Tachi-S China, which is a wholly-owned subsidiary of Tachi-S has acquired 51% of the subscribed share capital of Hunan Chanfeng Namba Automotive Components, which owns Hunan Changfeng Automobile SOFA and started a new joint venture.
The name of the joint venture company will be Hunan Tachi-S Automotive Seating, (hereinafter the “New Company”) and commenced business under the new structure as of the board meeting of the New Company held on 16 April 2019.
Including the new company, Tachi-S conducts businesses relating to the development, production, and sale of automotive seats at 66 locations in 14 countries (as of April 2019) as a global seat system creator. This new joint venture is being conducted for the purpose of achieving further business expansion in China, which is positioned as an important region for Tachi-S, and further securing a business foundation in Changsha, Hunan, and it will contribute to the further expansion of automobile production in China. Global seat system creator: This means we are a company that is able to conduct seat development from the frame up, and engage in global production.
Outline of the New Company
- Business name: Hunan Tachi-S Automotive Seating.
- Representative: chairman Xi Zhi Xiong
- Location: Changsha Economic and Technological Development Zone, Hunan, China Business description: Manufacture and sale of automotive seats
- Main customer: GAC Mitsubishi Motors
- Production capacity: 300,000 units/year
- Start of production Production has already commenced as the predecessor of the New Company, Chanfeng Namba, was established in July 2012
- Sales: Approx. CNY500m (US$75m) (FY2018)
- Fiscal year: December
- Number of employees: 399 (as of April 16, 2019)
- Capital: CNY400m
- Equity participation: 51% by Tachi-S China (wholly-owned subsidiary of Tachi-S) 49% by Hunan Changfeng Automobile SOFA
- Effect on results: The effect of the New Company on the consolidated results of Tachi-S will be minor.