German-based MAHLE GmbH took a majority ownership stake last year in the Behr Group, which owns a manufacturing plant on Webster Street. The local plant, once owned by Chrysler, has operated since the 1930s.
MAHLE Behr, which makes heating ventilation and air-conditioning products and parts for automobiles, has around 1,100 employees, according to Rob Baker, manager of the plant at 1600 Webster St.
As part of the deal, Mahle will acquire 13 Delphi plants in six countries, including the one located on Northwoods Boulevard in Vandalia. The plant manufactures thermal and HVAC products for vehicles.
The Vandalia plant, which has about 330 employees, is one of five U.S. Delphi facilities to continue operating through Delphi’s time in Chapter 11 bankruptcy protection, from October 2005 to October 2009.
The transaction is expected to close in the third quarter of 2015, subject to regulatory approvals, both companies said.
Baker said he could not comment on what the sale means for the two plants, but added, “It’s a good opportunity for both plants.”
“It’s too early to talk about specific jobs or the plants,” Baker said.
The Mahle Behr plant has 1.1 million square feet of available space. Around 65 percent of that is now being used for manufacturing, Baker said. Slightly more than half of the 650,000 square feet of space at the Vandalia plant is being used for manufacturing, he said.
Clayton Brown, the Vandalia Delphi plant manager, could not be reached for comment.
In 2009, Delphi exited the safety products business, which employed about 140 people at the time also at the Northwoods plant. The auto-parts maker fully wound down that part of its business in Vandalia in January 2010.
The former General Motors Corp. spun off Delphi, its parts-making arm, in 1999. At the time, Delphi had about 15,000 Dayton-area employees. In recent years, Delphi closed plants in Dayton and Moraine, and leased part of a Kettering plant to parts producer Tenneco.
Delphi and MAHLE also signed a separate letter of intent to sell Delphi’s stake in Shanghai Delphi Automotive Air-Conditioning System Co. Proceeds from this transaction will be in addition to the $727 million paid for the wholly-owned operations, according to a company release.
“Under MAHLE ownership, Delphi Thermal will be a leading systems supplier in the thermal industry, better positioned to serve customers with a global footprint and industry-leading technology portfolio,” Rodney O’Neal, Delphi CEO and president, said in a release. “The business is a good strategic fit for MAHLE, which will benefit our Thermal customers and our Thermal employees.”
About the Author
