Supplier buys U.S. driveshaft company

Neapco Drivelines LLC, a unit of a Chinese supplier, has purchased the driveshaft manufacturing operations of an American company, Automotive Components Holdings LLC.

The purchase moves Neapco into Tier 1 supplier status. Terms of the deal were not disclosed.

Neapco has been a Tier 2 and Tier 3 supplier for a number of years, supplying components such as steering shafts for heavy-duty trucks, CEO Bob Hawkey told Automotive News.

Driveshaft production will be transferred from Automotive Components Holdings' plant in Monroe, Michigan, to a plant built by Neapco at another location in suburban Detroit. The factory is expected to generate $300 to $400 million in annual revenue once fully operational, Hawkey said. Ford Motor Co., Automotive Components Holdings' parent, will be a customer.

Neapco is majority-owned by China's Wanxiang Group of Hangzhou. Wanxiang gained majority control of Neapco in 2006.

Ford founded Automotive Components Holdings in 2005 to hold and sell assets it bought from ailing Visteon Corp.