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Hanon Systems Signs Joint Venture Agreement in China
DAEJEON, Korea, Sept. 9, 2016 – Hanon Systems (KS: 018880), a leading global provider of automotive thermal solutions, has signed a joint venture agreement with Shandong Binzhou Bohai Piston Co. Ltd., to provide heating, ventilation and air conditioning (HVAC) assemblies to support a global automaker operating in China.
The new non-consolidated joint venture for Hanon Systems will operate under the name Beijing BHAP Hanon Systems Co., Ltd.
This joint venture is an extension of an existing joint venture relationship between the company and Beijing Automotive Industry Corp. (BAIC) that was established in 2002 under the name Hanon Systems (Beijing) Co., Ltd.
BAIC is the majority shareholder of Shandong Binzhou Bohai Piston Co. Ltd.
“We are pleased to extend our existing relationship with BAIC to establish this new joint venture,” said In-Young Lee, president and chief executive officer of Hanon Systems. “This strategic action is an important element in supporting our customer’s global vehicle platform and expands our capability to support the growth in China.”
Production is expected to begin in the first-quarter of 2018.