Tuesday, March 12, 2013
Tokai Rubber Buying Brazilian Autoparts Maker
NAGOYA (Nikkei)--Tokai Rubber Industries Ltd. (5191), the world's largest supplier of automotive anti-vibration rubber products, announced plans Monday to acquire a Brazilian autoparts manufacturer for roughly 1.5 billion yen.
The Japanese firm will buy Produflex, which makes anti-vibration rubber parts for such locally operating automakers as Italy's Fiat SpA. The Brazilian firm has some 430 workers and logged sales of about 1.5 billion yen in 2012.
Tokai Rubber's factory network in South America will grow to five locations through the deal, which brings onboard its first production site for anti-vibration rubber products in the region. It hopes to increase sales to European and other automakers that assemble vehicles in Brazil.
Tokai Rubber has decided to acquire several foreign parts manufacturers this fiscal year, including companies in Italy and Germany.
(The Nikkei, March 12 morning edition)