Hanover, Germany--Continental AG is setting up a joint venture in China to make anti-vibration components for Chinese vehicle makers, expanding its growing presence in that nation.
ContiTech Vibration Control GmbH and Chinese automotive supplier Ningbo Jiebao in Ninghai, China, have agreed to form a joint venture, with ContiTech holding 60-percent control.
The deal complements the existing ContiTech-Jiebao Power Transmission Systems Ltd. joint venture, and the partners intend to operate it as a self-contained business in that venture's factory in Ninghai, about 95 miles south of Shanghai. The partners will invest $1.9 million over two years to get the venture running.
Initially, the venture will make spring strut bearings for Volkswagen AG operations in Shanghai and Changchun and seals for the automotive supplier GKN PLC By 2006 the venture will expand into engine and suspension mounts, according to Michael Pfenning, project director for the joint venture. Production will be geared strictly to the local market.
ContiTech-Jiebao makes multiple V-rib and rubber timing belts at Ninghai with 130 employees.
Press release from Continental