Chinese company sets up jv with Chery to make wiper switches
Chinese electric motor and switches manufacturer Changhui Group has this year won significant orders from Chery Automobile Co. and Jianghui Automobile Co. This has prompted the supplier to expand its product line-up into wiper motors and open a new joint venture facility in Wuhu, Anhui province.
The new 20,000 square meter Wuhu Auto Electric Appliance Co. will produce switches used in steering systems and wiper switches and motors. "We have a new factory in Wuhu, Anhui -- a joint venture with Chery," says Bruce Sun, international trade manager at Changhui Shanghai Science and Technology Group Co. Details of the exact percentages of the joint venture ownership were not divulged.
By 2012 the single Wuhu plant is expected to generate sales of 100 million yuan ($14.6 million), said executives of the company speaking to Automotive News China at the Automechanika trade fair in Shanghai. The plant will supply Anhui based automakers Chery and JAC, making switches and motors for passenger and commercial vehicles, and trucks for models to be launched next year.
Changhui Group also exports ignition switches, EGR valves and compression switches to Volkswagen AG in Germany. In 2008 Changhui exported over 40,000 switches to Volkswagen. "2009 is a little down due to the global financial crisis," says Bruce Sun, international trade manager at Changhui Shanghai.
In 2008 the group had sales revenue of 160 million yuan ($23.4 million). This year the company forecasts sales revenue of 200 million yuan ($29.2 million), says Sun.
Upon reaching full capacity in 2012, the Wuhu plant is expected to generate revenue of 100 million yuan($14.6 million).
Changhui Group has 4 R&D facilities across China, with over 230 engineers and over 20 plants. Its customers in China include Chery, Great Wall, Toyota and Shanghai Volkswagen.
