Swiss automotive supplier Autoneum has agreed to acquire a 70% stake in Jiangsu Huanyu Group, a Chinese automotive supplier specialised  in acoustic and thermal management.

The acquisition, valued at SFr75m ($84.8m), is expected to close in March 2025, subject to regulatory approval.

The transaction will proceed in two phases: Phase one entails the purchase of a 70% stake, while phase two grants a call option for the remaining 30% in 2028.

Autoneum expects the deal to enhance its presence in China's automotive market, which produces around 30 million light vehicles annually, with production expected to grow to 32.4 million cars by 2030.

It also supports Autoneum’s strategic initiative to expand its truck business in China.

This expansion is expected to increase Autoneum's annual revenue and broaden its customer base in the region.

Jiangsu Huanyu Group, established in 2001, operates 14 production facilities and employs approximately 1,100 people.

The company supplies lightweight components for both light and commercial vehicles in China. Its product portfolio includes vehicle interior components such as carpets, headliners, and insulation for various vehicle parts.

In 2023, Jiangsu Huanyu Group generated revenue of around SFr130m.

Autoneum CEO Eelco Spoelder said: “Jiangsu Huanyu Group has broad customer access to the largest local vehicle manufacturers in China. With its plants in the key automotive hubs in China, the company is an excellent strategic addition to Autoneum and brings us a significant step closer to our medium-term target of generating 20% of Group revenue in Asia.

“The acquisition of the majority stake in Jiangsu Huanyu Group will strengthen our position in China, the world’s largest and fastest-growing market, both in the light and commercial vehicle business.

“This step not only gives us access to an established customer base in China, but also allows us to further expand our presence and gain strong influence in the booming automotive hubs of Anhui and Shaanxi.”