Hanon Systems has inked an agreement with Chinese company, Fawer Automotive Parts to establish its second joint venture with the business.
This follows the initial deal, announced by the company on 28 December last year.
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With the partnership, Hanon Systems holds a majority interest at 55% and Fawer the remaining 45%, on the basis of capital worth CNY155 (US$24m).
The new joint venture will operate using the name Fawer Hanon Automotive Components (FHAC) and initially produce electric compressors followed by fluid transport components as well as exhaust gas recirculation modules and components from a manufacturing site in Changchun, China.
The company expects to start production of electric compressors at the plant beginning in the second half of this year.
Hanon Systems first established its joint venture with Fawer in 1995. Today, the joint venture operates using the name Fawer Hanon Thermal Systems (FHTS), producing heating, ventilation and air conditioning (HVAC) modules and powertrain cooling components from a manufacturing site also located in Changchun.
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By GlobalData“Hanon Systems continues to expand its business and is investing in the China market based on the push for new energy vehicles and market potential for the eco-friendly automotive solutions we offer,” said Hanon Systems president and CEO, In-Young Lee.
“We are committed to supporting local China automakers, as well as global vehicle manufacturers operating in China.”
