Aumovio Completes Sale of Mechelen Plant to Dumarey Group
Aumovio, a spin-off automotive division of the tier supplier Continental, has successfully sold its electronic components manufacturing facility in Mechelen, Belgium, to Dumarey Group. This sale is part of Aumovio’s strategy to adapt to declining demand in the European automotive market.
Key Points:
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Contract Manufacturing Agreement: Dumarey Group will enter a transitional period with Aumovio, operating under a contract manufacturing agreement.
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Production Shift: Aumovio’s Mechelen plant is known for producing solenoid valves, hydraulic and electronic control units, and wheel speed sensors. However, declining demand and price pressure from market conditions prompted the sale.
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Market Challenges: Aumovio’s spokesperson cited structural volume decline in the European automotive market, along with geopolitical challenges and increasing global competition, as factors influencing the company’s decision.
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Future Plans: The Mechelen facility will continue to support Aumovio’s customers during the transition, with production moving to other yet-to-be-finalized locations. Purchase orders will also be redirected accordingly.
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Dumarey Group’s Integration: Dumarey plans to introduce new products and services across several industries, leveraging its expertise in automotive, industrial, marine, and hydrogen propulsion sectors.
Guido Dumarey, President of Dumarey Group, expressed confidence in utilizing existing manufacturing experience to advance operations at the Mechelen plant.
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