Collins & Aikman Corp. is adding to its European holdings with the purchase of an injection molding operation in Logrono, Spain, from Delphi Corp.
The deal, valued at 15 million euros ($15.6 million), was scheduled to be completed in early January. It gives the automotive interior supplier 24 presses and a paint line housed in a 300,000-square-foot facility.
President and Chief Executive Officer Jerry Mosingo called the purchase an important move in the company's initiative to strengthen its global presence. It also comes as C&A works to shore up its financial position and overhaul its European operations.
In a November conference call, Mosingo stated the need to fix its European operations among the company's highest priorities. Six of Collins & Aikman's European plants are tied to Italy's Fiat Auto SpA, which has been struggling for market share.
The plant, located in northeastern Spain, has booked business for interior trim with stronger European carmakers Volkswagen AG and DaimlerChrysler AG's Mercedes division, as well as with General Motors Corp.'s Opel unit. Troy-based Collins & Aikman will pick up much of that interior trim business.
Collins & Aikman spent more than $1 billion through 2001 in an acquisition binge, including the purchase of the trim unit of Textron Automotive Co. Inc., but spent the bulk of 2002 first dealing with the integration of its new holdings and working to recover financially from those purchase costs. It listed a net loss of $45.2 million on sales of $922.5 million for the third quarter of 2002.
For its part, Delphi - also based in Troy - stated it no longer viewed the Logrono plant as a necessary part of its product portfolio, said James Bertrand, president of Delphi's Safety & Interior Systems.