The companies said in a joint statement  that the alliance would improve Hidria's position on the North American market while strengthening Orchid's position globally.

"Hidria and Orchid expect significant increase in sales of their high-quality solutions and products in the area of electric motors, which will represent an important contribution to the green mobility of the future," the press release reads.

Orchid International, based in Brentwood, Tennessee, describes itself as a leader in the North American market in electrical steel laminations, electric motor and generator cores, and power transformer devices.

Hidria is a diverse industrial group specialised in mechanical and electrical components for the automotive industry.

Both companies are privately held.