Knorr-Bremse Commercial Vehicle Systems Expanding In China
Knorr-Bremse Asia Pacific (Holding) Ltd. in Hong Kong and China's Dongfeng Electronic & Technology Co., Ltd. (DETC) have signed an agreement for the formation of the joint venture company, Knorr-Bremse DETC Commercial Vehicle Braking Technology Co., Ltd.. The realization of the joint venture is subject to the approval of the relevant anti-trust authorities.
The new company, in which Knorr-Bremse holds a 51% stake, will be based in Shiyan, Hubei province, and will manufacture components for complete braking systems, such as air supply, brake control and wheel end segments, including ABS anti-lock brakes, air disc brakes and brake valves, as well as transmission and exhaust brake components for medium- and heavy-duty trucks.
“Dongfeng and Knorr-Bremse complement one another to perfection and are bundling their comprehensive product and market expertise in order to best meet customer requirements in the Chinese market, which is not only growing but also making technological progress,” said Dr. Stephan Weng, member of the executive boards of Knorr-Bremse Commercial Vehicle Systems and of Knorr-Bremse Asia Pacific (Holding) Ltd. “To ensure high quality standards, the joint venture will be relying on technology that has already been proven worldwide and on the introduction of innovative production and logistics processes.
"Our aim is to jointly pursue the advanced development of braking technologies for the local market. In the medium-term we want to grow the joint venture into one of the leading suppliers to the commercial vehicle industry in the People’s Republic of China.”
Listed on the Shanghai stock exchange, Dongfeng Electronic & Technology Co., Ltd. (DETC) is a subsidiary of Dongfeng Motor Group Co., Ltd. (DFG), which holds a 55% stake in Dongfeng Commercial Vehicle (DFCV), a joint venture with Volvo.
Today, the Knorr-Bremse Group, including joint ventures, maintains 13 production plants in China for both its divisions (Commercial Vehicle Systems and Rail Vehicle Systems) with a total workforce of more than 3500 employees and sales over €750 million in 2013 .