Plastic Omnium Auto Inergy (Levallois-Perret, France) has formed a joint venture with China's Beijing Hainachuan Automotive Parts Co., a unit of Beijing Automotive Industry Co. (BAIC). BAIC is one of China's leading auto manufacturers and sells vehicles in China under its own brand and through joint ventures with Mercedes-Benz and Hyundai Motor.
|China fuel system JV to supply foreign OEMs|
The new company will be owned 40% by BHAP and 60% by Plastic Omnium Auto Inergy, which will contribute its Beijing production plant, where fuel systems for Hyundai are already being produced.
The transaction strengthens Plastic Omnium Auto Inergy's growth potential in China, the world's largest automobile market, by creating a cooperative relationship with BAIC and its partners Mercedes and Hyundai in China. With a combined total of 12 plants in China for its two automotive businesses - exterior components and composites and fuel systems - Plastic Omnium is pursuing its rapid development in the market, with the goal of fast growing revenues in the years to come.
Following the announcement in May 2011 of the acquisition of Ford's fuel system manufacturing assets in the United States, this new transaction reaffirms the Group's strategic commitment to accelerating its already sustained pace of organic development through targeted external growth operations in fast-expanding regions and with new customers.
Beijing Hainachuan is one of China's leading auto component manufacturers. It also has joint ventures with Delphi, Visteon, Johnson Controls and Lear Corp.-[email protected]