China Automotive Systems (CAAS) has announced it has entered into a joint venture agreement with Hyoseong Electric to design, manufacture and sell electric motors for automotive electric power steering systems (“EPS”).
The joint venture, Hyoseong (Wuhan) Motion Mechatronics System (“HMMS”), is 51% owned by CAAS and 49% by Hyoseong Electric. A new production facility is being planned near CAAS’s headquarters in Wuhan with an expected annual capacity of 4.5m units upon completion. Total investment in HMMS will be CNY550m (US$80m) with CNY198m for the first phase of the production facility.
Founded in Busan, South Korea in 1973, Hyoseong Electric develops, manufactures, and sells direct current (DC) electric motors for automotive EPS, anti-lock braking systems (ABS), electric parking brakes (EPB) and HVAC blowers. Hyoseong Electric has become the world’s third largest producer of HVAC blower electric motors and the third largest electric motor supplier to automotive EPS products in Asia.
Mr Wu, chief executive officer of CAAS, commented: “With this joint venture, we will not only significantly increase in-sourcing capability, but also gain greater control over the technology, production and quality of motors for our EPS products, which are critical products for our future. Knowing the future of autonomous vehicles requires stronger steering systems to coordinate on-road navigation and vehicle manoeuvring, we are proactively strengthening our products to prepare for the paradigm shift in the foreseeable future. In addition, we look forward to broadening our product offerings and increasing our market shares.”