Halla Visteon Climate Control is to take a 51% stake in Japan Climate Systems (JCS) Nanjing and become the majority shareholder.
The cash transaction of US$6.4m (KRW6.5bn is expected to be completed in the third quarter of 2014.
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Established in 1987 as a joint venture, JCS currently has an ownership structure evenly distributed among HVCC, Mazda and Panasonic. The company is based in Higashi-Hiroshima City, and has three wholly owned factories (Nanjing, China; and Hiroshima and Yamaguchi in Japan) plus operations in Malaysia and Mexico. JCS Nanjing manufactures automotive heat exchangers.
“Acquiring this ownership stake in JCS Nanjing demonstrates HVCC’s commitment to address expansion and serve the growing number of customers in China,” the Visteon affiliate said.
HVCC currently operates 11 factories (Beijing, Dalian, Jinan, Wuhu, Chongqing, Nanchang, Changchun, Chengdu, Foshan, Nanjing and Yancheng) and one engineering centre (Shanghai) in China.
“We are pleased to have reached an agreement to acquire the majority equity stake in JCS Nanjing,” said HVCC president and CEO YH Park.
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By GlobalData“This move leverages our longstanding relationship with JCS and strengthens our ability to deliver shareholder value by supporting automakers in the growing China market.”
