Mexican industrial group Grupo Kuo SAB de CV said its automotive parts joint venture, CIE-Desc, has agreed to acquire two plants that mold plastic fuel-injection parts for the auto industry from Mexico's Grupo Duroplast for $31.2 million.
The plants are in Ramos Arizpe, Mexico, and according to Kuo had sales of $55 million in 2006. Mexico City-based Kuo said it expects to finalize the deal by late September.
CIE-Desc is a joint venture between Kuo and CIE Automotive SA of Bilbao, Spain.
Formerly known as Desc, Kuo changed its name earlier this year. It also has interests in chemicals and food processing.
``With this transaction, the CIE-Desc joint venture strengthens its position in attractive niche markets,'' Kuo said in a news release. ``It also enables CIE-Desc to direct its efforts toward new areas of opportunity, taking advantage of the trend in the auto industry of supplier relocation, while expanding its presence as a provider of components and integral automotive solutions.''
CIE-Desc's other manufacturing activities in the automotive industry include transmissions, door and roof stamping and pistons for the aftermarket.
Naucalpan, Mexico-based Kuo has annual sales of $1.8 billion and employs 10,500. The company reported second-quarter sales of $482.9 million, up 4.7 percent compared with the same period in 2006.
Of that figure, 23 percent came from its automotive operations, according to the company.