Automotive parts caster Nemak has acquired a German company, Rautenbach, which produced aluminum cylinder heads for gasoline and diesel engines at plants in Germany and Slovakia, according to news reports. Among Rautenbach’s customers are Audi, Volkswagen, Skoda, DaimlerChrysler, Porsche, BMW, Peugeot, and Citroen.
No purchase price was announced.
Nemak manufactures aluminum engine blocks and cylinder heads at plants in Monterrey, Mexico, Windsor, ON, and Havran, Czech Republic.
At the close of last year Mexcico’s Grupo Alfa reported it had increased its stake in Nemak to 85%, lowering Ford Motor Co.’s share of the joint venture to 15%. In January, Alfa reported $45 million had been allocated to Nemak for capital improvements in 2005 (as part of a total of $285 million for the entire group.)
The Rautenback purchase should be completed by the start of the second quarter of this year, reports say. The purchase is subject to regulatory approvals from Slovakia, Hungary, and Poland (where Rautenbach has plants) but has apparently been approved by German authorities.
Nemak views the purchase as market expansion. "By strengthening our presence in the two most important automotive markets, we can better capitalize on the global opportunities that our customers demand," stated Nemak president Manuel Rivera.