The transaction is expected to close on June 1, when Inergy will take full charge of the operations. Although the new owner of the business didn't go into specifics about the future of the existing facility, it did say that it would build a new plant in southeast Michigan, one that would be ready in three years and accommodate “many of the current employees.”
“We are delighted to announce the sale of our blow-molded fuel tank business to Inergy,” said Mark Blair, president and CEO, ACH. “This is another important step in our strategic plan for Automotive Components Holdings, and it is a great opportunity for the employees at Milan.”
ACH was born in 2005, being comprised of 17 automotive components factories and 6 research and testing operated until then by Visteon. Of that, ACH currently owns only five plants, including the Milan Plant. Another plant, the one in Indianapolis, will be closed sometime in the following 12 months.
The buyer of the fuel tank business on the other hand, Inergy, operates three plants in North America and has a workforce of about 4,000 people. It's main area of business is the manufacturing of fuel tanks and systems.
Last year, Inergy sold 11.9 million plastic fuel systems, generating sales of EUR1.2 billion. According to the company, one in every six light vehicles produced in the world is equipped by Inergy fuel tanks and systems.
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