The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of Canada's ABC Group.
State Development Investment Corp. of Beijing, a major investor in Yapp Automotive Parts Co. Ltd., announced it purchased 100 percent of ABC Group Fuel Systems Inc. and its Gallatin, Tenn., plant for an undisclosed amount.
SDIC's purchase came through its Rongshi International Holding Co. Ltd., the overseas investment and financing platform.
Yapp is the biggest plastic fuel tank maker in China, holding 50 percent of the market share, according to SDIC's website.
Yapp and ABC formed an alliance in 2010 to help both firms grow globally without the initial need for a major production investment in new regions.
“This acquisition is part of our strategy to support our customers on global platforms,” said Liu Xuewu, general manager of Rongshi in an April 21 news release. “Over the past few years automotive OEMs have been moving to global platforms and we have been working with ABC to support our customers in North America.
“This acquisition will allow Rongshi to fully realize its potential as a global supplier of automotive fuel systems.”
Helga Schmidt, chairman, president and CEO of Toronto-based ABC, said the sale will allow the company to build its six major business units globally, with plans to invest in new production in Mexico and elsewhere in Tennessee.