As part of its development strategy in Asia and especially China, Valeo has signed an agreement to strengthen its lighting alliance in China with Ichikoh.

Valeo and Ichikoh will merge their respective Chinese lighting operations in a new joint venture that will be owned 85% by Valeo and 15% by Ichikoh.

This move will strengthen Valeo's ties with Ichikoh and enhance the group's presence in China, where it intends to double its sales by 2015, Valeo said in a statement.

"This transaction is in line with Valeo's growth strategy in China and the rest of Asia, a region that represented 24% of our OEM sales in the first half of 2012 and should account for more than 30% of sales by 2015. China is expected to be our largest market in 2015", said Valeo CEO Jacques Aschenbroich.

The business will be integrated into the group's visibility systems business group.

Closing is subject to the usual regulatory approvals.

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