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purchased wire carrier from Schlegel Ireland and incorporated it
into the automotive seals it manufactured. Schlegel UK purchased
approximately 35 to 40 percent of the wire carrier produced by
Schlegel Ireland, and those purchases accounted for approximately
25 to 30 percent of the total raw material costs in the Schlegel
UK automotive division.
Schlegel Corporation licensed to Schlegel UK additional
technology that was essential to the manufacture of most of the
products in the automotive and building products divisions, and
Schlegel UK paid royalties to Schlegel Corporation for the use of
this technology. The standard royalty rate was 5 percent of the
selling price of products using the technology.
Schlegel GmbH
Schlegel GmbH was also a subsidiary of Schlegel Corporation.
It was formed under the laws of the former Federal Republic of
Germany and was acquired by Schlegel Corporation on August 22,
1972. The business of Schlegel GmbH was divided into two
separate divisions: 75 percent automotive parts manufacturing
and 25 percent building products manufacturing. The automotive
division of Schlegel GmbH had five main customers that were the
largest German automotive producers. While most of the market
for German automotive seals in 1989 consisted of rubber-based
seals, Schlegel GmbH produced only plastic automotive seals.
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Last modified: May 25, 2011