] South Korea’s Hanon Systems
will join hands with China’s Shandong Binzhou Bohai Piston to launch a new auto parts firm in China, local news reported on Aug. 18.
The Korean auto parts-maker has signed a letter of intent to establish a 49:51 joint venture with the Chinese counterpart. The two firms will initially invest a total of 33 million yuan (US$4.98 million) in the new venture based in Shandong Province.
The venture will mainly produce air conditioning units for Beijing Benz, the firm that manufactures Mercedes-Benz vehicles in China.
Official homepage of Hanon Systems
Shandong Binzhou Bohai Piston, an auto parts affiliate of Beijing Automotive Industry Group, manufactures pistons for vehicles as well as agricultural machines and ships. The world’s fourth-largest piston-maker is listed on the Shanghai Stock Exchange.
Hanon Systems, formerly Halla Visteon Climate Control, primarily manufactures heating, ventilation and air conditioning systems for vehicles. Its main clients include Hyundai Motor and Kia Motors. The company is also discussing supply deal with Tesla Motors, according to news reports.
Ahn Sung-mi (email@example.com