SµO PAULO, BRAZIL - A British engineering company has expanded production of auto fuel pipelines in South America by acquiring a majority interest in Brazilian nylon tube manufacturer Tubotecnica Termopl sticos Ltda. for $3.2 million. Siebe plc of Windsor, England, purchased 80 percent of the SÃŒo Paulo firm and renamed the company Siebe Fluid Systems Ltda. Siebe said in a statement that it has an option to buy Tubotecnica's remaining stock for $1 million in two years.
Tubotecnica, which employs 100 and manufactures single-layer and multilayer nylon pipe and related, preformed assemblies for the auto industry, reported sales of $6 million for the year ended Aug. 31, according to Siebe.
Major Tubotecnica customers include General Motors, Ford, Volkswagen, Fiat and Mercedes-Benz.
The acquisition enables Siebe to fulfill orders for brake, fuel and clutch lines for Ford's Fiesta model, which goes into production in Brazil this year.
``Being global is the name of the game. This marks our third successive overseas automotive [supplier] acquisition in nine months and our first in South America,'' said Brian McMahon, president and chief operating officer of Siebe Diversified Products Division.
In 1995, Siebe acquired 60 percent of the U.S. firm Fabex Inc. for $27.5 million, and another U.S. company, Form Rite Automotive Group, for $83 million.
Siebe operates several companies in Brazil, including Robert-shaw Brazil SA, which makes a range of controls for the appliance industry in South America.