Korea Hyundai Mobis buys Mando's body frame plants
SEOUL, July 27 Reuters reported that South Korea's Hyundai Mobis Co said on Saturday it had agreed to acquire two body frame plants run by rival Mando Corp.
The auto parts division of the country's largest automaker, Hyundai Motor Co, would take over Mando's Pyongtaek plant with an annual capacity of 200,000 chassis modules and Asan plant with a capacity of 300,000 units as of August 1.
"The purchase of the two Mando plants will raise our capacity of chassis modules to two million units a year," said Hyundai Mobis in a statement.
The Pyongtaek plant had provided chassis modules for Optima sedans of Kia Motors , a sister firm of Hyundai Motor, while the Asan plant had produced the body frames for EF Sonata and Grandeur XG sedans of Hyundai Motor.
Sales from the two plants were estimated at about 300 billion won ($252.1 million) a year, said the statement, which did not give the price of the plants.
Analysts said an acquisition would be a less expensive way for Mobis to boost its output of chassis modules, or automobile body frames that include steering and suspension parts.
Formerly called Hyundai Precision Industries, Mobis formed tie-ups with global parts makers last year, including a technology alliance with Robert Bosch GmbH and an agreement with Textron Automotive Trim to make driver seat modules.