CHONGQING -- Chongqing Light Industry & Textile Holding (Group) Co. says it has acquired SaarGummi Group, an insolvent automotive sealing strip supplier in Germany.
Chongqing Light Industry is owned by the municipal government of Chonqing, a city in southwest China. The company did not give more details about its acquisition.
But the Chongqing Morning News reported that Chongqing Light Industry paid 64 million euros (574 million yuan) and assumed SaarGummi's debt of 741 million yuan.
SaarGummi has 12 plants in Europe, North America, South America and Asia. In 2009, Chongqing Light Industry set up a joint venture with SaarGummi to make rubber sealing products.
SaarGummi's main customers include Volkswagen AG, BMW AG, Daimler AG and Ford Motor Co.
SaarGummi filed for bankruptcy protection in Germany last November. In 2010, its sales revenue was 360 million euros.
Chongqing Light Industry makes a wide range of products including food and drinks, textiles, construction materials and automotive components. Its revenue last year totaled 15.3 billion yuan.