US-based auto-parts maker decides to acquire a majority stake in Parts Zone to strengthen its presence in Southeast Asia. Fortune Parts Industry, the listed plastic auto-parts manufacturer, sets up five joint venture companies to invest in renewable energy business.
Federal-Mogul ups stake in Thailand’s Parts Zone
Federal-Mogul Motorparts, manufacturer and distributor of auto parts under Federal Mogul Holdings Corporation, has acquired additional stake in distributor Parts Zone (Thailand) Co Ltd from Loxley PCL for an undisclosed amount.
Federal-Mogul will hold 51 per cent, Loxley will hold 46 per cent while Wachira Yongyai, managing director of Parts Zone (Thailand), will hold the balance.
“In a strategic expansion of our distribution footprint in the Asia-Pacific, Parts Zone will serve as a key platform for Motorparts’ premium-branded products in Thailand and the greater Asian region. We see our expanded presence there as pivotal to our continued growth in the region, especially given the anticipated creation of the ASEAN Economic Community by the end of 2015,” Dan Ninivaggi, CEO of Federal-Mogul Motorparts, said.
Wachira Yongyai, Managing Director of Parts Zone (Thailand), said, the investment of Federal-Mogul Motorparts into Parts Zone will enable the company to have sound financial status and to strengthen its product portfolio to lead the business in Thailand.
Parts Zone has four distribution outlets in Bangkok, Chiang Mai, and Surat Thani.
Thai auto-part maker FPI forms JV to tap into energy biz
The Board of Directors of Fortune Parts Industry PCL (FPI) has approved the setting up of five joint venture companies to tap into biomass power plants with a combined investment of 8.96 million baht.
The funds will come from its internal working capital, according to the company’s report to the Stock Exchange of Thailand.
“This is our first diversification into renewable energy. However, our core business remains the manufacturing of plastic auto-parts,” FPI’s managing director Sompol Tanadumrongsak said.
He said, the main objective for establishing these JV firms is to join the auction to acquire power purchase agreements (PPA) in the first quarter of 2016. The auction’s result will be announced in the second quarter.
It currently holds 51 per cent stake in each JV and it will increase to 75 per cent in January next year, the report cited.