France-based Faurecia has signed a new joint-venture agreement with Ningbo Huazhong Plastic Products Co., Ltd. to manufacture automotive exterior parts in China. Following the acquisition of Plastal activities in Germany and Spain in 2010, this international expansion will be the first joint-venture for the automotive exteriors activity of Faurecia in China.
The agreement signed between Faurecia and Ningbo Huazhong Plastic Products Co., Ltd. formalizes a 50/50 joint venture (Changchun Huaxiang Faurecia Automotive Plastic Components Co., Ltd.) based on the existing plant of Changchun Huaxiang Automotive Plastic Manufacture Co., Ltd. (Jilin province), a subsidiary of Ningbo Huazhong Plastic Products Co., Ltd. Faurecia will be in charge of the management of the new joint venture which will carry on Changchun Huaxiang’s current bumper systems business for FAW-VW‘s Volkswagen Magotan (the Chinese Passat) vehicle assembled at FAW-VW’s Changchun plant.
The joint-venture has recently been awarded additional automotive exteriors business from FAW-VW for the new Audi A6. The joint-venture will also capitalize on Faurecia’s expertise with Audi for bumper systems of the new Audi A6, produced in Germany.
All four Faurecia business groups&mdASh;automotive seating, emissions control technologies, interior systems and automotive exteriors—are strongly present in China where the Group employs more than 4,000 people with 17 plants and four R&D centers, serving both international and local Chinese automakers. In 2010, Faurecia entered into two other major agreements with on plans, materialized in 2010 with the announcement of two major agreements with Xuyang Group and Geely/Limin.