Hella and the Minth Group have agreed to establish a joint venture.
The company, Hella Minth Jiaxing Automotive Parts, will promote the development, production and marketing of radomes and illuminated logos.
Radomes are permeable covers for radar systems, which can be produced in designs according to customer requirements. Both companies are already active in the field and the joint venture will be funded by both partners in equal shares.
The JV has a production facility in Jiaxing and will have an international scope, with an initial focus on the Chinese market. Subject to approval of relevant antitrust authorities, the joint venture is scheduled to start operations in autumn 2020.
"With the increasing market penetration of radar-based driver assistance systems, the demand for radomes will also continue to rise," said managing director responsible for the Lighting Division at Hella, Frank Huber.
"Radomes offer vehicle manufacturers a wide range of possibilities for differentiation, since they can be staged in different ways, just like logos."
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By GlobalDataMinth will contribute its existing production capacities, including already existing series production, to the new joint venture.
The JV will be based in Jiaxing, China, at one of Minth's existing production facilities and will initially employ around 80 people.
The production capacities there will be continuously expanded within the next year to meet the expected growth of the radome business.