By Liz White, editor
Kitzingen, Germany - Seat foam maker F.S. Fehrer Automotive GmbH and Rába Automotive Holding plc have set up a joint venture in the foaming plant of Rába's Components Business Unit in Hungary.
Fehrer-Rába Automotive Ltd will start operating in October, 2009, in a venture which enables both partners to meet the requirements of the OEMs in terms of close-to-the-customer production and high quality. Kitzingen-based Fehrer is the majority holder with a 70 percent share, with Raba holding a 30 percent stake.
Over the next three years the partners plan to invest Euro 12 million in the joint venture, which specialises in foam production for the automotive industry. The development will raise the capacity at Rába's site in Mor by more than 250 percent, said a 4 March statement from Fehrer.
With better service for customers, the JV offers the possibility of gaining further business, Fehrer added. The joint venture will offer the complete value chain from design to production, using leading technologies, the company added.
Pointing out that the JV "combines leading Fehrer expertise in the complete value added chain with Rába's market closeness in Hungary" and nearby states, Dr Bernd Welzel, CEO of Fehrer, added. "Due to the growing importance of the East European automotive market, the commitment in Hungary is an important step for Fehrer."
As a family-owned company, Fehrer "needs to expand its position as specialist for vehicle interior components and to secure its competitiveness at home and abroad," Welzel continued.
PIC Fehrer ceo Dr Bernd Welzel.