December 2 (SeeNews) - Romania will become a production hub for Swedish safety systems manufacturer Holmbergs, which recently acquired local child safety auto products maker Te-Rox Prod, the Romanian company said on Wednesday.
Holmbergs will relocate part of its production operations from Hungary and Lithuania to Romania, Te-Rox Prod said in a press release on Wednesday.
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Thus, products made in Te-Rox Prod factories in Pascani, Roman and Ruginoasa will reach the markets of Europe, the U.S. and Asia, it added.
"The sale to Holmbergs creates the premises for the development of the brand we founded in 2007, which today is a very well organized industrial platform. Holmbergs found in Te-Rox Prod the right partner for the development of its production in Europe, because we have the resilience that they were looking for in order to implement their expansion strategy," Te-Rox Prod founder and owner Doina Cepalis said.
Cepalis will run Holmberg's business in Romania and will sit on the management board.
On November 20, Holmberg said in a press release announcing the deal that the acquisition of Te-Rox is providing a platform for continued growth as well as the ability to serve its customers with local and swift production.
According to the announcement, the sellers will become shareholders of Holmbergs and continue to operate the business as well as jointly pursue new business opportunities together with Holmbergs.
The value of the deal was not disclosed.
Holmbergs was founded in 1938 in Sweden and has since then grown into an international organisation with production facilities in Europe, Hong Kong and China.
Founded in 2007 in Pascani, Te-Rox Prod manufactures covers and harness systems for child safety seats in three factories, where it employs over 900.