SHENZHEN Kaizhong Precision Tech (Kaizhong) has agreed to buy German automotive supplier systeme metall kunststoff gmbh (smk). smk is a leading developer and maker of turbocharger and exhaust parts, plus other complex auto parts. The transaction is subject to certain conditions, including regulatory approval in China. The deal is expected to close by end 2Q 2018, with details yet to be announced.
Formed in 1950, SMK is family owned. It has production bases and R&D centres in Filderstadt (near Stuttgart) and in Berga (south of Leipzig). Customers include Mercedes-Benz, BMW, Audi and Porsche. Around 470 employees work at the two production sites. Kaizhong Precision plans to establish a European R&D and production centre to further its business in new energy vehicle motors, cells, electronic controls and lightweight autos.
"For us Kaizhong is the ideal strategic partner to secure future growth and at the same time to ensure succession among the shareholders," said Thomas Bächner, managing director of smk. Bächner and his management team will continue to work for smk and accompany Kaizhong's growth strategy. smk will continue as an independent company within the Kaizhong Group. "With smk we are strengthening our existing presence in Europe and gaining access to further top customers in the automotive industry," said Daisy Wu, vice general manager of Kaizhong.
Kaizhong is a global manufacturer of precision parts and components for motors and electrical control units, with its headquarters in Shenzhen. In 2016 Kaizhong bought parts manufacturer Sideo Vogt, based in Reutlingen (south of Stuttgart). It was renamed Kaizhong Vogt. Kaizhong listed on the Shenzhen Stock Exchange in November 2016.