On 1 June, Decoma acquired, or assumed certain leases of, Meridian's composites business and facilities located in Lenoir, Newton and Salisbury (all in North Carolina, USA), and Celaya, Hermosillo and Saltillo (all in Mexico).

Decoma has also assumed the lease of Meridian's sheet moulding compound (SMC) facility in Grabill, Indiana, USA.

The terms of the transaction are not being disclosed.

"Meridian's Composite operations are world-class, with high quality management and associates, with excellent customer relations primarily in the heavy truck and non-automotive markets," says Richard E. Newsted, Meridian's President and CEO. "The decision to divest certain portions of our Composite business is another example of our continued focus on taking necessary actions to improve Meridian's overall liquidity position in response to the severely depressed North American economic and automotive environment."

Meridian Automotive Systems, headquartered in Allen Park, Michigan, is a Tier 1 automotive, heavy truck, consumer and industrial products supplier using metal, plastic and composites technologies. Meridian operates 12 facilities in the USA, Canada and Mexico.

Decoma Composites LLC is a unit of Decoma International Corp, a supplier of interior and exterior vehicle systems to the global automotive industry.

Decoma International is an operating unit of Magna International Inc, Aurora, Ontario, Canada, a diversified automotive supplier which develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles.

Magna is currently involved in a bid to protect car maker Opel from its parent company General Motors' bankruptcy.