Haldex AB has reached an agreement with Suzuki Metal Industry Co., Ltd., a Japanese manufacturer of steel wire, to divest its division Garphyttan Wire. The transaction is expected to be completed during the period April to June 2009 when the final purchase price will be confirmed.
As announced earlier this year after the acquisition of Concentric, Haldex has actively evaluated structural options in order to optimize the Group structure. Hence, Haldex’s strategic rationale for divesting Garphyttan Wire is to focus on segments where the Group can achieve intra-group synergies and sustainable market positions based on innovative and leading products, providing a foundation for long-term growth and good profitability.
Garphyttan Wire is a division with a strong position in the manufacturing of advanced spring wire for use in combustion engines and transmission systems for passenger cars and commercial vehicles. The most important product is valve spring quality wire, which main application is in valve springs for combustion engines. The production facilities are located in Garphyttan (Sweden), South Bend (US) and Suzhou (China). As per September 30, 2008 Garphyttan Wire had 471 employees.