LEVERKUSEN AND LIPPSTADT, Germany, Sept. 4, 2012 /CNW/ - TMD Friction and HELLA have today announced their intention to establish a new joint venture. Under the brand name HELLA Pagid the partners intend to distribute brake components for the worldwide automotive aftermarket. The jointly-owned enterprise, in which each partner will have a 50-percent share, is to be established as an independent sales company with its headquarters in Essen, Germany. Subject to the required approval by the relevant competition authorities, the joint venture will start operations on January 1st, 2013.
The goal of TMD Friction and HELLA is to build up a leading global position in the supply of brake components for all on-road vehicles. The joint venture will benefit from the respective areas of expertise of the two partners. TMD Friction is a leading global manufacturer of brake pads, which along with other components have been marketed under the premium-quality brand Pagid. In future these products will, with the exception of the British market, be distributed exclusively through the global HELLA trading organisation. This cooperation will enable the Aftermarket specialist to extend its product range with original equipment quality brake components under a strong brand and open up a further high value segment in the replacement parts aftermarket.
"For both companies the new HELLA Pagid joint venture is an outstanding opportunity to expand their global market position," confirms Carsten Albrecht, Member of the HELLA Management Board, Business Division Aftermarket & Special OE. "Pagid brake friction is produced by TMD Friction, a group known for its excellent quality and cutting-edge technology. This brand with a range of products completing the full braking system is a natural fit within the HELLA product portfolio, perfectly meeting the high standards of our customers and our own product philosophy."
Since 2006 TMD Friction and HELLA have been cooperating in the wholesale business in Scandinavia and the Baltics. In 2010 the two companies have begun to intensify their cooperation, mutually reinforcing their respective positions on the Chinese aftermarket.
"As long-standing partners we have already achieved a great deal and have excellent experiences together. This joint venture is the next logical step in our cooperation," states Josef Besting, Senior Vice President Aftermarket at TMD Friction. "With HELLA Pagid we will in future be able to deliver our customers worldwide the best possible combination of range, top quality and service."
TMD Friction and HELLA will provide more information about the cooperation once the joint venture has been approved by the competition authorities.
SOURCE: TMD Friction
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