Automotive Lighting, the Magneti Marelli lighting subsidiary, and Changchun Fudi Equipment Technology Development Co. LTD. (FUDI), a Chinese investment company active in the automotive components industry, have signed an agreement to establish a joint venture (JV) company aimed at the production and sale of automotive lighting systems for the automotive market.

Magneti Marelli and FUDI are already partners in a JV manufacturing powertrain components since 2012.

According to the latest agreement, Automotive Lighting Reutlingen GmbH will own 60% of the share capital of the new company, Changchun Magneti Marelli Automotive Lighting System Co.,  Ltd., while FUDI will hold the remaining 40%.

The industrial facilities of the JV will be located in the Xin Xing Industrial Park of the Economic and Technological Development Zone of Changchun, Jilin Province and will be aimed at supplying carmakers in the North-East of China.

Automotive Lighting said the new JV will supply to companies covering the region north of the Yellow river, where leading Chinese automotive companies and international carmakers operating in China have located their plants. In particular, it said that German premium Original Equipment Manufacturers (OEMs) have a relevant presence in the area. 

The business scope of the JV will be to produce automotive lighting systems (headlamps and rear lamps) based on halogen, xenon and high-end LED technologies.

The plant will be set up within the first quarter of 2016, while the production is expected to start in the first quarter of 2017.

Magneti Marelli Automotive Lighting presence in the Chinese market started in 2005 with the opening of the first 100% owned plant in Wuhu. In order to follow the Chinese automotive market growth, two more plants were inaugurated: in February 2012 the second wholly-owned plant in  Foshan (South China), and in May 2013 the new plant in Xiaogan resulting from the JV with China South Industries. Moreover, Automotive Lighting Headquarters and Research Centre in China are based in Shanghai.