Valeo takes full control of HVAC jv in China
Global automotive component maker Valeo has taken full control of a joint venture facility in China that makes compressors for automotive heating, ventilation and cooling systems (HVAC).
In the fourth quarter of 2009, the French supplier firm increased its stake in FAW Valeo Climate Control Systems Co. in Changchun, China from 60 to 100 percent. Its former partner in the joint venture was Fawer Automotive Parts Company Ltd., a subsidiary of China FAW Group Corporation. The unit will now be called Valeo Compressor Changchun Co.
Originally established in 2005, the 7200 square meter plant has an annual capacity to make 1.2 million compressors which serve both the local and export markets, says the company website.
Valeo's sales in China are expected to have jumped 25 percent in 2009 compared to a year earlier, says the company. Total China sales for Valeo products in China are expected to have exceeded 400 million euros (3.9 billion yuan) in 2009. In China Valeo makes a range of products including engine cooling systems, lighting systems, clutches and electric motors.
The French supplier group has 15 production facilities in China spread across Shanghai, Wuhan, Nanjing, Guangzhou, and Changchun. It employs 3995 people in China.
