Faurecia has signed a new joint venture agreement with Ningbo Huazhong Plastic Products to manufacture automotive exterior parts in China.
Following the acquisition of Plastal activities in Germany and Spain in 2010, this international expansion will be the first joint-venture for the automotive exteriors activity of Faurecia in China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The agreement signed between Faurecia and Ningbo Huazhong Plastic Products formalizes a 50/50 joint venture based on the existing plant of Changchun Huaxiang Automotive Plastic Manufacture (Jilin province), a subsidiary of Ningbo Huazhong Plastic Products. Faurecia will be in charge of the management of the new joint venture which will carry on Changchun Huaxiang’s current bumper systems business for FAW-VW’s Volkswagen Magotan (the Chinese Passat) vehicle assembled at FAW-VW’s Changchun plant.
Furthermore, the joint-venture has recently been awarded additional automotive exteriors business from FAW-VW for the new Audi A6. The joint-venture will also capitalize on Faurecia’s expertise with Audi for bumper systems of the new Audi A6, produced in Germany.
With currently 334 employees at the Changchun plant, Faurecia and its partner will bring their leading expertise in manufacturing high-quality bumper systems for German premium automakers, and introduce state-of-the-art industrial processes incl. the Faurecia Excellence System to meet the customer’s demand in both volume and quality.
All four Faurecia business groups – automotive seating, emissions control technologies, interior systems and automotive exteriors – are strongly present in China where the Group employs over 4,000 people with 17 plants and four R&D centers, serving both international and local Chinese automakers. The Group generated sales of EUR 670 million in China in 2009 and plans to reach EUR 1.7 billion sales by 2014, with Asia accounting for 15% of Group sales versus 7% in 2009.
