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Valeo Acquires Mando's Alternators and Starters Business

10 June 1999

Valeo Acquires Mando's Alternators and Starters Business

    --June 9, 1999--Valeo has signed an agreement today, June 9, 1999, with a view to acquiring the alternators and starters activity of the Korean manufacturer Mando Machinery Corporation.
    This activity, located in Kyungju, South Korea, is expected to achieve sales of 180 million euros in 1999 for an output of three million units. It employs 1,060 people. Mando Machinery Corporation is the main supplier of alternators and starters to Hyundai Motor and Kia. Mando is also active in the aftermarket. The acquired activity is expected to be consolidated into Group accounts before July 31, 1999.
    The acquisition price is 150 million euros. The agreement will be finalized once the closing conditions have been fulfilled.
    With this acquisition Valeo is strengthening its worldwide presence in the area of alternators and starters. The Group holds strong positions in Europe with four production plants. It is developing its alternator and starter activities in South America where it recently launched a plant in Campinas, Brazil, and in Asia with a joint venture in Shanghai. This operation ranks Valeo as one of the top world manufacturers of alternators and starters.
    It strengthens Valeo's electrical and electronics businesses that now account for 60% of total Group sales.
    Valeo is thus expanding its activities in South Korea where it is already present in Taegu with a joint venture, Valeo Pyeong Hwa, in Clutches & Transmissions and in Friction Materials.
    Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group has 114 plants, 29 R&D centers and 12 distribution centers in 20 countries worldwide.
    For more information on the Group and its businesses, please consult our Web site: http://www.valeo.com.