Milton, Ga.-based Exide Technologies (NASDAQ: XIDE) is expanding its presence in Brazil, the company announced Friday, forming a strategic partnership with local company Comab Industria, Comercio, e Menutencado de Baterias -- mercifully shortened to "Comab" in ordinary usage.
Together, the companies will produce and service Motive Power industrial batteries for use, primarily, in electric forklifts in Brazil. The parties will utilize a Comab facility located outside Sao Paulo in Brazil for the production. Exide will supply materials and technology needed for production; Comab will supply the factory, local management, and after-sales support. Production is scheduled to begin late this year.
Financial details of the partnership were not disclosed, nor were expectations for future sales. However, almost any sales gains would be significant for Exide, which currently makes 80% of its sales outside Brazil. Brazilian sales, grouped into a category described as "other," account for a fraction of the remaining 20% of global sales.
Exide shares gained 1.4% on the announcement, closing at $2.87 per share Friday.
