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Schefenacker expands production capacity in China |
- Joint venture with well established local partner
- Received business license from local Chinese government October 19th
- Construction of plant started; production as from Q2 2008
- CEO Ulrich Bruhnke: “This joint venture substantially expands our strategic footprint in the fastest growing automotive market in the world
Portchester (October 26, 2007) Schefenacker plc, the leading producer of exterior mirrors and Ningbo Huaxiang Electronic Company Ltd has founded a 50/50 Joint Venture for the production of exterior mirrors and other automotive components in China.
Ningbo Huaxiang Electronic Company Ltd. is a public listed company with a number of joint venture companies in the Chinese automotive supply sector and produces high quality interior and exterior components for Shanghai Volkswagen and Shanghai General Motors and other local vehicle manufacturers. The JV partners look back to a successful cooperation for the production of exterior mirrors for the current Volkswagen Passat produced in Shanghai since 2005.
The new joint venture company called Ningbo Schefenacker Huaxiang Automotive Mirror Co., Ltd. will operate a best practice robotic spray application paint shop and modern injection moulding machines in a new 15,000 sqm plant currently under construction in the province Zhejiang, near Shanghai. Operations are scheduled to start in early summer 2008 with production of exterior mirrors and fuel filler modules for local vehicle programs of Volkswagen and General Motors.
“China is a very important strategic supply base for our global mirror contracts. This joint venture, with a long established and trusted partner, substantially expands our strategic footprint in the fastest growing automotive market in the world said Ulrich Bruhnke, CEO of Schefenacker plc.
The new General Manager of Ningbo Schefenacker Huaxiang Automotive Mirror Co., Ltd. Mr. Rui Wang said: "We quickly received several large orders for the supply of exterior mirrors for diverse customers. This shows that the industry appreciates our decision for common operations in China. Our plant is prepared for a quick and significant extension of capacities."
As part of the joint venture agreement Schefenacker plc provides manufacturing and mirror design technology and Ningbo Huaxiang Electronic Company Ltd. provides the land use rights and contributes the assets currently employed in producing the VW Passat mirror. In addition, both partners have committed a capital contribution of around EUR 10 million over the next two years. Schefenacker’s total cash contribution will be around EUR 3.3 million.
For Schefenacker plc, the Ningbo Schefenacker Huaxiang Automotive Mirror Co., Ltd. is the 3rd supply base in China next to the two assembly plants that are already operational in Bejing and Yancheng for the supply of automotive components to Hyundai and Kia.
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