DAEJEON, South Korea, Oct. 11, 2017 /PRNewswire/ -- Global automotive supplier Hanon Systems (KS: 018880) is today announcing its Board of Directors has approved plans to establish a joint venture with China South Industries Group Corporation (CSGC) to support its growing business in the China market.
The new joint venture involves a direct partnership with Chongqing Jianshe Motorcycle Co. Ltd. and Chongqing Jianshe Mechanical & Electrical Equipment Co., which are two subsidiary companies of CSGC.
Changan Automobile is one of the top automotive groups in China that operates a number of vehicle brands and auto part subsidiaries through joint venture partnerships including Changan Ford, Changan Mazda and Changan Suzuki, in addition to its own brand.
Completion of the new joint venture is expected by the end of 2017, pending formal approval by the China government. To support the joint venture, the three partner companies will invest a combined total of 420 million Yuan (approximately $64 million) in registered capital. Hanon Systems will hold a 50 percent interest stake in the joint venture; Chongqing Jianshe Motorcycle Co. Ltd. will own 25.36 percent; and Chongqing Jianshe Mechanical and Electrical Equipment Co. will own the remaining 24.64 percent.
About Hanon Systems
Hanon Systems is a full-line supplier of automotive thermal and energy management solutions. Products include heating ventilation and air conditioning; powertrain cooling; compressors; fluid transport; and thermal and emissions solutions for conventional and electric, hybrid, fuel cell and autonomous vehicles. With 40 manufacturing and 18 engineering sites across 20 countries, the company employs more than 16,500 people.
