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.
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.”
Kongsberg’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.
