Johnson Controls, a global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics, recently signed a contract with Shanghai Yanfeng Johnson Controls Seating Co., Ltd. ("YFJC") to set up a new seating mechanisms joint venture in Shanghai.
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. Johnson Controls 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.
"It will allow us to generate sustainable growth in seating mechanisms and become the market leader of metal and mechanisms in China within the next five years," added Roters.
Pending regulatory and other customary closing conditions, the new joint venture is expected to become operational in the second half of 2012. Financial terms regarding the transaction were not disclosed.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in over 150 countries. Our 162,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful.
About Johnson Controls Automotive Experience
Johnson Controls is a global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics. We support all major automakers in the differentiation of their vehicles through our products, technologies and advanced manufacturing capabilities. With 240 locations worldwide, we are where our customers need us to be. Consumers have enjoyed the comfort and style of our products, from single components to complete interiors. With our global capability we supply approximately 50 million cars per year.
About Yanfeng Johnson Controls ("YFJC"):
Yanfeng Johnson Controls is the market leader in automotive seating industry serving almost all automakers in China. Our 13,000 employees create innovative seating system, including metal and mechanisms, foam and trim, headrest and complete seat assembly, as well as overhead solutions. With more than 35 footprints around China, we're close to our customers. We adopt advanced operation and management systems, pursue lean manufacturing, always take the quality as the core and innovation as the driving force, and continually exceed our customers' increasing expectations.For more information, please contact:
Ulrich Andree | Johnson Controls GmbH
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