10-Nov-1999, by David Stakun

Technitrol’s AMI DODUCO Completes Acquisition of China Operation

EXPORT, PA - AMI DODUCO, a unit of Technitrol (NYSE: TNL), announced it has completed its acquisition of the operating assets of the Tianjin Electrical Metal Works (TEM) electrical contacts business based in Tianjin, the People’s Republic of China, from the Tianjin XinHao Investment Development Company. The transaction, terms of which were not disclosed, is pursuant to the memorandum of understanding signed by both parties in May 1999.
AMI DODUCO has established a wholly foreign-owned enterprise in Tianjin City and obtained all government approvals necessary to manufacture and sell silver-based electrical contact products in China. These products include contact parts, materials, and assemblies for manufacturers of switches, relays, motor controls and circuit breakers used in the appliance, automotive and construction industries.
A ceremony in Tianjin marking the transfer of ownership of the newly renovated facility and equipment is set for November 16.
“We appreciate the effort and support of the Tianjin XinHao Investment Development Company in completing this transaction,” said AMI DODUCO President James J. Rafferty, Jr. “With this acquisition, AMI DODUCO becomes the first Western manufacturer of contacts in China. The Tianjin facility puts us in an excellent position to bring the benefits of world-class contact technology to local manufacturers addressing the Chinese market and to large, multinational customers with production facilities in East Asia.”
Headed by Guenther Horn, Vice President of Technology and Business Development, a team of engineers from AMI DODUCO’s operations in Germany and North America will bring the facility on line while a permanent work force is installed. Production in Tianjin scheduled to begin in the first quarter of 2000, Horn said.