Pendleton-based auto parts manufacturer Remy International Inc. plans to buy out a partner’s share in a Chinese joint venture, paving the way for a greater share of the Asian market.
The joint venture, Remy Hubei Electric Co. Ltd, was formed by Delphi Automotive Systems China Ltd in 1994. Remy took over the 51 percent stake in the joint venture after buying Delphi’s light-duty alternator business in 2004.
Remy, which produces alternators, starter motors and electric traction motors, will now buy the other 49-percent stake in the venture from Hubei Super Electric Auto Motor Co. Ltd. Remy announced late Monday that it expects to close on the deal within 30 days.
The company did not disclose the price. Jay Pittas, Remy's president and CEO, called the acquisition an important milestone in its global strategic plan.
"Over the next several years, more than half the growth in the global light vehicle market and an even higher percentage of growth in global commercial vehicle market will come from China," Pittas said in a prepared release. "The REH acquisition, in combination with our investment in Wuhan, more than doubles our existing alternator capacity and significantly expands our starter business.
"The payoff from these investments is already being realized as we win new business that will significantly expand our starter and alternator share of the China vehicle market."