Bohai Automotive buys Trimet Aluminium’s automobile parts unit via a German subsidiary

According to a press update from the company on Wednesday, Germany's Trimet Aluminium has completed the sale of its automobile parts unit to China's Bohai Automotive Systems.

Trimet decided to spin off its automobile aluminium products business in 2017. In December 2017, TRIMET and Bohai Automotive signed an agreement on Bohai Automotive’s purchase of the majority stake in TRIMET Automotive. Bohai Automotive Systems announced in March that it was negotiating with Trimet to buy a 75% stake in its auto parts unit for 61.5 million euros. The transaction completed all the closing conditions. The transaction took place via a German subsidiary and Bohai Automotive now holds 75 per cent shares in TRIMET Automotive Holding GmbH.

Privately owned Trimet Automotive, along with its subsidiary plants in Harzgerode and Sömmerda, manufactures high-quality die-casting components for automobiles. The company produces about 13 million auto parts every year and has sales revenue of about 200 million euros ($232 million). Though Trimet did not divulge any financial details about the transaction, the company said that they lacked the capability to undertake the global operations the sector demanded.

"The merger provides additional opportunities for Trimet Automotive as a system supplier to the increasingly global operations of automobile manufacturers, thus sustainably strengthening its production sites in Harzgerode and Soemmerda," Trimet said.

Bohai Automotive is an internationally active automotive supplier based in China and listed on the Shanghai Stock Exchange.