Tyre and car parts maker Continental said on Thursday it was combining two of its Chinese joint ventures for truck brake systems to focus growth in the Chinese market, according to Reuters.

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The report said Shanghai Automotive Brake Systems Co., Ltd. (SABS) and Shanghai Automotive Brake Actuation Co. Ltd. (SABA) would join under the SABS name, at whose location it would also work.


According to Reuters, Continental said it had signed a contract with its joint-venture partner Shanghai Automotive Industry Corp. about the move.


Continental AG deputy chief executive Wolfgang Ziebart said in a statement cited by the news agency that the move would strengthen the German group’s position in the market ahead of an offensive from Japanese car makers.


He also said Continental was still seeking a joint-venture partner in the tyre business in China, Reuters added.

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