Standard Motor Products has agreed a joint venture with Techstrong to establish a new automotive sensor manufacturing business in Thailand.

The arrangement creates Techstrong Electronics (Thailand) Company, known as SMP Techstrong, with both parties holding equal ownership.

As part of the deal, SMP is taking a 50% share in an existing supplier, a step that it said broadens its production footprint in several important sensor segments from the outset.

According to the company, the partnership will give it closer involvement in product engineering, manufacturing standards and supply performance, while also adding capacity to support its sensor portfolio.

SMP said the venture fits with its long-running strategy of maintaining manufacturing operations in core product groups to support broad product availability and consistent standards for its distribution network.

The Thailand-based operation also forms part of the company’s wider effort to diversify and reinforce its international supply chain.

By adding a manufacturing base in Thailand, SMP is seeking to lessen its dependence on China while retaining a presence in a major regional production market.

The company said this should help lower supply risk and strengthen resilience across its sourcing network.

SMP vice president of Asian operations Hap Acee said: “This joint venture represents an important step forward in our commitment to our customers. By investing in manufacturing and deepening our partnership with Techstrong, we are strengthening our ability to deliver the quality, coverage and value that our customers expect from SMP.”

SMP supplies replacement components to the automotive aftermarket and also provides engineered products for vehicle and equipment manufacturers in a range of markets outside the aftermarket.

Its customer base mainly includes retailers, warehouse distributors, original equipment manufacturers and original equipment service parts operations across the US, Canada, Europe, Asia, Mexico and other countries in Latin America.