METALSA SELLS ITS STRUCTURAL COMPONENTS FOR PASSENGER CARS DIVISION
- In order to finalize the transaction, the regulatory approval of the relevant authorities is required, which is expected during the first quarter of 2020.
Monterrey, Nuevo Leon (Mexico). Metalsa S.A. de C.V., a global Mexican company in the production of metal structures for light and commercial vehicles of the automotive industry, reached an agreement with Martinrea International Inc. for the sale of its Structural Components for Passenger Cars Division. Martinrea is a diversified and global automotive group based in Toronto, which is dedicated to the design, development and manufacturing of lightweight, high-value propulsion structures and systems.
In order to complete the transaction, certain conditions must be completed, including the regulatory approval of the corresponding authorities.
The Structural Components for Passenger Cars operations include six production facilities in Germany, the United States, Mexico, South Africa and China. This divestment will allow Metalsa to focus on its strategy for chassis and commercial vehicles in which Metalsa is a leader in the market, as well as on the launch of electrification projects for cargo vehicles.
“This is a win-win process. The customer wins by having a more extensive offering of products with the new Martinrea. Martinrea will generate synergies and complement its product portfolio by scalability to the Structural Components for Passenger Cars Division. Metalsa wins by being able to focus on its chassis, commercial vehicles and electrification strategies. The people in Structural Components for Passenger Cars will realize new opportunities in a culture very aligned with that of Metalsa”, said Leopoldo Cedillo, CEO of Metalsa.
Regarding the transition process, Leopoldo Cedillo commented that both companies will work closely together to complete the transaction and facilitate a seamless operational transition during the first four months of 2020.
“The process will be made very orderly and with a vision of the future for the benefit of customers, investors and employees, always with ethics and integrity, as marked by the group's values. We will continue to contribute to the future of mobility structures, providing sustainable solutions for the next generations”, Cedillo stated.
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