Chinese auto supplier Ningbo Huaxiang has settled a dispute with Spain's Grupo Antolin Irausa SA, agreeing to acquire stakes in two plastic auto parts firms from Grupo Antolin.
Both joint venture firms have a capital structure of 50-50. Ningbo Antolin Huaxiang Auto Parts Co. Ltd. was founded in 2007 and makes pillars, door panels, and air inlet grilles. It reported 1.3 billion yuan ($197 million) in sales and 117 million yuan ($17.7 million) in net profit in 2015. Its net assets were 325 million yuan ($49.4 million) as of Dec. 31.
Yangzhou Antolin Huaxiang Auto Parts Co. Ltd. produces door trim, door modular systems, and interior trim. It reported 2015 sales of 375 million yuan ($57 million) and net profit of 29 million yuan ($13.5 million). The net assets was 124 million yuan ($18.8 million) as of Dec. 31.
Huaxiang is paying 119 million yuan ($18 million) and 46 million yuan ($6.9 million), respectively, for the buyout deals.
Antolin originally invested 3.7 million euros ($4.2 million) in the Ningbo JV and 3.2 million euros ($3.6 million) in the Yangzhou JV.
The deals will not entail personnel changes, Huaxiang said. The JVs are entirely independent operations with their own established systems of production, supply, sales and R&D, with no reliance on Antolin in terms of market and technology.
This settles the dispute between Huaxiang and Antolin, which started last year.
Huaxiang filed a request for arbitration in December with the Shanghai International Economic and Trade Arbitration Commission, arguing that Antolin violated non-compete clauses in their JV contract by investing in a number of companies in China that make competitive products, including in Wuhan, Changchun, Beijing and Changshu.
At the time, Huaxiang requested to buy out the Ningbo JV for 101.7 million yuan ($15.3 million) and receive 490 million yuan ($74.4 million) in damages.