Shareholders to vote on Intier purchase
AURORA, ONTARIO - Magna International Inc. is continuing its move to buy its publicly held subsidiaries, with shareholders set to vote on whether to fold all of Intier Automotive Inc. into Magna.
Aurora-based Magna already had a controlling interest in interior specialist Intier, but now proposes to trade each share of Intier for 0.41 of a share in Magna. Shareholders are to vote on the deal March 30.
Intier shares on the New York Stock Exchange closed at US$28.84 in trading Feb. 9, the day of the Magna announcement. Magna shares closed at US$75.56.
Intier directors did not issue any recommendations to stockholders, but noted it is unlikely that any third party will offer to buy the public shares.
Magna has a similar deal in the works for its exterior plastics group, Decoma International Inc., with a shareholder vote Feb. 24. Shareholders approved Feb. 4 a buyout of its Tesma International Inc. group - a maker of engine, transmission and fuel system components.
The full Magna holdings are on track to sell auto parts worth US$22 billion to US$23.5 billion in 2005.
Helvoet Holding buys Royal Philips unit
HELLEVOETSLUIS, THE NETHERLANDS - Dutch molder Helvoet Holding has purchased Amsterdam-based Royal Philips Electronics NV's automotive unit, creating a single global molder with 950 employees.
The two companies announced the deal Jan. 31, with Helvoet of Hellevoetsluis changing its name to Helvoet Rubber & Plastic Technologies.
Helvoet already has production sites in the Netherlands, Singapore and South Korea. It injection molds plastics and molds rubber precision components such as vibration insulation on consumer electronics, spray-can nozzles and veterinary syringes.
Philips High Tech Plastics Automotive has 35 percent of the global market for production of injection molded centrifugal fans in fuel pumps. It also adds its facilities in Belgium, India, Mexico and the United States to Helvoet's mix. The united firm also will open a site in China this year, Peter van Vlijmen, Helvoet chief executive officer, said in a news release.
``Together we can handle all the orders in the markets that are important to us,'' he said. ``This will enable us to not only develop new applications for our technologies, but also allow us to offer our customers a much broader range of ... products.''
Southern Pipe Inc. adds extrusion line
NEW LONDON, N.C. - Southern Pipe Inc. has added one extrusion line as it beefs up capacity to serve the PVC electrical conduit market.
``We expect a strengthening market for conduit and cellular core for utility,'' said Bob Mitchell, president and chief executive officer.
The New London company installed a Cincinnati Milacron extruder that processes about 2,200 pounds per hour, Mitchell said by telephone Feb. 10. The addition boosts the company's output to roughly 7 million pounds per month on seven extrusion lines. Southern Pipe will add five employees, giving it about 85 total.
Customers include electrical distributors, utilities and hardware wholesalers on the East Coast, according to the Stanly County Economic Development Commission in Albemarle, N.C.
Alside building window plant in Arizona
CUYAHOGA FALLS, OHIO - Profile extruder Alside Inc. of Cuyahoga Falls will open a 200,000-square-foot window fabrication plant in Yuma, Ariz., by August.
Construction of the plant just started. The site will begin with 125 employees, said Gayle Rusing, president and chief executive officer of the Greater Yuma Economic Development Corp. Alside, under parent Associated Materials Inc., will work toward 550 employees during a five-year period, Rusing said in a Feb. 10 telephone interview.
Alside officials did not return a call seeking comment.
According to Associated Materials' 2003 annual report, Alside operates fabrication plants in Cuyahoga Falls, Ohio; Bothell, Wash.; Cedar Rapids, Iowa; Kinston, N.C.; Richmond, Va.; and London, Ontario. The fabrication sites in Ohio, North Carolina and Iowa are fed from Alside's extrusion plant in West Salem, Ohio. The firm has a long-term contract with a third-party supplier for the extrusions that feed the Washington site.
Rusing said Alside received several incentives to locate its plant in Yuma, including enterprise zone credits with the state, workforce credits from the city and benefits from Yuma Private Industry Council that include recruiting and job-training assistance.