31 March 2009 18:58 [Source: ICIS news]
MEXICO CITY (ICIS news)--Mexican chemicals-to-retail firm Grupo Kuo sold Celaya, its automobile-parts segment, to Spain's auto-parts group Cie Berriz for $15m (€11m), the company said on Tuesday.
Before the deal, Celaya had been a 50-50 joint venture between the two firms, Kuo said.
Cie Berriz also has the option to buy out Kuo's stake in another joint venture, PEMSA Celaya, which makes auto paint.
Mexico’s auto industry, which relies heavily on exports to the US, has suffered as demand there has collapsed. During February, Mexico produced 38% fewer cars than the same month of 2008, according to the Mexican Auto Industry Association.
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