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Sachs Acquires Majority Stake in Indian Shock Absorber Manufacturer

17 July 1997

Sachs Acquires Majority Stake in Indian Shock Absorber Manufacturer

    DUSSELDORF, Germany, July 17 -- Fichtel & Sachs AG, which
belongs to the Mannesmann Group, has acquired a majority stake in the Indian
shock absorber manufacturer SIRMOUR SUDBURG in Parwanoo, in the Province of
Himachal Pradesh.  SIRMOUR SUDBURG currently produces about 1 million shock
absorbers for two wheelers p.a., mainly for Indian scooter manufacturers.
    Sachs initially intends to expand the existing product area of shock
absorbers for two wheelers by contributing its own know-how and thus to
strengthen Sirmour's position on the domestic market.  It is then planned to
expand production to include the shock absorber program for passenger cars and
commercial vehicles and thereby to supply both the Indian automotive industry
and the Indian aftermarket.  Sachs, one of the world's leading manufacturers
for shock absorber technology, expects vehicle production in India to rise to
approx. 1 million by the year 2000.
    During the course of this expansion it is also planned to set up new
manufacturing facilities in addition to modernizing existing plants.
    Sachs, which is part of the Mannesmann Automotive sector and specializes
in chassis and powertrains, also intends to expand its activities on the
Indian market to include other product areas.  It is thus further expanding
its position as a global supplier to the automotive industry.  In pursuing
this strategy, Sachs has recently acquired the Argentinian shock absorber
manufacturer DELFABRO, thus stepping up its operations in another growth
market.  In 1996, Sachs with its activities in chassis and powertrains as well
as rubber metal parts to dampen vibration and gas springs achieved sales
totaling DM 3.5 billion.

SOURCE  Mannesmann Group