Nanterre, France - French automotive supplier Faurecia is to extend its activities in China into making complete seats, and also create two joint ventures in interior systems and in acoustic parts and carpets.
These activities follow from agreements Faurecia recently signed with the Municipality of Changchun, in Jilin Province, and with automotive supplier Xuyang Group, in which Faurecia holds a majority stake.
China is "a strategic area" for Faurecia, the group pointed out. It has 15 plants and three R&D centres, with some 3400 employees, and will achieve 2009 sales of Euro 600 million ($872 million), a rise of 35 percent versus 2008.
The agreement with Changchun, will allow Faurecia to take a stake in the capital of Xuyang Group, and be its strategic shareholder. Xuyang is one of the main suppliers to China's first car manufacturer, the FAW Group, and its international affiliates, which include FAW-VW (Audi and Volkswagen).
Faurecia and Xuyang Group are to extend their activities with FAW Group in three strategic areas:
• The Changchun Faurecia Xuyang Automotive Seat Co. Ltd joint-venture (CFXAS),
will extend its activity to complete seats. Until now this JV, set up in 2001 and held 60:40 by Faurecia and Xuyang, made only seat frames;
• Two new joint-ventures will be created:
-- in interior systems, building on Faurecia's existing Changchun plant;
-- in acoustic modules and floor carpets, building on existing Xuyang plants.
Faurecia plans to finalise these agreements during the first quarter of 2010.
Changchun City is one of the main automotive production centres in China. It is the site of FAW and its joint-ventures with Volkswagen, Toyota and GM, producing some 1.5 million vehicles in 2009, with an objective of 2 million vehicles per year from 2011 and 3 million per year in five years time, Faurecia noted.