Kongsberg Automotive has acquired a further 24% stake in Shanghai Kongsberg Automotive Dong Feng Morse (SKADFM), bringing its total ownership in the business to 75%.
SKADFM, a joint venture company established in 1995, manufactures pedals and cable shifters to commercial vehicles produced in China.
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Kongsberg says it sees increased ownership in the venture as an opportunity for further growth in the Asian market, in particular as a supplier to Chinese truck manufacturers.
The component provider paid around EUR2.3m (US$3.1m) for the 24% stake.
“This is an exciting opportunity for us from a business perspective providing more room for bringing in expertise from other Kongsberg facilities into SKADFM,” said SVP Driver Control Systems, Asia, Bent Wessel-Aas.
“In excess of 200 employees are working in Driver Control Systems in China, and product lines within this business area will be integrated into SKADFM during the next year as a direct result of Kongsberg Automotive’s increased ownership.”
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By GlobalDataKongsberg’s Driver Control Systems business area designs, develops and manufactures man-to-machine interface control systems for commercial vehicles, including foot pedals, gearshift systems, clutch actuation, electronics and displays, advanced vehicle dynamics, and steering columns, while serving as a partner to customers in the on and off-highway and recreational vehicle segments worldwide.
Shanghai SKADFM is one of seven Kongsberg facilities in Asia and was established in 1995 as a 50/50 joint venture between DongFeng of China and Morse Cables.
Following Kongsberg’s acquisition of Teleflex in 2007, Kongsberg has held a 51% share majority in the venture.
With the recent transaction Kongsberg’s stake has now been increased to 75% in SKADFM.
DETC – a Nissan DongFeng company – still holds 25% of the shares in SKADFM.
