Conti Acquires Chinese Auto Components Firm

4th September 2007 | 0 Comments
 

Continental AG’s Automotive Systems Division plans to further consolidate its position in China through the acquisition of Zhangjiagang Fugang Heli Electronics Co., Ltd. from China’s Fugang Group. Conti intends to integrate the operations of Fugang Heli, who manufactures cooling fan modules and window lift motors, into the division’s Electric Drives business unit upon regulatory approval of the purchase.

The Chinese company was founded in 2005 and employs approximately 250 staff at its headquarters in Zhangjiagang City, Jiangsu Province and two production facilities in Zhangjiagang and Changchun, Jilin Province. Last year Fugang Heli achieved sales of RMB 84 million (£5.526 million) and sold it products to both domestic and international vehicle manufacturers.

“With the acquisition of Fugang Heli, Continental Automotive Systems will enhance the local production capability in order to better meet the demand of OEMs in China as well as develop a new base for export into other regions in Asia based on a cost competitive manufacturing,” said Dr. Karl-Thomas Neumann, president Continental Automotive Systems and member of Continental AG’s Executive Board. “The deal will greatly help Continental Automotive Systems to strengthen its worldwide leading position in cooling fan modules at existing and emerging marketplaces, where our OEM customers are doing their business.”

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