The remaining 10% of the Delkor joint venture, a part of Johnson Controls’ acquisition of Delphi’s global automotive battery business in 2005, will be sold to the local management team. The closing of the transaction is expected to take place by August 15, 2010.
Post acquisition, the company will make an additional investment of $40m to increase the annual production capacity of Delkor to 10 million batteries by adding 2.7 million units in capacity.
As Delkor integrates into the Johnson Controls network and its technology, H Kwon, president of Delkor, will continue in his position to lead the local management team and to run the day-to-day operation of the company.
Alex Molinaroli, president of power solutions at Johnson Controls, said: “Delkor is a strong and well-respected brand in Asia. The acquisition further represents our commitment to local manufacturing presence and growth in Asia, complementing our recent announcements regarding our planned investments in China.
