Thermal management company, Modine Manufacturing, says it has entered into definitive agreements to form and assume a controlling share of a joint venture in China with privately-held Jiangsu Puxin Heat Exchange System.
Puxin is a manufacturer of stainless steel heat exchangers located in Yangzhou, China, around 200mi North-West of Shanghai.
The joint venture, which Modine expects to facilitate through one of its China subsidiaries, will expedite Modine’s introduction of stainless steel heat exchangers for the China light, medium and heavy-duty commercial vehicle markets.
Modine already produces these products in other regions. The deal is expected to close during the fourth quarter of fiscal 2016 and is subject to successful completion of customary closing conditions.
On closing, Puxin will contribute substantially all of its current business and assets to the new joint venture, which the parties expect to be called Modine Puxin Thermal System (Jiangsu). No other terms of the anticipated deal were disclosed.
“Establishing this joint venture with Puxin helps us expand our product offerings in China and more fully utilise assets we already have on the ground there,” said Modine VP Asia, Scott Bowser.
“In addition, it supports our objective of expanding our low-cost manufacturing footprint for producing advantaged heat exchangers for the vehicular markets, where Modine plays a global role.”