Hella says it will sell its existing relay business to Chinese manufacturer, Hongfa.
The transaction deals with the development and production activities of the two Hella companies located in Xiamen, China.
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The sale is expected to close by the end of the year, with the price being around EUR10m (US$11). Around 280 employees will transfer to Hongfa.
“In the years to come, we want to concentrate even more strongly on the central future topics of the automotive industry,” said Hella CEO, Rolf Breidenbach.
“We see these topics as being primarily those of electric mobility and autonomous driving. So we are delighted to have found in Hongfa an experienced partner who will successfully further develop our relay business.”
For his part, Hongfa chairman, Guo Manjin added: “The acquisition of Hella’s relay business will enable us to further expand our market position as one of the world’s leading relay manufacturers.
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By GlobalData“The transaction will enable us to secure the established market and product advantages of Hella in the area of relays.”
Hongfa is one of the world’s largest suppliers of relays. In 2018, the company achieved total sales of around EUR1.2bn (US$1.3bn)
