chinese firm could pursue Henniges acquisition
    Henniges breaks ground on expansion in Mexico
    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION