Ford Motor Company and Linamar Corporation announced the signing of definitive agreements for the sale of the Automotive Components Holdings’ Power Transfer Unit (PTU) business and its Converca I Plant in Nuevo Laredo.

      The ACH Converca I Plant is among the leading manufacturers of PTUs in the North American auto industry. As part of the deal, assets of the plant will be transferred to Linamar. The plant employs about 500 employees.

      The purchase includes the 304,000 square-foot plant, 25 acres of land, as well as the experience inherited from a skilled team of engineers. The PTU plant currently operates with approximately 500 staff in addition to 20 engineers. )

      Linamar announced a purchase proposal for the Converca I Plant in April 2007. The agreement has now been finalized and Linamar will acquire the facility along with its product engineering group. The Converca plant’s PTU capability will complement Linamar’s expertise in automotive systems and further diversify its product offering in North America.

      “We are pleased to add both the PTU manufacturing and product engineering capabilities to our portfolio, this leading-edge PTU technology reinforces our role as a full system supplier,” said Linda Hasenfratz, Linamar’s CEO. “We welcome this addition to our team and see great opportunity for this market and its growth potential in the future.”

      The PTU is a critical driveline component which provides all-wheel-drive control to vehicles. The Converca plant, located in Mexico, will adopt...

...Continued in the pages of Twin Plant News, Subscribe Today!