JAPANESE firm Tokai Rubber Industries (TRI), Ltd has completed the purchase of all the outstanding quotas of Brazil-based Produflex Minas Indústria de Borrachas Ltda.
This is the second acquisition of automotive anti-vibration rubber manufacturers by TRI after the acquisition of Anvis Group GmbH in Germany completed in May 2013.
TRI’s anti-vibration business expands into 18 countries with this acquisition.
Produflex MG acquisition was made indirectly through TRI’s existing subsidiary in Brazil, the Tokai Rubber
do Brasil Serviços Ltda. , which has been incorporated to conduct market research and survey activities for business expansion in South America.
According to TRI, this acquisition will enhances not only its production capability for Japanese automotive customers, but also product development and marketing capabilities for European customers who have large market shares in South America.
Along with the acquisitions of Dytech – Dynamic Fluid Technologies S.p.A., an Italy based automotive hose manufacturer in February 2013, TRI’s global production network is completed in both the automotive anti-vibration systems and automotive hose business.
The firm is geared to promoting its full-scale entry to non-Japanese automotive customers, which it said is amongst its priority implementation items in its mid-term management plan, “2015 TRI Group Vision”, as well as further sales to Japanese customers.
The acquisition of Produflex MG will be reflected in the consolidated balance sheet from 2Q and in the consolidated income statement of 3Q of the fiscal year ending March 2014, said TRI.