DENSO Acquires Rotating Machines Division
16 March 1999
DENSO Acquires Rotating Machines Division of European Automotive Components Manufacturer
SOUTHFIELD, Mich., March 16 -- DENSO Corporation,
headquartered in Kariya, Aichi, Japan, today announced that it will acquire
80 percent of Magneti Marelli's Rotating Machines Division by mutual agreement
with the European automotive components manufacturer.
Both parties concluded the stock sales contract of the corresponding
business sections on March 11.
DENSO, the world's fourth largest automotive components supplier,
manufactures electrical and electronic equipment, air conditioning equipment,
driving control and safety products, body equipment and information and
communication products.
DENSO's global sales totaled nearly US $13 billion for fiscal year
1997-98.
The Rotating Machines Division of Magneti Marelli S.p.A., headquartered in
Milan, Italy, manufactures engine electrical equipment such as starters and
alternators and small motors for windshield wipers at its subsidiaries in
Italy, United Kingdom, Brazil and Poland, selling them to Fiat, BMW/Rover and
others.
Magneti Marelli's 1998 consolidated global sales were US $4.2 billion.
Its president is Domenico Bordone.
"DENSO has been considering the increasing need to enhance its
electromechanical motor business on a global basis," said Hiromu Okabe,
president and chief executive officer of DENSO Corporation. "At the same
time, by trading its Rotating Machines Division, Magneti Marelli hopes to
further reinforce its overall group ability by putting emphasis on its
powertrain and comfort system businesses."
Global sales for Magneti Marelli's Rotating Machines Division totaled EURO
330 million (US $390 million) in 1998. The division employs 2,800.
Production subsidiaries to be acquired by DENSO are:
-- Magneti Marelli Manufacturing S.p.A. San Salvo, Italy;
-- Magneti Marelli UK Ltd., Birmingham, United Kingdom;
-- Magneti Marelli do Brasil Ind. Com. Ltda., Hortolandia, Brazil, and
-- Magneti Marelli Poland S.A., Sosnowiec, Poland.
Dominating slightly less than 20 percent of the European engine electrical
equipment market, Magneti Marelli ranks third in Europe. Robert Bosch GmbH
ranks first in Europe in this market and Valeo second.
Okabe added, "DENSO and Magneti Marelli have been working together in
Europe in the areas of car air conditioners and heat exchangers for some
time."
Currently, DENSO and Magneti Marelli operate two joint ventures:
-- Magneti Marelli Climatizzazione S.p.A. in Torino, Italy, which
manufactures and sells air conditioners, heaters and radiators, and
-- Magneti Marelli DENSO S.A. in Cordoba, Argentina, which manufactures
and sells heaters and air conditioners.
DENSO Corporation currently employs 57,000 in 25 countries, while Magneti
Marelli employs 29,500 in 15 countries including Italy. For more information,
check the worldwide website at http://www.denso.co.jp.
In North America, DENSO employs more than 11,000 at 16 locations. For
more information, visit the North American website at http://www.denso-int.com.
MAGNETI MARELLI S.p.A. FACTS
Established: 1919
Location: Milan, Italy
Capital: EURO 315 million (US $370 million)
Ownership: Fiat Group (65%), Others (35%)
Sales (consolidated 1998): US $4.2 billion
Total Employees: 29,500
Product Lines: Powertrain - Electronic fuel injection systems, fuel
delivery systems, exhaust systems.
Comfort - Car air-conditioning and engine cooling systems.
Active Safety - Lighting systems, rear-view mirrors.
Car Interior - Instrument clusters, navigation systems.
Rotating Machine - Alternators, starters, small motors.
Others - Shock absorbers and lubricants.
MAGNETI MARELLI S.p.A. ROTATING MACHINES DIVISION
Production Subsidiaries:
Magneti Marelli Manufacturing S.p.A., Milan, Italy
Magneti Marelli UK Ltd., Birmingham, United Kingdom
Magneti Marelli do Brasil Ind. Com. Ltda, Hortolandia, Brazil
Magneti Marelli Poland S.A., Sosnowiec, Poland
Production Volume:
Starters (2,800,000 in '98)
Alternators (3,800,000 in '98)
Windshield Wipers & Small Motors (4,000,000 in '98)
Sales (1998): EURO 330 million (US $390 million)
Employees: 2,800
Location of Industrial & R&D Facilities: Italy, France, Germany, Spain,
United Kingdom, Portugal, Poland, Turkey, USA, Mexico, Brazil,
Argentina, China, India, South Africa.
Customers: Renault, Citroen, Peugeot, Fiat Group, Ford, Volkswagen,
Audi, SEAT, BMW/Rover, DaimlerChrysler, GM/Opel, Volvo, Saab, Nissan,
Toyota, Daewoo.
DENSO EUROPEAN & SOUTH AMERICAN PRODUCTION SUBSIDIARIES
Country Company Name Product Line Ownership Employees
UK DENSO MANUFACTURING Evaporators, 75% 1,212
UK LTD. condensers (heat
exchangers for
car air conditioners
UK DENSO MARSTON LTD. Radiators 75% 1,054
Spain DENSO BARCELONA S.A. Igniters, automotive 100% 237
electronic products
Hungary DENSO MANUFACTURING Diesel injection 100% 144
HUNGARY LTD. pumps
(Operation start: June 1999)
Germany TD Deutsche Compressors 35%
Klimakompressor GmbH (Operation start: April 2000)
Italy Magneti Marelli Car air conditioners, 25% 1,787
Climatizzazione S.p.A. radiators
Brazil DENSO DO BRASIL LTDA. Car air conditioners, 70% 1,383
compressors
Argentina Magneti Marelli Heaters & car air 46% 70
DENSO S.A. conditioners