Aumovio sells Mechelen advanced components plant to Dumarey Group
Aumovio, the automotive division spin-off from tier supplier Continental, has completed the sale of its electronic components plant in Mechelen, Belgium to Dumarey Group. Dumarey makes propulsion systems, control units and fuel rail systems, among other products.
Aumovio plans to sell its manufacturing site in Mechelen, Belgium, to the Dumarey Group
Aumovio
The plan is for Dumarey to work for a transitional period in a contract manufacturing agreement with Aumovio. Dumarey Group has its roots in Belgium and has long-standing experience across various industry sectors, including automotive.
At Mechelen, Aumovio has been making solenoid valves, hydraulic and electronic control units and wheel speed sensors for the automotive industry. However, the company reports that it is seeing declining demand from the European automotive market, which is adding to price pressure.
A spokesperson for Aumovio said that European automotive market is experiencing structural volume decline, geopolitical volatility and increasing global competition, all of which are putting sustained pressure on prices and margins. Aumovio said that in response it is aligning production with market demand and cost requirements.
When the sell-off was first announced in April this year, Philipp von Hirschheydt, CEO of Aumovio, said the company was confident that Dumarey was the right owner to lead the Mechelen operation into the future.
The Mechelen plant will continue to make components for Aumovio customers as it transfers production to other locations yet to be finalised. Purchase orders and invoicing will be transferred to those other Aumovio plants whereas the physical logistics flow would remain unchanged thanks to the contract manufacturing agreement between Aumovio and Dumarey.
At the same time Dumarey will phase in new products and activities for different industries. As well as automotive, Dumarey provides systems for industrial and off-road, marine and hydrogen propulsion industries.
“The Dumarey Group has extensive experience in repositioning companies,” said Guido Dumarey, president and founder of the group. “For the Mechelen plant, I plan to build on the manufacturing experience gained in existing market segments, whilst also combining this expertise with other initiatives that the Dumarey Group is pursuing across various sectors.”
