Magneti Marelli and Changchun Fudi Equipment Technology Development Co. LTD. (FUDI), Chinese manufacturer of automotive components and systems, have signed an agreement to set up a Joint Venture aimed at the production of automobile components, specifically powertrain systems.
According to the agreements, Magneti Marelli will own 51% of the capital of the new company called Changchun Magneti Marelli Powertrain Components Co. Ltd., while the Chinese partner will hold the remaining 49%. An initial investment of € 14 million will be made.
The industrial facilities of the new JV will be located in Changchun, in north-eastern China, one of the strategic areas for the automotive sector in that country, where leading Chinese companies in the sector also have their plants. In particular, the JV will settle in the economic and technological development area of Chaoyang, where Fudi can count on a longstanding industrial presence.
The JV will specifically deal with the production of intake manifolds, throttle bodies, fuel rails and air/fuel modules for automotive applications, aimed primarily at Chinese carmakers operating in the area, such as, for example, FAW.
Production is expected to start at the end of the year, and once the JV is operating at full speed it will reach a maximum production capacity of approximately 1.7 million intake manifolds and 1.2 million throttle bodies a year. Built over a surface area of 4000 square meters, the plant will employ a workforce of about 300 employees.
“As a sign of the continuity of our commitment in China – stated Eugenio Razelli, CEO of Magneti Marelli – this JV further expands our presence in the territory, which now also includes a production facility in the north-eastern region of the country, a strategic area due to the presence of one of the largest Chinese carmakers”.
Magneti Marelli has been operating in China since 1996 with production plants and research centres in the areas of Shanghai (headquarters and Powertrain, Exhaust Systems and Lighting, in addition to the JV in Jiading with SAGW dedicated to the production of hydraulic components for the Freechoice™ robotised transmission, Wuhu (Lighting and Powertrain), Guangzhou (Electronic Systems) and Hangzhou (shock absorbers in JV with Wanxiang Qianchao Company).