Geely buys Australian transmission supplier

Geely Automobile Holdings said yesterday it had acquired Australian automatic transmission supplier Drivetrain System International (DSI).

Zhejiang-based Geely agreed to pay up to A$58 million (HK$313.22 million), including A$47.4 million in cash and the rest in assumed debt.

Under the agreement, Geely would help fund DSI's research and development, the carmaker said on its website.

This is the second overseas acquisition for the mid-sized carmaker, which shifted its business last year to making more expensive hi-tech cars. It bought a 23 per cent stake in Manganese Bronze, the maker of London black cabs, in 2007.

DSI, with an annual capacity of 180,000 automatic transmission systems, supplies parts to Ford Motor and South Korea's Ssangyong Motor. But the Australian firm entered bankruptcy proceedings last month as the global industry downturn weighed on some of its clients, Geely said.

Geely said the acquisition would strengthen its gearbox production line, adding that it would bring the Australian company's products and technology into China.