BRANTFORD, ontario – The purchase of Wescast Industries by the Chinese company Sichuan Bohong Industry has hit another delay. But for Westcast, each delay means a $2 million payday.

The previously announced acquisition has been a while in the making, which could prove costly for Bohong. Included in the deal is a stipulation that if it is not completed by certain deadlines – this past August 31st being one of them – Bohong will owe Westcast $2 million.

The new deadline is now November 30th, 2012. If the deal is not completed by that date, either company may terminate the agreement and Westcast will retain the deposits.

Bohong requires debt financing from the China Development Bank in order to complete the acquisition, and with the sometimes tricky nature of Chinese corporate politics this is clearly proving to be a challenge.

The total value of the deal is pegged at $195 million.

Wescast Industries casts exhaust manifolds for passenger cars and light trucks. They also designs, cast, machine and assemble exhaust system components. Wescast employs approximately 2,100 people in seven production facilities and five sales and design centres in Canada, Hungary, the United States, Germany, Japan and China.

www.wescast.com