Shanghai, September 24 (Gasgoo.com) Wonder Auto Technology, Inc., a Chinese manufacturer of automotive electrical parts, announced on Wednesday that one of its subsidiaries spent US$12 million in acquiring 100 percent equity of Friend Birch (Friend Birch Limited (Hong Kong)), the company said in a press release.
The deal includes Friend Birch's rods and shafts technology development center, technologies and patents and two wholly-owned subsidiaries, which produce automotive mechanical springs, gas springs, and gas spring rods and shafts, etc.
"This acquisition will bring us about five million in extra capacity, which will greatly ease the pressure of our limited capacity at the moment for our rods and shafts, " said Mr Qingjie Zhao, Chairman and CEO of Wonder Auto Technology, Inc.
Zhao forecasted that this acquisition will provide the company with an extra net income of two million dollars in the next 12 months.
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology is a manufacturer of automotive electrical parts, suspension products and engine accessories. It was ranked second in sales revenue in the China market for automotive alternators and starters in 2008.
Gasgoo: auto parts source
