The investment company Mutares DE000A0SMSH2 is taking over the Italian brake plant at the Cairo Montenotte site from Continental DE0005439004.

Mutares will thus strengthen its automotive supply division, while Conti will focus more on its core business, the two companies said Wednesday in Munich and Frankfurt. The companies did not disclose financial details.

The plant in Cairo Montenotte, with approximately 400 employees, manufactures drum brakes and is expected to generate sales of approximately €100 million this year. Conti has been reducing capacity in its automotive supply division for some time to reduce costs and focus its research and development activities and investments more strongly on future technology. The companies expect the sale of the plant to be completed in the fourth quarter, following the planned stock market spin-off of Conti's automotive supply division as the new company Aumovio.