TU-TESL

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(photo source: Faurecia) according to foreign media reports, on October 14 local time, Faurecia announced that it had signed a memorandum of understanding to acquire the remaining 50% shares of SAS, a joint venture with Continental, for 225 million euros. Founded in 1996, the joint venture has become a key enterprise in the field of complex interior module assembly and logistics. The company employs 4490 people at its plants in Europe, North and South America and expects strong sales growth in 2019 to reach about 700 million euros (5.45 billion yuan). The acquisition will help expand Faurecia's system integration products to cover all interior modules as well as Faurecia's new product lines such as displays, electronics, sensors and thermal management. Faurecia's acquisition of SAS can obtain SAS's core competitiveness and complexity management ability in system integration, so as to improve its just in time production plant network. In addition, the operating profit, net income and return on occupied capital (roce) of Faurecia can be increased immediately after the acquisition, and the financial performance of SAS will be incorporated into the interior decoration business group. There can also be synergies in manufacturing engineering, logistics and optimizing global strategies, as well as in the procurement and sales administration (SG & A). With its orders showing strong growth potential, sales in Florida will exceed 1 billion euros (about 7.8 billion yuan) by 2024, or a compound annual growth rate of about 9%. By diversifying the market and customers, especially in China, Faurecia's business will accelerate its growth. "After the establishment of Faurecia Clarion electronics business group, the acquisition will expand our cockpit system expertise and help us build a" future cockpit, "said Patrick Koller, chief executive of Faurecia. And SAS has strong growth potential, which also provides excellent growth opportunities for Faurecia in terms of strategy and finance. "