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Hutchinson strengthens position with Delta acquisition

Hutchinson S.A.’s Precision Sealing Systems unit is acquiring Danielson-based Delta Rubber Co., a manufacturer of high quality precision rubber components for the automotive, energy and industrial markets.

Terms of the transaction were not disclosed.

PSS operates a manufacturing facility in Baja, Calif., along with offices in Houston and Auburn Hills, Mich. The firm said in a statement that Danielson-based Delta Rubber brings a great opportunity to develop and manufacture some components closer to customers.

“This acquisition will further strengthen Hutchinson’s position in North America, offering its customers technological expertise in products and materials combined with a wider local presence,” Philippe Oliver, executive vice president of PSS activity, said in a statement.

Delta Rubber employs 65 at its Danielson plant and has been owned by NN Inc.—a diversified industrial company—since 2001.

Multitude of opportunities

“Joining Hutchinson returns us to the rubber industry on a global basis and presents a multitude of opportunities for growth and development for the company and its employees,” Jim Meagher, general manager of Delta Rubber, said in a statement.

NN said in a press release that its divestiture of Delta is part of its strategy to further align its plastics business, along with its recent acquisition of Precision Engineered Products.

“As outlined in our strategic plan, we continue to focus on balancing our portfolio of businesses to create a world class diversified industrial (company),” Richard Holder, NN president and CEO, said in a statement. “The divestiture of Delta Rubber was the next step in that process, as it further aligns our existing plastics business with our recent acquisition of Precision Engineered Products.”

According to NN’s website, the firm operated one other facility within its Plastic & Rubber Components unit—Caprock Manufacturing, located in Lubbock, Texas.

That plant is listed under the Precision Plastic Components Group.

According to NN’s third quarter SEC filing, the company completed its acquisition of Caprock in May for about $9 million in cash.

The unit in 2014 reported sales of $33.4 million, which represented 7 percent of NN’s $488.6 million revenues for the year.

Net sales for the third quarter increased $1.6 million to $11 million with income increasing to $600,000 compared to $200,000 in 2014.

NN said it will integrate Precision Engineered Products Holdings Inc. into the remainder of its Plastic & Rubber Components unit starting in the fourth quarter and rename the unit.

The firm’s deal to acquire Precision Engineered Products was finalized at the end of October. Holder said in a release that the acquisition is the largest in the company’s 35-year history.

Milestone purchase

The executive described the acquisition of Precision Engineered Products as “a transformational milestone that expands our market segment reach, broadens our portfolio of products, services and solutions, as well as expands margins and strengthens our global geographic footprint.”

Precision Engineered Products serves the medical, electrical, transportation and aerospace markets.

NN manufactures and supplies high precision metal bearing components, industrial plastic and precision metal components to a variety of markets on a global basis.

Headquartered in Johnson City, Tenn., NN has 42 manufacturing plants in North America, Western Europe, Eastern Europe, South America and China.

Hutchinson is a subsidiary of energy multinational Total S.A., based in Tour Total, France.

The unit manufactures vibration control systems, fluid management systems and sealing solution technologies with a focus on the aerospace, automotive and other industries.

Hutchinson generated $4.6 billion in 2014 revenues with more than 36,000 employees at 96 sites in 23 countries.

 

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Henniges Automotive Acquired by AVIC Automotive Systems Holding Co., Ltd.

Henniges Automotive Holdings, Inc., a leading supplier of a line of highly engineered vehicle sealing systems for doors, windows, trunks, lift gates, sunroofs and hoods using both rubber and plastics and anti-vibration systems for the global automotive market, announced it has been acquired by AVIC Automotive Systems Holding Co., Ltd. (AVIC Auto), a wholly-owned subsidiary of Aviation Industry Corporation of China (“AVIC”), which is also the professional platform for the development of automotive parts for the AVIC group. AVIC is a global Fortune 500 company (ranked 178 in 2014) and one of the largest state-owned enterprises in China, with its core business in the aviation industry.

As a progressively growing global supplier, Henniges Automotive designs, manufactures and sells dynamic sealing and anti-vibration solutions that keep vehicles quiet and dry for automotive original equipment manufacturers (OEMs) worldwide. Henniges recently has taken on various strategic growth moves to support customer programs in emerging markets around the world, and is in the process of expanding its global footprint with the addition of new facilities located in Mexico, China and Germany.

Douglas DelGrosso, president and CEO of Henniges Automotive, said: “We are encouraged about this acquisition by AVIC Auto, which will provide the capital and financial backing needed to sustain and grow our business, and ensure that the Henniges heritage, culture and name continue to thrive into the future. We are confident that AVIC Auto ownership will give Henniges Automotive further opportunities for continuous advancement in technology and solutions that drive positive results for our customers.”

This is one of the largest acquisitions by a Chinese company of a U.S.-based automotive manufacturing company in history; AVIC Auto also purchased Michigan-based Nexteer Automotive Group Ltd. in 2011. Henniges Automotive will benefit from AVIC Auto’s reputation as a technology and innovation leader, as well as its best-in-class solutions that result in value for customers. Additionally, as customers continue to turn to resources across the globe, this new acquisition will enhance Henniges Automotive’s worldwide capabilities and expand the Chinese market.

“This acquisition represents a long-term, strategic investment by AVIC Auto to sustain and grow the Henniges business, while keeping the successful leadership, culture, benefits and contracts associated with the company intact,” said Daen Lu, chairman of Henniges Automotive. “We are excited about this acquisition, and look forward to the addition of their significant expertise and the benefits it will bring to both of our companies.”

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Cooper Standard opens two facilities in China

Cooper-Standard Holdings Inc. (NYSE: CPS), the parent company of Cooper-Standard Automotive Inc. (“Cooper Standard”), yesterday unveiled two new facilities in China. The Company unveiled its second Kunshan facility, a manufacturing and test center, dedicated to fluid transfer and fuel and brake delivery systems. Later this week, the company will host an opening ceremony at its new facility in Shenyang, which will produce sealing systems.

“As Cooper Standard continues to grow in China and across the Asia Pacific region, these new facilities will further strengthen our market positions and enable us to better serve our customers,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “The further localization and expansion of our test capabilities is part of our long-term commitment to the Chinese Market and is also essential to our profitable growth strategy.”

The plant openings are the latest additions to Cooper Standard’s strategic growth in China through acquisitions, joint venture partnerships and organic growth in recent years.

Expanding the fluid transfer and fuel and brake delivery systems operation to its second Kunshan location, a growing satellite city of Shanghai, reinforces the Company’s ability to serve the area where there is a concentration of automotive customers. This expansion further builds on the Company’s commitment to the region following the opening of its Asia Pacific Technical Center in Shanghai last year to provide full support to customers.

The Shenyang sealing facility, based in the industrial heartland of Northeast China, further solidifies the Company’s leading position as the largest sealing manufacturer in the Chinese market. Earlier this year, Cooper Standard acquired majority ownership of its joint venture with Chinese domestic supplier, Huayu Automotive Systems Co. Ltd.

The Kunshan and Shenyang locations cover 25,060 square meters and 8,721 square meters respectively, producing innovative products utilizing the Cooper Standard Operating System, providing consistent manufacturing processes globally. Not only will the new facilities improve volume and product mix for Cooper Standard, but they are also expected to add over 500 employees to its skilled Chinese workforce, including 20 engineers to fully support the development of global platforms designed in Asia.

Cooper Standard has steadily built up local capacity since entering the Chinese market in 2003. With these two new facilities, the Company operates 11 manufacturing and technical facilities with 5,200 employees in the country, all adjacent to major OEM operations.

About Cooper Standard
Cooper Standard, headquartered in Novi, Mich., is a leading global supplier of systems and components for the automotive industry. Products include sealing, fuel and brake delivery, fluid transfer and anti-vibration systems. Cooper Standard employs more than 27,000 people globally and operates in 20 countries around the world. For more information, please visit www.cooperstandard.com.

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ExxonMobil offers new route to EPDM seal compounds

ExxonMobil Chemical has developed what it says is a novel approach for formulating its Vistalon EPDM compounds for automotive sponge weatherseals.The technology is said to produce a compound that can help to reduce the density of the sponge profile, while optimizing key properties such as long term ozone resistance and sealing.

The compound combines an amorphous, high-diene EPDM rubber with a propylene-based elastomer, called Exxon IT0316, ExxonMobil said in a June 29 release.“Using this new approach to tailor EPDM rubber compounds allows customers to reduce part cost while broadening their range of sponge profiles with differentiated properties,” said Thierry Hombert, global market development manager, specialty elastomers and butyl business at ExxonMobil Chemical.

The new formulation, based on metallocene polymerisation technology is said to enable developers to tailor properties through the precise control of the molecular architecture and co-monomer introduction.Tests on a semi-industrial ultra high-frequency extrusion line show that blowing-agent efficiency is optimised without compromising the sealing properties of the sponge profile, according to ExxonMobil.

“Compression load deflection and compression set are maintained, and density can be reduced by 10 percent, which provides the potential to reduce costs,” the firm said said. “The uncured, soft-sponge compound also exhibits more green strength, improving weatherseal handling.“Compounders can tailor the performance of the sponge weatherseal to produce a profile that has a similar density to an EPDM compound but with a higher CLD or a profile with a lower density but a similar CLD.”

Source: Rubber & Plastic News

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Cooper Standard Becomes Largest Chinese Automotive Sealing Manufacturer

Cooper-Standard Holdings Inc. the parent company of Cooper-Standard Automotive Inc. (“Cooper Standard”), announced the completion of its purchase of Huayu Automotive System Co.’s share in Huayu-Cooper Standard Sealing Systems Co., Ltd. on February 27, 2015. Cooper Standard is now 95 percent equity owner of the business. As a result of the transaction, Cooper Standard is now the largest automotive sealing manufacturer in the domestic Chinese market with nine manufacturing facilities and two technical centers, including its recently opened Asia Pacific Technical Center and headquarters in Shanghai.

About Cooper Standard
Cooper Standard, headquartered in Novi, Mich., is a leading global supplier of systems and components for the automotive industry. Products include sealing, fuel and brake delivery, fluid transfer and anti-vibration systems. Cooper Standard employs more than 27,000 people globally and operates in 20 countries around the world.

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Standard Profil opens new plant in Mexico

Europe’s second biggest sealing provider Standard Profil opened its globally 10th plant in Mexico. The Guanajuato plant will produce automotive sealing systems for North American automotive giants.

Automotive sealing manufacturing company Standard Profil expands its global operations to America. Its 10th plant, opened on 12th January, 2015 in Guanajuato-Mexico, will provide sealing systems to North American automotive giants. The plant which has been built from ground zero in 9 months with an investment of 36 million USD is a cutting edge facility equipped with Standard Profil’s best technologies.

Standard Profil CEO Turhan Semizer stated that this plant will have an important role in Standard Profil’s globalization strategy and said: “38 years ago, Standard Profil has started its journey in Turkey, and now it is Europe’s second biggest sealing provider with about more then 20% of the market share. We always aim to be closer to our customers and that’s why we are here, very close to the Automotive Global OEMs. We want to continue our success in North America as well. We believe in our new plant and colleagues in Mexico who will bring us to the goals we set for our common future. Our success will continue to grow as we move forward together as the Standard Profil family.”

Mexico is one of the leading players in North America by supplying automotive giants in its land and as a result withholding a great experience in the Automotive Industry. Standard Profil aims to turn these attributes to an advantage by transferring its technological skills and product quality gained until today, from this point in Mexico to the whole American automotive industry. With the strength and advantages provided by this production site, Standard Profil will be in a much more competitive position in North America.

 

source: Standard Profil website