Hella says it will sell its existing relay business to Chinese manufacturer, Hongfa.
The transaction deals with the development and production activities of the two Hella companies located in Xiamen, China.
Go deeper with GlobalData
The sale is expected to close by the end of the year, with the price being around EUR10m (US$11). Around 280 employees will transfer to Hongfa.
“In the years to come, we want to concentrate even more strongly on the central future topics of the automotive industry,” said Hella CEO, Rolf Breidenbach.
“We see these topics as being primarily those of electric mobility and autonomous driving. So we are delighted to have found in Hongfa an experienced partner who will successfully further develop our relay business.”
For his part, Hongfa chairman, Guo Manjin added: “The acquisition of Hella’s relay business will enable us to further expand our market position as one of the world’s leading relay manufacturers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The transaction will enable us to secure the established market and product advantages of Hella in the area of relays.”
Hongfa is one of the world’s largest suppliers of relays. In 2018, the company achieved total sales of around EUR1.2bn (US$1.3bn)
