Haldex and VIE ink China CV brake joint venture
Haldex and Zhejiang VIE Science and Technology have unveiled a joint venture to design, develop, produce, and sell electromechanical brake systems for commercial vehicles with an initial focus on the electric bus market in China.
Electromechanical brakes is expected to be a fast-growing niche, especially supported by recent strong development of the electric bus segment in the Chinese market.
Chinese demand for electrical buses is forecast to grow by 47% between 2015 and 2020, to more than 141,000 vehicles produced by 2020. The new technology will offer customers a brake system layout independent from pneumatic energy, with reduction of noise and improved performance, notes a Haldex statement.
Under the agreement, Haldex and VIE will set up a green field joint venture with the parties owning 50% each.
The joint venture will operate under the name Haldex VIE (China) Electro Mechanical Brake Systems and be based in Shanghai, China.
Both parties will contribute with the necessary financial and engineering resources to bring the electromechanical brake system to the commercial vehicle market. The initial focus will be on the electrical bus market in China and the JV is expecting revenue from the year 2020 onwards.
"Haldex is a company with a long history in the global commercial vehicle industry, providing reliable and innovative solutions improving areas such as safety," said VIE chairman, Xi-Liang.
"Haldex has unrivalled expertise when it comes to R&D for electromechanical braking systems for commercial vehicles. VIE is a leading company in China providing R&D, manufacturing and marketing for commercial vehicle braking systems.
"The establishment of this joint venture will improve the competitive strength of both companies in China and the rest of the world. This is especially true for safety technology within the emerging market of electric commercial vehicles, which will guide the innovative development of electromechanical braking systems globally."
The joint venture has the right to distribute and sell the products developed by the joint venture in Asia Pacific.
The joint venture is subject to regulatory approvals