Continental in Chinese brake-systems joint venture

Shanghai, China - Continental AG, the international automotive industry supplier, has established a joint venture named Continental Brake Systems (Shanghai) Co., Ltd.

Located in Jiading, the venture is 51-percent owned by the German firm, with Huayu Automotive Systems Components (Hasco) owning the balance. It employs a workforce of about 160 people including all supporting functions, from R&D to finance. Manufacturing facilities are Shanghai Automotive Brake Systems Co., Ltd, with about 900 employees and Continental Automotive Systems Changshu Co., Ltd with a further 1000 employees.

"This new joint venture will further strengthen the strategic position of Continental's Chassis and Safety Division in Asia," said Continental in a 26 Oct press announcemeent.

The product portfolio includes front and rear axle brake hoses as well as all components of automotive braking systems. "This step allows the business unit Hydraulic Brake Systems to reinforce its role as a major supplier ... in China, the German firm said.

Martin Kueppers, vice president, hydraulic bake systems Asia, chassis & safety division, Continental commented: “Shanghai/Jiading has become one of the key production and R&D locations of Continental's chassis & safety division here in China.

"To reinforce our competitiveness and increase the market share of HBS products in the Chinese market, it is essential for us to keep concentrating on R&D, innovative technology, and customised solutions," he added.

Jay Kunkel, president Asia, for Continental, added: "This new joint venture is part of Continental's ambitious growth plan in China. In this prosperous automotive market, we want to grow our business over-proportionally based on intensified localisation.

Hasco sales were RMB 24.7 billion in 2009 and it has more than 25 000 employees. It is 60.1 percent owned by Shanghai Automotive Industry Corp, with the rest being held by the public. SAIC is a neutral, international, and Tier-0 (modular and system) supplier for OEMs all over China, and potentially OEMs in overseas market. HASCO is now mainly serving passenger car market, but is exploring the commercial vehicle and after-sales markets.