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China's Geely acquires Australian auto parts supplier

(Xinhua)
Updated: 2009-03-27 17:39

China's largest independent carmaker Geely Automobile confirmed Friday that it had acquired Drivetrain Systems International (DSI), the world's second largest auto transmission supplier.

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The agreement signing ceremony was held Friday in New South Wales, Australia, said Wang Ziliang, vice-chairman of Zhejiang-based Geely Automobile Holdings.

Shares of Geely Automobile were suspended Friday morning at the Hong Kong stock exchange, according to an online statement. No other details were provided.

"The suspension has nothing to do with the rumor that Geely has talked with Ford about buying its Swedish unit Volvo," said Wang Ziliang.

He declined to give more details on the subject.

In the agreement signed between Geely and DSI, Geely will invest in the research and development of the Australian auto transmission supplier to help keep its leading role in the world's auto parts market.

DSI entered bankruptcy proceedings in February due to the slowdown, said Wang.

Wang said that Geely will continue to maintain DSI brand and its independence to better serve its global clients.