Sale allows Mectrol to concentrate its efforts and resources on its rapidly growing motion control and automotive business units.
Mectrol will propel motion control and automotive businesses
Mectrol Corporation recently announced the sale of its polyurethane timing belt business to Gates Corporation. The transaction was finalized on November 30, 2004.
The sale of the timing belt business will allow Mectrol to concentrate its efforts and resources on its rapidly growing motion control and automotive business units. Mectrol Corporation will continue to operate with its headquarters, central engineering and manufacturing facility in Salem, New Hampshire, and manufacturing and sales operations in both Pfungstadt and Wallau, Germany, Barcelona, Spain and Puebla, Mexico.
All employees in the Salem facility will be retained in their current positions, either with Gates or with Mectrol. Mectrol Corporation will construct a new manufacturing facility in Salem and will move its mechanical products operation into this new facility within one year.
Gates has formed a new company called Gates Mectrol which will operate the timing belt business. This transaction includes the transfer of approximately 180 of the 580 employees in the Mectrol Group of Companies. The sale involves people and facilities located in Salem, New Hampshire, Cuautla, Mexico and Pfungstadt, Germany.
The acquisition by Gates will create significant new growth opportunities for the Mectrol belt business, and fills an important strategic need for Gates.