Valeo, the French automotive components manufacturer announced today that it is in negotiations to sell its Access Mechanisms Business to Japan-based U-Shin.
The disposal plan is being submitted to employee representatives for consultation and is subject to approval by the competition authorities.
The division, which makes locks, handles and latches at 12 plants with 4,500 employees, had sales of 620 million euros ($773.76 million) in 2011, the company said.
Valeo posted a 13 percent rise in 2011 sales to 10.9 billion euros ($14.5 billion). Valeo expects global automotive production to rise 3-4 percent this year despite a 5 percent decline in Europe, with raw material prices at current levels.
U-Shin is one of Asia’s largest producers of automotive access mechanisms. Through the acquisition of Valeo’s Access Mechanisms Business, U-Shin would become a global market leader with a diversified customer base and a front-rank presence in Asia, Europe and South America.