Kayaba to Expand Manufacturing Operations in Europe

Kayaba Industry to acquire 100% ownership of AP Amortiguadores SA

Kayaba Industry Co., Ltd. has announced that in February 2004 it is to acquire the 75% shareholding in AP Amortiguadores SA (APA) currently held by ArvinMeritor.

APA is currently an affiliated company of Kayaba in northern Spain, with Kayaba owning a 25% share. The move will make APA a wholly owned subsidiary. APA manufactures automotive shock absorbers for the European original equipment (OE) market and aftermarket, supplying major car manufacturers such as Ford, Renault, Peugeot, Toyota, Nissan, Audi-VW Group, Mitsubishi, Daimler-Chrysler, Suzuki and General Motors.

The acquisition will make the APA plant Kayaba's key production base in Europe, enabling the company to pursue its worldwide automotive shock absorber supply strategy.

Commented Mr Hajime Sato, Managing Director of Kayaba Europe: "To meet the needs of our vehicle manufacturer and aftermarket distribution customers on a global basis, we recognise Europe, North America, Japan and Asia as our four principal regions. By increasing our ownership in APA to 100%, we will be able to considerably strengthen our production and supply position, and be better placed to meet the specific needs of our European customers." "This is a truly significant move for Kayaba and its KYB brand of automotive shock absorbers, and one that will give us a major advantage in the marketplace" he added.