Continental has established a joint venture with Huayu Automotive Systems Components (HASCO) to supply hydraulic brake systems in China. The company will be called Continental Brake Systems (Shanghai) Co., Ltd.
“With 51% share owned by Continental, this new joint venture will further strengthen the strategic position of Continental’s Chassis and Safety Division in Asia. This step allows the Business Unit Hydraulic Brake Systems to reinforce its role as a major supplier of hydraulic brake systems in China,” a statement said.
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The statement said that the joint venture’s product portfolio contains front and rear axle caliper, rear axle combined parking brake caliper, drum brakes, front and rear axle brake hoses, electronic parking brakes and electronic vacuum pump solutions.
Continental Brake Systems (Shanghai) Co. is located in Jiading and employs a workforce of approximately 160 people.
Jay Kunkel, president Asia, Continental, said: “This new joint venture is part of Continental’s ambitious growth plan in China. In this prosperous automotive market, we want to grow our business over-proportionally based on intensified localisation. We are convinced that we can achieve the successful and sustainable growth in China only by strengthening our local R&D, sales, and production competence. The new joint venture is also a continuation of our long-term strategic partnership and commitment to this key market. This goes back to 1994, when we already established Shanghai Automotive Brake Systems Co., Ltd., a significant joint venture with Shanghai Automotive Industry Corporation (SAIC).”
