Recently, as a global leading supplier of automotive seats, roofing systems, door panels, instrument panels, and interior electronics products, Johnson Controls and Shanghai Yanfeng Johnson Controls Seating Co., Ltd. ("Yan Feng Johnson") have signed an agreement in Shanghai. Established a new joint venture company specializing in the production of seat components.
The new joint venture company will be named Shanghai Yanfeng Johnson Controls Seating Machinery Parts Co., Ltd., which will provide full-scale seat machinery for domestic automakers, including slides, recliners, high-profilers and lockup components. The combination of components and provide customers with a full range of services ranging from engineering design of individual components and related technologies to final product manufacturing.
Johnson Controls and Yanfeng Johnson’s existing seat assembly business and capabilities will be transferred and integrated into the new joint venture. At the same time, Johnson Controls will also successfully acquire two highly respected suppliers in the field of high-end seat metal skeletons and machine components in 2011, the C.Rob.Hammerstein Group (CRH) and Zibo's greatly enhanced innovative components. The product portfolio introduces new joint ventures.
“With the establishment of the new joint venture company, we will work hard to strengthen the vertical integration of the seat core machine component technology and provide our customers with a variety of components and parts that have the world's top technology and are manufactured in China.†Johnson Controls Professional Automotive Johannes Roters, Vice President of Interior Group and General Manager of China.
Roters further pointed out: "The establishment of the new joint venture will allow us to achieve steady and sustainable growth in the field of seat machinery parts and components, and will strive to become the leader in the metal skeleton and mechanical parts market in China in the next five years."
The new joint venture company still needs to be approved by the relevant regulatory authorities and meet other conditions for the closing of transactions. It is expected that the new joint venture will be put into operation in the second half of 2012. The financial details of the transaction have not been disclosed.
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