Federal-Mogul Motorparts today announced it has entered into a joint venture agreement with Loxley Public Company Limited under which Federal-Mogul Motorparts will own a majority stake in and have operational control of Parts Zone (Thailand) Co., Ltd., an established automotive parts distributor in Thailand. Additional terms were not disclosed.
The joint venture will be based in Bangkok. Parts Zone currently has four distribution outlets in Thailand (two in Bangkok; one in Chiang Mai in northern Thailand; and one in Surat Thani in southern Thailand). As part of the joint venture, this number of locations is expected to expand by up to a dozen additional distribution points.
Dan Ninivaggi, CEO of Federal-Mogul Motorparts, said, "In a strategic expansion of our distribution footprint in Asia Pacific, Parts Zone will serve as a key platform for Motorparts' premium-branded products in Thailand and the greater Asian region. We see our expanded presence there as pivotal to our continued growth in the region, especially given the anticipated creation of the ASEAN Economic Community (AEC) by the end of 2015."
"Federal-Mogul Motorparts is delighted to partner with Loxley, a pre-eminent Thai public company with significant experience in the Southeast Asian market. We look forward to a long and successful partnership in growing the Parts Zone business," said Keith Power, President, Asia Pacific, Federal-Mogul Motorparts.
Said Suraphand Bhasitnirandr, Senior Executive Vice President, Loxley Public Company, "We look forward to partnering with Federal-Mogul Motorparts, a global manufacturer and distributor of premium branded automotive parts, to build on Parts Zone's established presence in Thailand. This joint venture strengthens our ability to meet the automotive parts needs of the Thai market which currently has vehicles in operation of 13.2 million."
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