Delphi Automotive to Purchase Majority Interest in Polish Parts Makers
30 June 1997
Delphi Automotive Systems Signs Agreement to Purchase Majority Interest in Polish Components ManufacturerKROSNO, Poland, June 30 -- Delphi Automotive Systems, a unit of General Motors Corporation , and National Investment Fund Magna Polonia, managed by Chase Fund Management Polska, today announced the signing of an agreement to sell a majority interest in Fabryka Amortyzator_w S.A. (F.A. Krosno) to Delphi. F.A. Krosno is an automotive components manufacturing company located in Krosno, Poland. The business is currently participating in the Mass Privatization Program administered by the 15 National Investment Funds. Following the acquisition, Delphi's planned investment will exceed 30 million US dollars. F.A. Krosno is the dominant supplier for dampers (shock absorbers) in Central and Eastern Europe with a strong reputation for quality. Current OEM customers include Fiat, and Daewoo. In addition the company holds a significant position in the region's aftermarket business. The business will become part of Delphi Automotive's Delphi Chassis Systems division. According to Delphi Automotive Systems President J. T. Battenberg III, the Krosno operation will mesh well with Delphi's existing suspension business in North America and Western Europe. "F.A. Krosno has an excellent engineering organization with a highly skilled workforce," said Battenberg. "This acquisition positions Delphi to immediately support developing suspension markets in Central and Eastern Europe." Chase Fund Management Polska represents the Magna Polonia National Investment Fund, which is the lead shareholder in F.A. Krosno, in arranging the transaction. "The partnership with Delphi secures Krosno's future in an increasingly consolidated and competitive automotive components market. At the same time the sale represents an outstanding realization of shareholder value," said Witold Radwanski, Chief Executive Officer of Chase Fund Management Polska. F.A. Krosno employs approximately 2,000 workers, with facilities totaling 75,000 square meters located approximately 240 Km. South of Warsaw. In addition to dampers, the company also manufactures an extensive line of gas shock absorbers and springs, ball joint and steering system components. They are an ISO 9001 certified supplier. Delphi Automotive Systems, with headquarters in Pontiac, Mich., USA, is the world's largest and most diversified supplier of automotive components and systems. Delphi operates 191 manufacturing facilities, 46 ventures and 17 technical centers in 36 countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo. Delphi can now be found on the Internet at http://www.delphiauto.com. SOURCE Delphi Automotive Systems