December 7, 2006
Muskegon Chronicle
Dave Alexander

For the second time this week, a Muskegon transportation parts manufacturer has announced an ownership deal with a German counterpart.

This time, it's the merger of the Holland Group Inc. with German truck parts supplier Otto Sauer Achsenfabrik GmbH of Bessenback, Germany. The Holland Group has the headquarters of its Holland USA division in Muskegon, which employs 300.

The terms of merger of the two privately-held, family-owned manufacturing companies were not disclosed but the deal is expected to be completed by the end of the year.

Holland Group officials say the merger should not affect operations and employment in West Michigan. The newly merged company will have 26 facilities worldwide, 3,000 employees and combined sales of $975 million, the companies reported.

Earlier this week, the Muskegon piston ring operations of Dana Corp., which has less than 200 employees here, was sold to Mahle GmbH of Stuttgart, Germany for $157 million. That deal is expected to be closed in the first quarter of 2007.

The Holland Group produces coupling, lift and suspension systems for trucks, tractors and trailers with headquarters in Holland. The Muskegon operations of Holland USA is involved with trailer parts production. The company also has a Canadian division and an international division, with operations in eight countries including China, Australia and Mexico.

SAF produces integrated axle and suspension systems for trailers. It has strong sales and technical capabilities but is mainly a European company, according to company officials.

With the merger, Holland Group spokesman Ray Behrens said SAF gets access to the North American market and the Holland Group to the European market.

"This makes us a truly global company," Behrens said. "We are very strong in North America and they aren't. They are big and technologically advanced in their European operations."

Besides Germany, SAF has operations in Belarus, Poland, Denmark, France, Hungary, Italy, Serbia, Slovakia, Spain and the Ukraine among other worldwide locations.

The Germany company was founded in 1881 when a steel axle was combined with a plow. Likewise the Holland Group was founded in 1910 to produce a connection between a horse and a plow and has been known as Holland Hitch over the years.

The Muskegon operations at 1950 Industrial Boulevard in the Port City Industrial Park has always produced truck trailer parts as the Neway division under previous owners Lear Siegler and Anchorlok. It was purchased by Holland Group in 1999 and the Holland USA headquarters was moved here in 2001.

The local plant, represented by United Auto Workers 1703, had a four-month lockout in 2004. But the labor-management climate has since improved in the plant to the point that it was recognized with a Muskegon Area Labor-Management Committee award in September.