Huf Group and Chinese automotive supplier, Baolong have signed a letter of intent to establish a tyre pressure monitoring systems (TPMS) joint venture from 1 January next year.
The JV consists of the two divisions, OE and IAM (Independent After Market) with around 224 employees and locations in Germany, the US and China. Baolong will contribute its tyre pressure monitoring system division with locations in Shanghai and Wuhan as well as around 400 employees.
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Huf develops and produces products and solutions for car and truck manufacturers, while Baolong is a stock market listed automotive supplier headquartered in Shanghai.
Baolong manufactures tyre valves, exhaust pipes and TPMS as well as other products with several production bases, R&D centres or sale centres in China, the US, Germany, Poland and Japan among others.
Charles Zhang, President of Baolong and Lars Placke, SVP and head of Business Unit Tyre Monitoring & Aftersales Solutions at the Huf Group, will lead the joint venture as chairmen of a five-member board.
In addition, there will be a four-man executive team with Miller Feng as CEO (Baolong), Axel Hummel as CFO (Huf), Ralf Kessler as CTO (Huf) and Arno Fuchs as COO (Huf).
Baolong shares will account for 55% in the JV with Huf holding the other 45%.
