Brussels -Recticel's joint venture company Proseat has sold its 35 percent stake in the seating production joint venture JP Foam Manufacturing to Johnson Controls.
The European polyurethane producer said in a 7 Dec announcement that the transaction will have no material impact on Recticel results this year and in the years after, but will generate about Euro 3.5 million ($4693 million) net disposal proceeds at Recticel level.
In 2006, Proseat, the 51/49 joint venture between Recticel and the Canadian group in Woodbridge, decided to set up a 35/65 manufacturing joint venture with Johnson Controls for moulding foam seating cushions. The deal allowed each partner to carry out its own programmes in Zory, Poland and Lucenec, Slovakia, the two manufacturing sites of the joint venture.
Recticel said that as a consequence of the sales of its 35 percent stake, Proseat will transfer its programmes from the JP Foam Manufacturing plants to its existing plants.
Separately, Recticel said its Interiors division has not gained contracts for the new Mercedes C-class but has "won several new interior-trim contracts with premium car manufacturers."
The group feels its technological developments, such as Colo-Sense Lite and CompoLite, are currently well-positioned in the market, and have resulted into four new contracts won with BMW, Mercedes and Porsche.
Some of these new contracts will be produced in China, where the group said it will operate three production sites by the end of 2012.