Powder Metallurgy parts maker PMG Group, headquartered in Füssen, Germany, has acquired Chinese automotive supplier Yangzhou Leader Powder Metallurgy Co, Ltd, (Leader), headquartered in Jiangsu, China. Founded in 1997, Leader currently has around 250 employees and specialises in the production of Powder Metallurgy shock absorber components.
“With the acquisition of Leader, we are systematically continuing our strategic realignment,” stated Dr Marius Gutes, CEO of PMG. “Leader is an effective addition to our production portfolio in the dynamic Chinese market. Our joint customers in China in particular will benefit from this acquisition.”
Prior to this addition, PMG had eight production sites throughout Europe, the United States, and one location in Shanghai, China. The purchase was made as part of the company’s strategic growth plan, which is expected to lie in Powder Metallurgy components for the automotive sector and beyond. By offering localised, custom solutions the company anticipates an increase in its value to customers.
PMG will gradually add Leader to its shock absorbers business unit, with Leader remaining a separate production unit under its current management, though supported by PMG’s investments and technological innovations. Through this effort, the company aims to make Leader the biggest local Chinese PM shock absorber supplier. During the integration, the two companies will honour all of Leader’s existing supply contracts.
“We are looking forward to advancing the development and production of powder metal components under the PMG umbrella even more successfully than before,” stated Ge, CEO at Leader. “PMG is going to make Leader’s dream of becoming the best and biggest shock absorber supplier in China possible.”
Dr Gutes concluded, “Our success is based, first and foremost, on people – the employees in our companies. This is true for both PMG and Leader. Our claim ‘Passion drives us’ stands for our passion for entrepreneurial success, for best solutions for our clients, for stable partnerships with our business partners, for motivated teams, and for attractive jobs. Leader is a very good example of entrepreneurial spirit. Therefore, and with this in mind, we warmly welcome our new colleagues from Leader to the PMG family!”