International Automotive Components Group SA, known as IAC, has announced its entry into the South African market with the formation of a new joint venture.
IAC is collaborating with Feltex Automotive to create IAC-Feltex Pty Ltd. IAC will provide design, engineering and manufacturing expertise for vehicle interior components. In addition to product and process expertise, Feltex brings experience from successfully operating in South Africa since 1937. The IAC-Feltex joint venture will be located in the East London area of South Africa.
The joint venture will support current contracts for Ford Motor Co., Mercedes-Benz AG, Toyota Motor Corp. and Volkswagen South Africa. It will also supply interior trim, flooring systems, trunk trim and wheel arch liners to global platforms from the plant.
“We believe that the joint venture’s complementary products and design, engineering and manufacturing expertise will provide value to our multinational customers, which are producing vehicles in the Republic of South Africa,” James Kamsickas, president and CEO of IAC, said in a news release.
In June, IAC filed with the US Securities and Exchange Commission to take the supplier public with an initial public offering. IAC plans to raise up to $115 million in its Initial Public Offering (IPO). Timing of the IPO is unknown at this time.
IAC’s expansion into new and emerging markets has remained consistent since the company was established seven years ago. Over the past 24 months, IAC has entered Malaysia and Thailand through joint venture agreements, opened a greenfield manufacturing facility in Romania, a sales and engineering office in Korea, and opened its 11th plant in China.
IAC Group is a leading global supplier of automotive components and systems, including interior and exterior trim. The company’s 2012 sales were $4.7 billion. Headquartered in Luxembourg, IAC Group operates 79 manufacturing facilities in 18 countries. The company has approximately 90 total locations in 20 countries, including 22 design, technical and commercial centres, and employs more than 26,000 people globally.
The company, formed in 2006 through a series of acquisitions by Wilbur Ross’ New York investment firm, posted a net loss of $14 million on revenue of $1.24 billion for its first quarter this year.
