Chinese aluminum wheel maker CITIC Dicastal Wheel Manufacturing Co. has signed an agreement to acquire German casting product supplier KSM Castings Group.
Cognetas LLP, a European private equity firm that owns KSM, announced the deal to sell it. Cognetas said it expects to close the deal in the second half of this year.
More details were unavailable; the deal has yet to be approved by the Chinese government. The acquisition will help CITIC Dicastal to broaden its engineering capabilities and expand into the chassis, powertrain and auto body parts businesses, said the company's president, Zuo Xu. The deal also will allow CITIC Dicastal to expand in Asia and Europe.
KSM, of Hildesheim, Germany, has four plants in Germany, one in the Czech Republic and one in north China. It mainly supplies aluminum and magnesium parts to automakers such as Volkswagen AG and Daimler AG, plus suppliers such as Benteler International AG, Robert Bosch GmbH, ZF Friedrichshafen AG and TRW Inc.
CITIC Dicastal, of Qinhuangdao in north China's Hebei province, supplies cast aluminum alloy wheels for automakers in and outside China. It is a wholly owned subsidiary of CITIC Group, a state-owned conglomerate controlled by the central Chinese government.