Valeo Increases Participation in Clutch Joint Venture in China
PARIS, July 8 (ots/PRNewswire)
Valeo today announced that it had increased its participation in Nanjing Valeo Clutch Company (NVCC), its clutch systems joint venture in China, through a capital increase and a new partnership structure. This increases Valeo's control in the company and will facilitate the introduction of new technologies and new products. NVCC now has the necessary resources to address new markets in China and abroad.
Thierry Morin, Valeo Chairman and CEO commented "This move is part of our strategy to strengthen our presence in China in order to benefit from the enormous opportunities of the Chinese automotive market. In the past year we have increased our participation in four of our Chinese joint ventures which will enable us to introduce Valeo processes and methodologies as well as the technology innovations that this market demands."
NVCC was created in 1997 as a 50-50 joint venture with Nanjing Automotive Company and makes clutch systems for all types of vehicles. The new structure introduces a third partner: Valeo Pyeong Hwa, a joint venture between Valeo and Pyeong Hwa in South Korea. The new ownership structure of NVCC is 35% Valeo, 40% Valeo Pyeong Hwa and 25% Nanjing Automotive Corporation. Valeo now has a 55% interest in the company.
This transaction is subject to approval by the Chinese authorities and is expected to be completed by the end of August.
Valeo started in China in 1994 with the opening of its Beijing Head Office and the creation of joint ventures for wiper systems and climate control systems. Other joint ventures followed rapidly to bring the total to eight. Product lines manufactured are lighting systems, starters and alternators, wiper systems, security systems, heating, ventilation and air conditioning systems, motors and actuators and clutches. Valeo employs almost 3,000 people in China and serves all major passenger car and truck OEMs in the Chinese market.
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 129 plants, 65 R&D centres, 9 distribution centres and employs 68,700 people in 26 countries worldwide.
Contact:
Media contacts: Sophie Porte, Valeo Paris, +33-1-4055-3768,
sophie.porte@valeo.com