Kolkata, July 10, 2008 (IANS)

The Kolkata-based Ruia Group, which has a controlling interest in tyre maker Dunlop India, has acquired British auto component manufacturer Schlegel Automotive Europe, according to group chairman Pawan Kumar Ruia. Schlegel, which has assets worth $30 million, supplies rubber sealings to auto majors such as BMW, Bentley, Toyota, Honda, Ford, Mitsubishi, Renault and Opel.

He, however, did not disclose the amount invested for the acquisition, but said it comprised a $12-million bank loan and internal accruals. Schlegel will part-fund this investment, he said. The Indian arm, called Schlegel Automotive India Pvt. Ltd, will be a 100 percent subsidiary of Schlegel Europe.

"Keeping in mind the growing demand in the automotive sector, we are planning to set up a Schlegel manufacturing unit in India. We will invest $15 million for expansion in India," Ruia said here Wednesday. "We plan to set up one mother plant in India, where mixing and extrusion work will be carried out and the finishing lines can be done at various units situated near the customer bases," said Schlegel Europe managing director of global operations David Boynton.

While the location has not been finalised, Boynton said production would begin within a year. Production capacity and product line would also be expanded at the UK unit on an investment of $6-7 million, Ruia said. Ruia acquired Schlegel through Global Finvest Ltd, a Ruia-owned special purpose vehicle based in the UK.

The Ruia Group ventured into the tyre industries in 2005 with the acquisition of Dunlop and Falcon Tyres. In 2007, it acquired the Mumbai-based Monotona Tyres and Industronics in Malaysia.

Schlegel Automotive Europe Limited (formerly Metzeler Automotive Profile Systems UK Limited) was established in 1952, its principal activity being the manufacture and assembly of sealing system components for the automotive industry. Based centrally within the United Kingdom, the company benefits from an excellent logistical position for both the UK and Mainland Europe. On a 72,000m² manufacturing site, 22,000m² of which is occupied by the factory in Coalville, Leicestershire, the plant currently employees 452 people.

Schlegel is the second largest supplier of elastomeric vehicle sealing systems for automotive OEM’s (Original Equipment Manufacturers) and Tier 1 suppliers in the UK. It designs, manufactures and sells a complete line of highly engineered vehicle sealing systems for doors, windows, hoods (bonnets), trunks (boots) and sunroofs. These products include primary and secondary door sealing systems, glass run channels, and other formed rubber and plastic parts. All these components serve to seal the vehicle interior from noise, water / dust ingress and to fill the gaps between the body panels whilst improving the aesthetic appearance. Sealing system products are primarily produced from rubber compound, however we also produce extruded and moulded plastic parts.

Turnover for Schlegel Automotive in 2006 was £28.3 million.