VELBERT, Germany — German automotive supplier Huf Hülsbeck & Fürst is planning a joint venture with Chinese vehicle components maker Shanghai Baolong Automotive Corp. for the development and production of tire pressure monitoring systems (TPMS).
The parties expect to sign the official contract in September and the new company, majority-owned (55 percent) by Baolong, will launch in January 2019, the companies said.
The companies said the aim of the venture is to accelerate growth through joint activities in development, purchasing, production and sales in order to achieve a leading market position.
The venture will combine Shanghai-based Baolong's existing TPMS unit with 400 employees in Shanghai and Wuhan with Huf's 200-plus employees in Germany, the U.S. and China, covering both original equipment and independent aftermarket divisions.
Huf's TPMS products are sold under the IntelliSens brand.
"With Baolong we have the ideal partner because our markets complement each other perfectly," Lars Placke, senior vice president of Huf Group and co-chair of the joint venture, said. "[This] will bring us even closer to our customers."
The other co-chair and Baolong President Charles Zhang added: "Our clear goal is to be on the list of world's Top three suppliers in this area."
Set up in 1997, Baolong claims to be a leader in China's TPMS market and also in North America's after market segment.