SABIC buys stake in German automotive joint venture

In a bid to expand its portfolio of lightweight materials, supplier SABIC Innovative Plastics has entered into an agreement to purchase an equity stake in Inpro, a joint venture dedicated to collaborative innovation in automotive production.

SABIC will join Daimler, Siemens, ThyssenKrupp and Volkswagen as equity owners in the group.

The terms of the deal have not been disclosed.

Headquartered in Germany, Inpro develops technologies for lightweight production of automobiles. According to SABIC, the group’s R&D focus includes the development of new production technologies for future electric and hybrid vehicles.

“Inpro is an excellent fit for us and serves as yet another example of how we engage in the kind of collaboration that is necessary to fuel and accelerate automotive innovation,” said Joachim von Heimburg, SABIC’s general manager of global innovation and corporate research programs. “In addition, we see opportunity to draw from our experience with Inpro to help our corporate innovation and R&D organization realize technology breakthroughs with customers in other industries and markets.”

The transaction is expected to close before the end of 2011 and is subject to customary closing conditions and regulatory approvals.