The Jinzhou, Liaoning-based automobile parts manufacturer, Wonder Auto Technology, has acquired Friend Birch Limited (Hong Kong) to increase its capacity for gas spring rods and shafts.
Wonder Auto Technology's wholly owned subsidiary, Jinzhou Wanyou Mechanical Parts, spent USD12 million in acquiring 100% equity of Friend Birch including Friend Birch's rods and shafts technology development center, technologies and patents, and two wholly-owned subsidiaries that produce automotive mechanical springs, gas springs, and gas spring rods and shafts.
Friend Birch is engaged in designing, manufacturing and marketing automotive springs, gas springs, gas spring shafts and other thin mechanical shaft products and it has built a substantial customer base in Chinese and European OEM and after markets. According to Wonder Auto the he acquisition of Friend Birch's research center will enhance the groups technology and improve the quality and increase the variety of its rod and shaft products, which will contribute to the achievement of the company's strategy to increase its market share globally.
According to Qingjie Zhao, the chairman and CEO of Wonder Auto Technology, this acquisition will bring the group about five million units in extra capacity, which will greatly ease the pressure of its limited capacity at the moment for rods and shafts. He added that it is forecast that the acquisition will provide the group with an extra net income of USD2 million in the next 12 months.