SHANGHAI — Zhuzhou Times New Material Technology Co. Ltd. signed an agreement with ZF Friedrichshafen AG to acquire its Rubber & Plastics business unit. The transaction is expected to close in the first half of 2014 and is subject to regulatory approvals in China, Europe and TMT's shareholders.
Financial terms of the deal were not disclosed. TMT said the business unit's operational headquarters will remain in Damme, Germany, and all of its employees will be retained.
“TMT's future strong investment support for our Rubber & Plastics activities certainly provides us with enhanced opportunities for global business development,” said Torsten Bremer, head of the ZF's R&P business unit.
ZF's Rubber & Plastics business unit generated approximately $962.7 million in sales with about 3,300 employees in nine locations in Europe, North and South America, Asia and Australia.
ZF CEO Stefan Sommer said that TMT offers opportunities to the business unit his company could not have provided. The company is “delighted that we have found a strategic partner that follows a long-term strategy, is willing to invest in the business and provides the best solution possible for our employees and customers,” the executive said.
TMT is a leading provider of noise, vibration and harshness components and polymer composite materials for the railway, automotive, construction and wind power industry. TMT said it aims to expand into the global automotive noise, vibration and harshness market by making ZF's Rubber & Plastics business unit one of its core business units and its primary automotive platform globally.
“The management team and employees of the Rubber & Plastics business unit have done an outstanding job in the past and we are very much looking forward to further developing the Rubber & Plastics business together with them,” said TMT CEO Jun Yang.