STOCKHOLM, Sweden, Feb. 20, 2002 (PRIMEZONE) -- Autoliv Inc. (NYSE:ALV) - the worldwide leader in automotive safety systems - has decided to sell its French steel component company Autoliv Composants S.A.S. to EM Technologies S.A., a company specializing in the manufacture of steel components. Autoliv Composants has EUR 42 million (approx. $38 million) in sales - most of it to Autoliv - and 370 employees.
Including this divestiture, non-core units with a total of 1,700 employees have been closed or sold over the past three years. Two properties have also been sold. Sales and closures have reduced operating costs and released over $60 million in cash. The sale of Autoliv Composants will not have a material effect on Autoliv's earnings.
EM Technologies with four plants in France and one in Hungary has in- depth expertise in metal sheet stamping and tooling. The possibilities should, therefore, be good for mutually beneficial cooperation between the two companies. EM Technologies has EUR 85 million in sales and 600 employees. The largest customers are Honeywell, Garret, Valeo and Faurecia.
"This business is not strategic to Autoliv's long-term business plan," said Lars Westerberg, President and Chief Executive Officer of Autoliv, Inc. "By outsourcing these components we should be able to reduce our cost for manufactured steel parts and at the same time improve product development in the component area."
The change in ownership is not expected to have any effect on current production and employment levels at Autoliv Composants, and Autoliv will continue to be the company's main customer.
Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has close to 80 facilities with some 32,000 employees in more than 30 vehicle-producing countries. In addition, the company has nine technical centers around the world, including 20 test tracks, more than any other automotive safety supplier. Sales in 2001 amounted to US $4 billion. The Company's shares are listed on the New York Stock Exchange (NYSE:ALV) and its Swedish Depository Receipts on the OM Stockholm Stock Exchange (SSE:ALIV).
This information was brought to you by Waymaker http://www.waymaker.net