Akebono purchases Bosch brakes

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October 7, 2009

Should have positive impact on local plant

By LISA SIMPSON STRANGE The Glasgow Daily Times Wed Oct 07, 2009, 02:24 PM CDT

A recent acquisition by the corporate headquarters that operates a local company may bring more production and jobs to the area by next year.

The purchase of the foundation brake assets of Robert Bosch LLC by Akebono Brake Industry Co., LTD of Japan on Sept. 24, will be a good thing for the Glasgow plant, according to Carl Lay, vice president of administration, in Elizabethtown.

“We definitely think it will have a positive impact,” Lay said. “We are just at the stage where we’ve reached agreement on the asset purchase and we anticipate completion by the end of 2009. We feel in 2010 we’ll start seeing the impact in all of our operations including the Glasgow location and Elizabethtown.”

Akebono agreed to pay $10 million in the deal, which includes Bosch assets to make corner modules, drum brakes, disc brakes, brake calipers and other components. They are expected to generate $580 million in sales this year, according to Akebono’s press release.

ABMA, LLC is the new company name that was established for the Bosch purchase. It will be a fully owned subsidiary of Akebono Brake Corporation North America and will also be based in Elizabethtown. The new Bosch assets acquired by Akebono include manufacturing operations in Clarksville, Tenn., and Columbia, S.C.

Akebono has been restructuring its business as a result of the downturn in automobile sales leading to an excess in production capacity and increased cost competition. The acquisition of the Bosch brake assets should consolidate Akebono’s position in the market and significantly increase sales in North America, according to the company.

Akebono Brake Corpora-tion’s North American headquarters is located in Elizabethtown. Other locations include a research and development facility in Farmington Hills, Mich., with manufacturing operations in Glasgow and Elizabethtown. Total em-ployment for Akebono North America’s operations is currently about 1,500 workers before the addition of the two new plants in Clarksville, Tenn., and Columbia, S.C.

Lay said the purchase will expand product offerings and allow the company to reach out and have deeper relationships with key customers and possibly new ones.

“It will mean growth for Akebono, their associates and the communities (where their plants are located),” he said.

Dan Iacconi, executive director for Glasgow-Barren County Industrial Development Economic Authority, doesn’t have specifics from local company officials on any expected changes yet.

“They did indicate this week there will be movement, which is good,” he said.

Lay confirmed that positive changes are on the horizon for the two Kentucky plants.

“It’s a little early to know what exactly, but yes, it will really have a good positive impact,” he said.

Along with the manufacturing sites in Clarksville, Tenn., and Columbia, S.C., Akebono will acquire certain assets and administrative functions currently located in six other North American locations.

Bosch had announced its intention to restructure its brake business during a press conference earlier this year. The company will continue to carry out its own restructuring, which includes the potential closure of the manufacturing site in Johnson City, Tenn., as well as the closure of Knoxville, Tenn., as was already announced.

Information from the Associated Press is included in this story.

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