Asahi Tec Corporation offers various components primarily for the construction and automobile industries. Its products include aluminum components, such as intake manifolds, transfer cases, rear arms, cross members, body frames and sub-frames, steering members, crutch housings, seatback frames, def mount brackets, and motorcycle parts; aluminum wheels; and ductile components, including hanger brackets, differential carriers, front hubs, support beams, port blocks, hydraulic cylinder heads, planet carriers, floating seals, boom posts, and axle assemblies. The company also offers electric power equipment products that comprise transmission and distribution line, and underground cable hardware ...
Founded in 1916
Pension Benefit Guaranty Corporation Announces $40 Million Asahi Tec Settlement
Nov 1 14
The Pension Benefit Guaranty Corporation settled a long-standing lawsuit with Asahi Tec Corporation, that called into question the authority the PBGC, and U.S. courts, have over foreign companies with U.S. operations. Asahi Tec Corp. agreed to pay PBGC $39.5 million. Asahi Tec bought Metaldyne based in Plymouth, Mich., in 2007 for $1.2 billion. Two years later, Metaldyne went bankrupt. PBGC asked Asahi Tec to take on the pensions of Metaldyne's 10,000 workers, and also requested Asahi cover the terminated plan's $200 million in liabilities. In October 2013, a U.S. District Court in Washington, D.C., affirmed its jurisdiction over the foreign company, and said Asahi Tec was liable for the unfunded benefits and the termination premiums of its bankrupt subsidiary. Asahi argued that because it did not make any decisions with respect to Metaldyne's pension plan, it had no obligation to assume the liabilities. The court ruled that was irrelevant, and emphasized in its decision that Asahi extensively reviewed Metaldyne's pension obligations before completing the acquisition. Prior to that ruling, which allowed PBGC's $175 million suit against Asahi to proceed, foreign corporate parents of U.S.-based subsidiaries operated under the assumption that they were not responsible for subsidiary pensions.