WARREN, Ohio, April 19, 2011 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced that it has enhanced its current joint venture agreement with the Minda Group to add Stoneridge sensor technology and products in India which will enable the Company to accelerate its expansion in fast-growing end markets in Asia.
The initial stages of the agreement will allow the joint venture to expand its product offering by manufacturing, distributing and selling various speed, low- and mid-temperature, position and level sensors, as well as utilize applicable technical information licensed by Stoneridge. The products will serve the commercial vehicle and 2-3-4-wheel product markets.
As the market expands into more sophisticated products, the joint venture will expand its product offering by manufacturing, distributing and selling various high-temperature and other sensor products also utilizing applicable technical information licensed by Stoneridge, Inc. The products will serve the commercial vehicle and four-wheel (car) product markets. Stoneridge will be paid royalties from the Minda/Stoneridge joint venture for these more technically advanced products.
Minda will now be able to expand its product offerings beyond instrumentation and gauges into the sensor markets, and sales of these products will be limited to the India, southern Asia and Indonesia regions. Minda's annual sales are expected to increase to $50 million to $75 million within the next two to three years, compared with $33.4 million in 2010.
"Minda has been a valued partner to Stoneridge since 2004, and the joint venture has played an important role in our strategic global expansion," said John Corey, president and chief executive officer of Stoneridge. "As we move forward under our new agreement, our expanded relationship with Minda will help us continue to take advantage of our outstanding growth opportunities in the Asian markets."
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the medium- and heavy-duty truck, automotive and agricultural and off-highway vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release. Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in medium- and heavy-duty truck, automotive or agricultural and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.
SOURCE Stoneridge, Inc.