Continental AG’s subsiduary ContiTech has entered into an agreement to sell Veyance Technologies’ North American air springs business to US-based EnPro Industries Inc. The air springs business will be managed as part of EnPro’s STEMCO division, with the transaction including approximately 500 employees in San Luis Potosi, Mexico, and about 30 commercial and R&D employees in Fairlawn, Ohio, U.S. and Canada.
“With EnPro’s STEMCO business we have found a good home for Veyance’s air springs team in North America. We secured approximately 530 jobs in Mexico, the U.S. and Canada,” said Hans-Jurgen Duensing, member of the Continental Executive Board and head of the ContiTech division. Terms of the transaction were not disclosed. The transaction is subject to regulatory approval and expected to close in July.
Following Continental’s takeover of Veyance, the proportion of its industrial business increased from 42 to 54%. Veyance is active around the world in rubber and plastics technology, with revenue of around €1.5bn in 2014, nearly 90% of which comes from industrial business. At the end of 2014, the company employed 8,500 people in 27 plants worldwide. Veyance generates roughly half of its sales in the U.S.
Continental generated sales of approximately €34.5 billion with its five divisions, Chassis & Safety, Interior, Powertrain, Tire, and ContiTech in 2014.