Affinia Group Inc., an Ann Arbor, Mich.-based provider of on-and-off highway replacement products and services, has acquired Chinese drum and rotor maker HMB Investment Ltd. Affinia is controlled by Cypress Group.
Acquisition LLC, a wholly owned subsidiary of Affinia Group Holdings Inc. and an affiliate of Affinia Group Inc., has completed the acquisition of 85 percent of the shares of HBM Investment Ltd., owner of Longkou Haimeng Machining Co., Ltd. (“Haimeng”).
Located in Longkou City, Shandong, China, Haimeng is one of the world’s largest drum and rotor manufacturing companies. Acquiring a majority interest in Haimeng significantly expands Affinia’s worldwide manufacturing capacity for high-quality brake components. The acquisition also provides Affinia with an opportunity to grow its global market share through Haimeng’s OEM and aftermarket presence in Asia and Europe.
Founded in 1997, Haimeng is a privately held company serving both aftermarket and OEM customers in Asia, Europe and North America. The company operates more than 1 million square feet of modern manufacturing facilities, featuring state-of-the-art technology along with extensive research and development capabilities.
“Our commitment to Affinia’s channel partners and customers is to offer the highest quality parts, regardless of where they are made,” said Terry McCormack, President and CEO of Affinia. “Our global business strategies are resulting in competitive packages that include price, customer service and technical support. The combination of these customer benefits is fueling growth in all of our markets around the world.”
David Overbeeke, President of Affinia’s Global Brake & Chassis Group, said: “Affinia’s specifications for brake components are the highest in the aftermarket, and we are following these specifications in all of our global manufacturing centers. Haimeng has a proven track record of meeting our exacting standards while also focused on continuous improvement. Bringing Haimeng into our Affinia family takes us another step closer to completing our worldwide transformation.”
According to Zhang Haibo, President of Haimeng, the new partnership with Affinia will open up new opportunities for product innovation and growth.
“We are looking forward to the synergies that will result from our world class manufacturing facilities combined with Affinia’s global brands, depth of technical expertise and long-term customer relationships,” Mr. Zhang said. “This is a milestone event for both companies that will result in long-term benefits to all of our customers worldwide.”