China: China Automotive Systems, Inc., a leading power steering components and systems supplier in China, announced that it has entered into a joint venture agreement with Hyoseong Electric Co. Ltd. (“Hyoseong Electric”) to design, manufacture and sell electric motors for automotive electric power steering systems (“EPS”).
The joint venture, Hyoseong (Wuhan) Motion Mechatronics System Co. Ltd. (“HMMS”), is 51% owned by CAAS and 49% by Hyoseong Electric. A new production facility is being planned near CAAS’s headquarters in Wuhan with an expected annual capacity of 4.5 million units upon completion. Total investment in HMMS will be RMB 550 million with RMB 198 million for the first phase of the production facility.
Founded in Busan, South Korea in 1973, Hyoseong Electric develops, manufactures, and sells direct current (DC) electric motors for automotive EPS, anti-lock braking systems (ABS), electric parking brakes (EPB) and HVAC blowers. Hyoseong Electric has become the world’s third largest producer of HVAC blower electric motors and the third largest electric motor supplier to automotive EPS products in Asia.
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, “With this joint venture, we will not only significantly increase in-sourcing capability, but also gain greater control over the technology, production and quality of motors for our EPS products, which are critical products for our future. Knowing the future of autonomous vehicles requires stronger steering systems to coordinate on-road navigation and vehicle maneuvering, we are proactively strengthening our products to prepare for the paradigm shift in the foreseeable future. In addition, we look forward to broadening our product offerings and increasing our market shares.”