TMD Friction and HELLA plan joint venture for original equipment quality brake components

Leverkusen/Lippstadt (ots) - TMD Friction and HELLA have today
announced their intention to establish a new joint venture. Under the
brand name HELLA Pagid the partners intend to distribute brake
components for the worldwide automotive aftermarket. The
jointly-owned enterprise, in which each partner will have a 50
percent share, is to be established as an independent sales company
with its headquarter in Essen, Germany. Subject to the required
approval by the relevant competition authorities the joint venture
will start operations on January 1st, 2013.

The goal of TMD Friction and HELLA is to build up a leading global
position in the supply of brake components for all on road vehicles.
The joint venture will benefit from the respective areas of expertise
of the two partners. TMD Friction is a leading global manufacturer of
brake pads, which along with other components have been marketed
under the premium quality brand Pagid. In future these products will,
with the exception of the British market, be distributed exclusively
through the global HELLA trading organisation. This cooperation will
enable the Aftermarket specialist to extend its product range with
original equipment quality brake components under a strong brand and
open up a further high value segment in the replacement parts
aftermarket.

"For both companies the new HELLA Pagid joint venture is an
outstanding opportunity to expand their global market position",
confirms Carsten Albrecht, Member of the HELLA Management Board,
Business Division Aftermarket & Special OE. "Pagid brake friction is
produced by TMD Friction, a group known for its excellent quality and
cutting-edge technology. This brand with a range of products
completing the full braking system is a natural fit within the HELLA
product portfolio, perfectly meeting the high standards of our
customers and our own product philosophy."

Since 2006 TMD Friction and HELLA have been cooperating in the
wholesale business in Scandinavia and the Baltics. In 2010 the two
companies have begun to intensify their cooperation, mutually
reinforcing their respective positions on the Chinese aftermarket.

"As long-standing partners we have already achieved a great deal
and have excellent experiences together. This joint venture is the
next logical step in our cooperation", states Josef Besting, Senior
Vice President Aftermarket at TMD Friction. "With HELLA Pagid we will
in future be able to deliver our customers worldwide the best
possible combination of range, top quality and service."

TMD Friction and HELLA will provide more information about the
cooperation once the joint venture has been approved by the
competition authorities.

Press contact:
Tobias Wolff
pr people
Cologne
Telefon: +49 221 534 1088 37
Email: t.wolff@pr-people.de