Delco Remy International Inc. is to acquire automotive alternator and starter-motor supplier Elmot from the Polish government.
Elmot produced more than 500,000 alternator and starter units in 1999 for both the original equipment market and the aftermarket.
Fiat and Daewoo are Elmot's major customers. The company received the Fiat Auto Qualitas 1999 award.
Elmot was established in 1947 and is based in Swidnica in southwest Poland. It has 800 employees.
Delco Remy intends to grow its European alternator and starter business significantly, and the purchase of Elmot 'will expand our presence as a low-cost manufacturer in eastern Europe,' said Thomas Snyder, Delco Remy president and CEO. 'We will supply new business at General Motors Europe and we will localize the manufacturing of products supplied to Daewoo's European operations.'
Delco Remy recently opened a new European engineering center in Budapest. The facility will undertake some testing, quality assurance and customer service functions previously carried out in the USA.
Delco Remy also manufactures heavy-duty alternators and starters in Hungary.
Last year Delco Remy announced a $22 million restructuring program that involved cutting its global work force by 860 to about 6,000.
The company plans to refocus its plants on fewer product lines to raise efficiency. It also has manufacturing facilities in Belgium, Canada, Mexico, South Korea, Tunisia, the UK and the USA.
Delco Remy, headquartered in Anderson, Indiana, USA, manufactures and distributes electrical, powertrain and drivetrain components. As well as alternators and starters, its products include engines, transmissions, fuel systems and traction control systems.
Delco Remy began business in 1994 as a partial divestiture of the Delco Remy division of General Motors.
General Motors still acounts for about 38 percent of Delco Remy's business. Last year Delco Remy had sales of $953.7 million.