The sale price for the venture, called STT Technologies Inc, will be in the mid double-digit million Euro range, the company says.
“We shall amicably settle the arbitration proceedings and hence strengthen considerably our financial basis for the internationalization of our business,” said CEO Dr.Wolfgang Krause, responsible for SHW’s pumps and engine components business segment.
With the sale of its joint venture stake, SHW reportedly gains free access to the North American market, and plans to make the NAFTA region a special focus point, alongside existing activities in China and Brazil.
“We still consider the North American vehicle market as very interesting; based on our CO2-relevant products we see good growth opportunities there,” said Dr Krause. “We also gain tailwind from the latest initiative of the Obama administration, requiring from the OEMs to cut fuel consumption by approximately 50 percent until 2025.”