Delphi signs agreement to sell catalyst business

Delphi Corp. said today that it will sell its catalyst business to Belgium metals company Umicore Group for $55.6 million.

The agreement remains subject to U.S. Bankruptcy Court approval, and other potential buyers can still bid on the business. Delphi filed a motion in bankruptcy court asking for an Aug. 16 hearing to approve the sale. Catalysts are chemically treated metals used inside catalytic converters.

Delphi assets to be sold include plants in Tulsa, Okla.; Florange, France; Port Elizabeth, South Africa; and various intellectual properties. They also include licensing agreements with Varroc Ltd. for India.

Delphi, the former parts unit of General Motors, filed for bankruptcy protection in October 2005 and has been selling noncore parts of its business as part of its reorganization.

Delphi, of Troy, Mich., ranks No. 2 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment parts sales of $26.40 billion in 2006.