PENDLETON — Madison County-based auto parts manufacturer and distributor Remy International, Inc., said Wednesday it had entered an agreement that "more than doubles" its alternator dealings.
The company, headquartered in Pendleton, says it plans to buy out the remaining 49 percent of a joint venture, originally forged by Delphi Automotive Systems China Ltd. and Hubei Super Electric Auto Motor Co. Ltd. in 1994. Remy (Nasdaq: REMY) claimed the majority share in 2004, when it bought Delphi's light-duty alternator business.
The deal still needs approval from the Chinese government, but everything is expected to be finalized within the next 30 days.
"Once this transaction closes, our operations in Wuhan and Jingzhou, which are located in the rapidly developing center of China, will provide a very strong base to satisfy the growing demand for both passenger and commercial vehicle manufacturers in China," said Ed Neiheisel, Remy's Senior Vice President and chairman of its China Group.
President Jay Pittas said Remy's investment "more than doubles our existing alternator capacity and significantly expands our starter business."
Pittas, who replaced former president and current board member John H. Weber earlier this year, said, "The payoff from these investments is already being realized as we win new business that will significantly expand our starter and alternator share of the China vehicle market."
He added the buy was an "important milestone within our global strategic plan."
Remy already operates on five continents and 10 countries worldwide, under the dual Delco Remy and Remy product brands.
"Over the next several years, more than half the growth in the global light vehicle market and an even higher percentage of growth in global commercial vehicle market will come from China," he said.
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