Jan. 6, 2012 (China Knowledge) - China Automotive Systems Inc<CAAS
>, a leading power steering components and systems supplier in China, announced yesterday that it will set up a joint venture in Chongqing
with SAIC-IVECO Hongyan Co.
The JV, which is named Chongqing
Henglong Hongyan Power Steering Systems Co Ltd and has a registered capital of RMB 60 million, will have an annual output capacity of 200,000 power steering units for commercial vehicles in China.
Nasdaq-listed China Automotive Systems will hold a 70% stake in the JV, while the remaining 30% stakes will be owned by Chongqing-based
SAIC-IVECO Hongyan, which principally produces heavy-duty trucks and specialty trucks with a manufacturing capacity of 70,000 units per year.
Chen Hanlin, Chairman of China Automotive Systems, said another plant in Beijing
currently has an annual output capacity of 500,000 steering units.
At present, the power steering parts maker mainly offers four separate series of power steering with a combined annual output capacity of more than 3.5 million sets, sources reported.