Automotive Lighting maker, the Magneti Marelli Company and Chinese investment company Changchun Fudi Equipment Technology Development (FUDI) have signed an agreement to establish a joint venture (JV) company. The JV is aimed at the production and sale of automotive lighting systems for the automotive market. Magneti Marelli and FUDI are already partners in a JV that manufactures power-train components since 2012.
According to the agreement, Automotive Lighting Reutlingen GmbH will own 60% of the share capital of the new company, Changchun Magneti Marelli Automotive Lighting System, while FUDI will hold the remaining 40%. The industrial facilities of the JV will be located in the Xin Xing industrial park of the economic and technological development zone of Changchun, Jilin province and will be aimed at supplying car makers in the North-East of China
The business scope of the JV will be to produce automotive lighting systems (headlamps and rear lamps) based on halogen, xenon and high-end LED technologies. The plant will be set up within the first quarter of 2016, while the production is expected to start in the first quarter of 2017. Built over a land area of 48,000 square meters, the plant with a total surface of 23,300 square meters will employ a workforce of about 800 employees at its peak volume.
“The new JV with Fudi aimed to be set in the northern part of the country – stated Ermanno Ferrari, CEO of Automotive Lighting – allows Automotive Lighting to have the “ideal” footprint in a key country for automotive like China, covering all the strategic areas in which the most important carmakers are located with their facilities. In fact our objective is being logistically and technically near them, in order to support their business growth in the best way possible.”
“This new factory in Changchun represents our fourth Lighting plant in the country and marks an important milestone in the expansion of Automotive Lighting in China. This will allow us to support in a better way our strategic customers located in this region.” Said Sylvain Dubois, Country Manager, Magneti Marelli China.