Toronto-based global automotive parts maker ABC Group Inc. has sold its ABC Group Fuel Systems Inc. subsidiary to China’s state-owned firm Rongshi International Holding Company Ltd.
The terms of the deal have not been disclosed.
The subsidiary, located in Gallatin, Tenn., makes blow molded, co-extruded, and injection molded fuel tanks and transfer systems.
Rongshi is owned by a Chinese state-owned investment holding company, SDIC.
“This acquisition is part of our strategy to support our customers on global programs,” Liu Xuewu, general manager of Rongshi, said in a statement. “Over the past few years automotive OEMs have been moving to global platforms and we have been working with ABC to support our customers in North America. This acquisition will allow Rongshi to fully realize its potential as a global supplier of automotive fuel systems.”
“The sale of ABC’s fuel business was part of our global strategic plan to support our evolving international operations and six other expanding business units while continuing to meet our customers’ needs,” said ABC Group chairman and CEO Helga Schmidt. "As part of that plan, we recently opened up our fourth plant in Mexico, and are building a new facility in Tennessee.”
ABC Group is a Tier 1 automotive parts supplier which began in 1974 with a single manufacturing facility in Canada. It has grown to become a global manufacturing enterprise that employs approximately 5,200 people and has manufacturing facilities across Canada, the U.S., and internationally.