Company News, 2003-10-13, 02:00 AM
ThyssenKrupp Automotive expands activities in Asia
Further joint venture established in China to produce steering columns
ThyssenKrupp Presta, a subsidiary of ThyssenKrupp Automotive AG, Bochum/Germany, and FAWER Automotive Changchun Corporation, Changchun/China, a subsidiary of First Automobile Works (FAW) - China`s largest auto manufacturer with an annual output of over 850,000 vehicles - have signed a joint venture agreement to produce car and truck steering columns. The new company will be called ThyssenKrupp Presta Fawer (Changchun) Co. Ltd. and will take over FAWER`s current steering column production activities in Changchun. Key accounts at present include FAW JIEFANG Automotive, FAW-VW Automotive, FAW CAR and SAIC CHERRY Automobile. Located in Jilin Province in the north of China, Changchun has some 7 million inhabitants and is a major center of the Chinese auto industry.
ThyssenKrupp Presta - a global leader in the manufacture of steering columns, steering systems and assembled camshafts - is expanding its steering column production activities in China. Back in November 2000, the Liechtenstein-based company formed a joint venture with HuiZhong Automotive Shanghai - part of the Chinese SAIC group - to produce car steering columns in Shanghai. ThyssenKrupp Presta HuiZhong will turn out some 350,000 steering columns in 2003, rising to around 400,000 in 2004, while ThyssenKrupp Presta Fawer plans to produce approx. 320,000 columns in 2004. ThyssenKrupp Presta holds a 60 percent interest in each of these joint venture companies.
The finalization of the joint venture with FAWER will enable ThyssenKrupp Presta to produce around one million steering columns in China from 2005. In the medium term, annual output could even be extended to two or three million.
The expansion of its Chinese steering column production operations is a further milestone in ThyssenKrupp Automotive`s steady growth path. According to Dr.-Ing. Jürgen Harnisch, member of the Executive Board of ThyssenKrupp AG and CEO of ThyssenKrupp Automotive, "ThyssenKrupp Automotive has set itself ambitious targets to secure its future viability and strengthen its international market position. One of our strategic objectives is to expand our presence in Asia, in particular China and Japan including the transplants in the USA and Europe. The new joint venture strengthens our position in one of the world`s biggest growth markets."
ThyssenKrupp Automotive is one of the world`s largest automotive supply companies. As vehicles and systems grow in complexity, the expertise of a highly qualified systems supplier, development partner and materials specialist like ThyssenKrupp Automotive is in greater demand than ever. Operating from more than 120 production locations in 17 countries, the company manufactures customized components, modules and systems for body, chassis and powertrain requirements in all the major markets. ThyssenKrupp Automotive holds leading positions in body parts, engine components such as crankshafts and assembled camshafts, steering columns and steering systems, air springs and damping systems, axles and complete vehicles.
Already since the merger between Thyssen and Krupp in 1999, companies with sales of 3.5 billion Euros have been divested and businesses with sales of 5.5 billion Euros have been acquired. In the framework of the proposed portfolio optimization, further disposals of non-strategic holdings and selective strategic acquisitions are planned. Through organic growth and selective strategic acquisitions, ThyssenKrupp aims to achieve total sales of 40 to 46 billion Euros in the medium term.
ThyssenKrupp Automotive AG