Hanon Systems a global automotive supplier of thermal and energy management solutions, has announced that it has entered into an agreement to establish a second joint venture with Fawer Automotive Parts Limited Company, a leading Chinese automotive components company.

The new joint venture will operate under the name HFAC (Hanon Fawer Automotive Component) and produce electric compressors, fluid transport components, and exhaust gas recirculation modules and components from a manufacturing site in Changchun, China. In terms of equity structure, Hanon Systems holds majority interest at 55% and Fawer holds the remaining 45% on the basis of capital worth CNY155m (approximately KRW25.4bn – US$23m).

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This agreement marks the second partnership between the two companies following establishment of FHTS (Fawer Hanon Thermal Systems) in 1995. As part of the new alliance in HFAC, both parties agree to change the current 50:50 equity structure in FHTS to a 55% ownership by Fawer.

“China continues to be an important market for Hanon Systems in terms of growth in support of automakers operating in the local market,” said In-Young Lee, president and chief executive officer of Hanon Systems. “We are pleased to build on the positive relationship with Fawer to establish this new joint venture to bolster our ability to serve our customers in China with innovative, efficient and eco-friendly solutions.”

HFAC is one of several joint venture partnerships for Hanon Systems in China, which are focused on ‘enhancing shareholder value and supporting the company’s growing global business as a leader in automotive thermal and energy management solutions’.

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