In China, Delphi has 18 corporate entities and more than 20 production sites.
Not surprisingly, the global brake and suspension components business of Delphi, the giant of the auto parts industry, will be sold to Jingxi Heavy Industries in China at a price of USD 100 million in cash.
On the evening of March 31st, local time, Delphi issued a statement announcing that it had signed a subscription agreement with Beijing West Heavy Industries on the same day. The acquired business has about 3,000 employees, which are located in Poland, China, Mexico, France and the United States. Some of the businesses are located in Delphi (Shanghai) Power Propulsion and Supply Co., Ltd. and employ approximately 500 people.
Beijing set up BWI for acquisition
It is noteworthy that this acquisition company Jingxi Heavy Industry is a company that was established soon. The establishment of this company seems to be tailor-made for Delphi, and it is the establishment of high-end auto parts industry in Doudian Town, Fangshan District, Beijing. Base construction layout is an important step.
According to a message from the Beijing Fangshan District People's Government Office official website on March 30, “Beijing Jingxi Heavy Industry Co., Ltd.†was officially incorporated. The registered capital of Beijing West Heavy Industries is 800 million yuan, which is basically in line with the 100 million U.S. dollar price of Delphi.
The information released by Fangshan District Government’s official website shows that BWI plans to introduce the core technology of the US Delphi suspension and braking system and will establish a high-end auto parts industrial base in Doudian Town. This project is a key project with the largest amount of investment and the highest technological content in the history of industrial development in Fangshan District.
Jingxi Heavy Industry was jointly funded by Shougang Corporation, Beijing Fangshan State-owned Assets Management Co., Ltd. and Baoan Investment Development Co., Ltd., of which Shougang Corporation invested 408 million yuan, accounting for 51% of the shares, and Beijing Fangshan State-owned Assets Management Co., Ltd. contributed funds. 200 million yuan, accounting for 25% of shares, Baoan Investment Development Co., Ltd. invested 192 million yuan, accounting for 24% of the total share capital.
It is understood that compared with SAIC and FAW have their own main parts and components system, Beijing-based Beijing lacks strong auto parts and components, and urgently needs a company like Delphi to help Beijing auto parts industry to achieve rapid Upgrade and scale. Prior to that, BAIC also set up a new company. Beijing Municipal Government organized some private enterprises of BAIC and Beijing to contact Delphi. Delphi confirmed that in addition to the successful sale of catalysts and door modules, non-core businesses including brakes, suspensions, chassis, and steering systems are currently negotiating with buyers. The industry does not rule out that other Chinese companies are still talking with Delphi about the purchase of chassis and steering systems.
Or complete the transaction in the fourth quarter
Delphi has yet to disclose the specific purchase price, but according to a report from the local Detroit newspaper on April 1, BWI will pay Delphi 100 million U.S. dollars in cash. According to reports, this acquisition must be approved by the United States New York Southern Bankruptcy Court and meet other transaction conditions before it can take effect. At present, Delphi has filed an application with the court, and the bankruptcy court will hold hearings on April 23 and May 21 respectively to consider Jingxi Heavy Industry’s acquisition.
Delphi Corporation unilaterally hopes that this acquisition plan can be completed in the fourth quarter of this year. Pursuant to the acquisition agreement, BWI will acquire Delphi's machinery and equipment, intellectual property and real estate. The customer contracts and supplier contracts signed and planned will also be transferred to BWI. Delphi China related sources told reporters that the current power supply and discharge company in Shanghai Waigaoqiao has brake and suspension operations. It had previously operated independently and could be quickly stripped if sold.
Delphi was originally a parts and components company of General Motors. In 1999, it was separated from General Motors and became an independent automotive parts company. Since then, it has been at a loss.
According to Delphi's annual report last year, Delphi has agreed to sell at least seven factories worth a total of 84 million U.S. dollars. This time, the remaining non-core business will be sold to Jingxi Heavy Industry and its divestiture plan will be completed. Earlier in October 2005, Delphi had entered the bankruptcy proceedings of Chapter 11 of the U.S. Constitution.
Currently, Delphi is operating independently under the supervision of the Southern Bankruptcy Court in New York.
Delphi has 150 manufacturing facilities in 34 countries and more than 140,000 employees worldwide. In China, Delphi has 18 corporate entities and more than 20 production sites.
Delphi's annual report shows that in 2008 the company had sales of 18.1 billion U.S. dollars and a net loss of 3.30 billion U.S. dollars. The customers included almost all major auto companies in the world. In 2008, the business from General Motors accounted for 31% of Delphi's operating revenue, and Ford and Volkswagen's business accounted for 6% and 5% respectively.
Graphite Part,Other Graphite Parts,High Purity Graphite Part,High Strength Graphite Part
Henan Carbon Road New Material Technology Co., Ltd , https://www.kyedmgraphite.com