DETROIT -- ThyssenKrupp Budd Co. said Wednesday that it has sold its plastics materials manufacturing and molding operations to Continental Structural Plastics Inc., of Bingham Farms, Mich.
The sale is part of a restructuring plan that included an announcement in May of plans to close the company's Detroit metal stamping plant and an announced sale in June of ThyssenKrupp Stahl Co., an aluminum castings division.
ThyssenKrupp Budd said the sale of its plastics division includes three plants in Ohio, in Carey, North Baltimore and Van Wert, as well as a plant in Tijuana, Mexico. Automotive News first reported the company's plans to sell the unit on June 26.
The sale price was not disclosed. About 1,120 employees are affected.
"Basically, (the plastic division) is not core to our automotive operations as we have them now," said Thomas McDonald, executive vice president of public affairs for ThyssenKrupp Budd.
McDonald declined to say whether there are plans to sell any additional plants or divisions.
Continental Structural Plastics, founded in 1982, makes structural plastic components, bumper beam reinforcements, rocker covers, oil pans, stamped steel seat frames and underbody shields.
"Budd's expertise as both a formulator and premier molder of SMC composites will increase Continental Structural's manufacturing capability and broaden its product portfolio in both thermoplastic and thermoset industrial composites. Budd's strong technology will help CSP expand into more markets and applications," Bruce Landino, CEO of Continental Structural, said in a statement.
The company is not affiliated with German parts supplier Continental AG.
Continental Structural operates plants in Petoskey, Mich.; Sarepta, La.; and Conneaut, Ohio, in addition to its headquarters, sales and marketing office in Bingham Farms.
ThyssenKrupp Budd continues to operate 24 plants with more than 9,000 employees in North America. The company makes sheet metal stampings and assemblies, composite auto body panels and pickup boxes, chassis modules and subframes, bumpers and bumper reinforcements.
ThyssenKrupp Budd is part of ThyssenKrupp Automotive Group of Duesseldorf, Germany. The group's annual revenues exceed $10 billion.
The major investment sponsors for the acquisition include Richard L. Scott Investments LLC and Continental Structural's management, a statement said.
"We acquired CSP in early 2005 with the belief that there was an opportunity to build a great company focused on being a valued structural-plastics supplier to the auto, HVAC and other industries," Richard L. Scott said in a statement.
"Our goal over the next 20 years is to continue to complete strategic acquisitions where our customers and suppliers believe our management expertise will be beneficial. The Budd Plastics acquisition was attractive to us because of its outstanding management team, employee base and relationships with the automotive industry."
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