Amberg, Germany — Grammer and Shaanxi Automobile Group, the fourth largest heavy truck manufacturer in China, have agreed to form a joint venture for truck seats.
Grammer takes 90% of chinese truck seating jv
The joint venture will make a wide range of mechanical and air suspension seats for driver and front passengers at the Fuping industrial park, Grammer said. It adds that most production will be used in Shaaxi's heavy trucks. Shaanxi makes around 100,000 heavy trucks for Chinese and Asian, African and Latin American markets.
Grammer adds that the Fuping production site is physically close to important customers and will help to reduce production and logistics costs in China.
"The new joint venture with Shaanxi Automobile Group, is an important strategic milestone in our global growth strategy. Working with a leading local OEM secures our position in our key Chinese market and will significantly advance our planned strong growth in Asia,"said Hartmut Muller, ceo of Grammer.
This is now Grammer's third production site in China and, the firm said it now has "an excellent platform to further expand its customer base in China and to achieve greater market penetration in Asia. Before the joint venture, Grammer said 15% come from six locations serving the passenger and commercial vehicle segment in China.