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Parts supplier BorgWarner said that it will sell its tire pressure testing system business to Huf Electronics Co., Ltd. Both parties have reached an agreement but no financial terms have been disclosed.
According to the agreement, BorgWarner will also sell its factory in Germany, which employs 230 people. The agreement still needs the approval of the relevant management department.
When BorgWarner acquired the Beir diesel engine cold start and ignition system business in 2005, it acquired the tire pressure detection system business.
BorgWarner said that its Tire Pressure Monitoring System business's technology meets the strict European standards, but it has deviated from the company's development focus, because BorgWarner's key business is in the power system.
Borgwarner said that the sale of the business may have caused a loss of 10 to 15 million U.S. dollars, depending on the price at which the business was acquired.
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