Shanghai, China -- Johnson Controls has signed a contract with Shanghai Yanfeng Johnson Controls Seating Co. Ltd (YFJC) to set up a new seating mechanisms joint venture in Shanghai. Financial details were not disclosed.
The new joint venture will be called Johnson Controls Yanfeng Mechanisms Co. Ltd (JCYM). It will supply major automakers in China with a comprehensive seating mechanisms portfolio, including tracks, recliners, adjusters and latches, as well as full service capabilities - from design and engineering of individual mechanisms and related technologies to manufacturing the final products.
All current seating mechanisms businesses and capabilities of YFJC and Johnson Controls will be transferred and integrated into this new joint venture, JCI said in a 30 May news release.
Johnson Controls said it will also bring into the new joint venture its innovative mechanisms product portfolio which was significantly enhanced after acquiring two "highly respected" suppliers of premium seating metal structures and mechanisms in 2011 -- C. Rob. Hammerstein Group (CRH) and Keiper.
"With the establishment of this new joint venture, we aim to reinforce vertical integration in core seating mechanisms technologies and provide our customers with state-of-the-art products manufactured locally in China," said Johannes Roters, group vice president and general manager China, Johnson Controls Automotive Experience.
The company said it aims to become the market leader of metal and mechanisms in China within the next five years.
The new joint venture is expected to become operational in the second half of 2012 pending regulatory and other customary closing conditions.