Milton, Ga.-based Exide Technologies is expanding its presence in Brazil, the company announced Friday, forming a strategic partnership with local company Comab Industria, Comercio, e Menutencado de Baterias -- mercifully shortened to "Comab" in ordinary usage.
Together, the companies will produce and service Motive Power industrial batteries for use, primarily, in electric forklifts in Brazil. The parties will utilize a Comab facility located outside Sao Paulo in Brazil for the production. Exide will supply materials and technology needed for production; Comab will supply the factory, local management, and after-sales support. Production is scheduled to begin late this year.
Financial details of the partnership were not disclosed, nor were expectations for future sales. However, almost any sales gains would be significant for Exide, which currently makes 80% of its sales outside Brazil. Brazilian sales, grouped into a category described as "other," account for a fraction of the remaining 20% of global sales.
Exide shares gained 1.4% on the announcement, closing at $2.87 per share Friday.
The article Exide Partners With Comab to Produce Batteries in Brazil originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.