Japan-based Stanley Electric buys vehicular lighting firm Hella Philippines
MANILA, NNA – Japanese automotive lamp maker Stanley Electric Co. has bought a majority share in the Philippine manufacturing unit of German automotive parts maker Hella GmbH & Co. to penetrate further into the Southeast Asian country’s growing vehicle market.
The Japanese firm acquired a 90 percent stake in Hella-Phil. Inc. on Oct. 22 for around 300 million yen ($2.75 million), a Stanley Electric corporate planning official told NNA Monday. It bought the stake from the German firm’s regional headquarters Hella Asia Pacific Pty. Ltd.
Hella-Phil. supplies lamps, mainly to Japanese motorcycle makers, from a plant in Cavite Province south of Manila, the official said. Stanley said in a statement Monday its affiliate had already been selling parts for those lamps.
The Tokyo-based company plans to rename the local unit Stanley Electric Philippines Inc. in Decenber, which will be capitalized at 40 million pesos ($783,000), the statement said.
Hella-Phil. is expected to post 500 million to 700 million yen in sales in the business year starting from April 2020. It will start producing lamps for cars in three to five years, the official said.
Stanley has other Southeast Asia production sites in Indonesia, Thailand and Vietnam.
The Philippine new vehicle sales have continued to grow, posting a 2.4 percent year-on-year increase in the first nine months of this year, according to industry data.