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China's biggest overseas auto parts merger sealed

(chinadaily.com.cn)
Updated: 2009-11-04 15:55

Beijing Jingxi Heavy Industry Company (BJHI) signed a contract with the American company, the Delphi Corporation, to purchase Delphi's vibration isolation and braking departments for US$90 million Monday，the Economic Information Daily today.

The deal, reportedly the biggest overseas auto parts merging move for China so far, includes equipment, intellectual property, clients and product supply contracts. Among the clients who will continue receiving auto parts from Delphi's former departments are carmakers BMW, Ferrari and GM.

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The president of BJHI, Fang Jianyi said: "The new company will maintain Delphi's original management team, and 3,000 employees globally."

"The vibration isolation and braking headquarter will remain in Dayton, Ohio, and the compensation package (salary) for all employees won't change for the next 12 months, " added Fang.