UK-headquartered Schefenacker has formed a joint venture with Ningbo Huaxiang Electronic Company to produce exterior mirrors and other automotive components in China.
Construction has started at a plant in the province of Zhejiang, near Shanghai. Schefenacker said operations are scheduled to start in early summer 2008 with production of exterior mirrors and fuel filler modules for local vehicle programmes of Volkswagen and General Motors.
The new joint venture company, owned 50/50 by the partners, is called Ningbo Schefenacker Huaxiang Automotive Mirror Co. Its 15,000 sq metre plant will house a robotic spray application paint shop as well as a fleet of injection moulding machines.
Schefenacker already has two Chinese assembly plants, located in Bejing and Yancheng, moulding automotive components for Hyundai and Kia. But the new deal formalises co-operation with Ningbo Huaxiang stretching back to 2005, when production of exterior mirrors for the current Volkswagen Passat produced in Shanghai was started.
Ulrich Bruhnke, chief executive of Schefenacker, said: “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.”
General manager of the joint venture company, Rui Wang, said the quick response from customers said the joint venture was appreciated. “Our plant is prepared for a quick and significant extension of capacities,” he said.
Both partners have committed a capital contribution of around ˆ10m over the next two years. Schefenacker’s total cash contribution will be around ˆ3.3m.
A restructuring earlier this year resulted in Schefenacker spinning off its lighting business from its door mirrors business (PRW.com 14 February 2007).
