Stock News: Magnecomp unit buys 75 pct stake in Dutch firm, to invest in China

Magnecomp International Ltd (MIL) said its 83.3 pct-owned unit Mansfield Manufacturing Co Ltd (MSF) will acquire a 75 pct stake in Exerion Precision Technology of the Netherlands for 2 mln eur. It said the acquisition will help Magnecomp secure high-end manufacturing and assembly technology and expand into Eastern Europe. The acquisition is expected to be completed by the end of this year. Meanwhile, MSF will also buy a piece of industrial land in Suzhou, China for 8.5 mln yuan, on which it will build a 48-mln-yuan new factory under phase 1 of the development. The facility is expected to begin production in the third quarter of 2008. MSF has also set up a subsidiary called Mansfield Manufacturing (Dalian) Co Ltd in Dalian, China for its metal stamping and tooling business. "The recent developments... are expected to lead to better contributions from this key business unit," Magnecomp CEO Steven Campbell said in a statement.