Fiat Chrysler sells cast iron business to Brazil's Tupy

Fiat Chrysler said on Friday its has sold its cast iron automotive components business operated through its subsidiary Teksid to Brazil's Tupy for 210 million euros (USD 233 million).

The sale includes Teksid's cast iron production facilities in Brazil, Mexico, Poland and Portugal, in addition to its interest in a joint venture in China. FCA noted that its Teksid's aluminum business is not included in the transaction and will remain a strategic asset in its portfolio.

The deal is expected to close in the second half of 2020.

Tupy specializes in developing and manufacturing engineered structural cast iron components.

The proposed transaction represents another important step in the implementation of FCA's business plan, said Scott Garberding, FCA's global chief manufacturing officer.

Fiat Chrysler and Peugeot agreed Wednesday to merge into a single company that will become the world's fourth-largest automaker.