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Halla Visteon Climate Control Signs Agreement to Acquire Majority Equity in China Joint Venture

DAEJEON, Korea, June 3, 2014 — Halla Visteon Climate Control Corp. (KS: 018880) today announced the company has reached an agreement to acquire an ownership stake in Japan Climate Systems (JCS) Nanjing of 51 percent and become the majority shareholder. The cash transaction, valued at $6.4 million (6.5 billion Korean Won), is subject to adjustments and expected to be finished in the third quarter of 2014, after certain local regulatory and other processes are completed.

 

Established in 1987 as a joint venture, Japan Climate Systems (JCS) currently has an ownership structure evenly distributed among HVCC, Mazda and Panasonic. The company is based in Higashi-Hiroshima City, and has three wholly owned manufacturing facilities (Nanjing, China; and Hiroshima and Yamaguchi in Japan) and operations in Malaysia and Mexico. JCS Nanjing manufactures heat exchangers for automotive applications.

 

Acquiring this ownership stake in JCS Nanjing demonstrates HVCC’s commitment to address expansion and serve the growing number of customers in China. HVCC currently operates 11 manufacturing facilities (Beijing, Dalian, Jinan, Wuhu, Chongqing, Nanchang, Changchun, Chengdu, Foshan, Nanjing and Yancheng) and one engineering center (Shanghai) in China.  Spanning the country, these operations enable the company to support customers in respective regions in close proximity.

 

“We are pleased to have reached agreement to acquire the majority equity stake in JCS Nanjing,” said HVCC President and CEO YH Park. “This move leverages our longstanding relationship with JCS and strengthens our ability to deliver shareholder value by supporting automakers in the growing China market.”

  • 2014-06-05
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