Metair seeks Russia deal in bid to move parts from Turkey
METAIR is in talks with a leading battery manufacturer in Russia to help it distribute its automotive parts from Turkey that are barred from entering Moscow due to an ongoing political stand-off between the two nations.The South African manufacturer of vehicle components, such as batteries, brake pads, and spark plugs, said it was seeking a 50% stake in this Russian company to bring a halt to sliding exports from its Turkish plant, Mutlu Akü.The value of the acquisition would be between $3m and $10m, Metair CEO Theo Loock said on Thursday.Mr Loock said he hoped to have the deal finalised within in the next 24-30 months.Metair exports from Mutlu Akü, Turkey’s largest battery manufacturer and distributor, and exports fell 41% in the 12 months to December.This contributed to a 12.2% drop in profit for the year, to R554.8m, and a decline in the operating profit margin to 10.2% from 11.4% in 2014.Other factors that hit profits included the loss of recycling margins to lower lead prices a...
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