Brewer Automotive Components merged with sister company in Virginia
Monday, January 11, 2010
Company leaders at Brewer Automotive Components have known for months
that its parent firm planned to merge BAC with sister company Wytheville
Technologies Inc. in Virginia, but they did not make the announcement
official until Friday.
“The newly merged company will be known as Somic America Inc.,” David
Keane, vice president of the new automotive component company, said in a
statement Friday.
BAC, at 6 Baker Blvd., makes suspension and steering components for a
number of automakers with Toyota and Subaru its main customers.
“The company will continue to operate manufacturing facilities in
Maine and Virginia, supplying the North American automobile industry,
including Toyota and Subaru,” Keane’s statement said.
The Brewer facility opened in 1989 and a sister plant opened in
Wytheville, Va., three years later, as a partnership between ZF Group
North America, based in Northville, Mich., and Somic Ishikawa Inc. of
Hamamatsu, Japan, another leading parts manufacturer.
The two plants combined employ about 195 people.
ZF Group North America is the parent company of Brewer’s ZF Lemforder,
which is closing its Brewer plant in mid-2010.
“BAC used to be a joint venture between Lemforder and Ishikawa, and
Lemforder is no longer a part of the infrastructure,” said Tanya
Pereira, Brewer’s deputy economic development director. “Somic America
basically owns the whole thing now. They’re just trying to clean up the
ownership and their holdings in North Amer-ica.”
Somic Ishikawa opened Wytheville Technologies Inc. in 2000 to produce
rack ends, tie rod ends, u-bolts and other automotive parts, according
to its Web site.
“The merger gives the company direct access to machining and plating
capabilities and capacities and is designed to make the company more
competitive in the difficult automotive industry,” said Keane, who
served as a BAC controller before the merger. “WTI has been the
second-largest supplier of material and plating services to BAC for
several years.”
The merger will not mean any local job losses, Pereira stressed,
adding, “If anything, it strengthens things in Brewer for the next few
years.”
A copyright story from the Bangor
Daily News, Monday, January 11, 2010 by Nok-Noi Ricker. |