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Hanon Systems Finalizes Deal to Establish FHAC Joint Venture with FAWER
New JV focuses on delivering eco-friendly solutions to support new energy vehicles in China
DAEJEON, South Korea, Jan. 23, 2018 — Hanon Systems (KS: 018880), a global automotive supplier of thermal and energy management solutions, today announces it has signed the official agreement with leading Chinese automotive parts company, FAWER Automotive Parts Limited Company (FAWER), to establish its second joint venture with the company. This follows the initial agreement, which was announced by the company on Dec. 28.
Through this partnership, Hanon Systems holds majority interest at 55 percent and FAWER holds the remaining 45 percent on the basis of capital worth 155 million Yuan (approximately 25.4 billion KRW).
The new joint venture will operate under the name FAWER Hanon Automotive Components Co., Ltd. (FHAC) and initially produce electric compressors followed by fluid transport components, and exhaust gas recirculation modules and components from a manufacturing site in Changchun, China. The company expects to begin production of electric compressors at the plant beginning in the second half of 2018.
Hanon Systems has a long-standing history partnering with FAWER, having established its first joint venture in 1995. Today, this joint venture operates under the name FAWER Hanon Thermal Systems (FHTS) and produces heating, ventilation and air conditioning (HVAC) modules and powertrain cooling components from a manufacturing site also located in Changchun.
“Hanon Systems continues to expand its business and is investing in the China market based on the push for new energy vehicles and market potential for the eco-friendly automotive solutions we offer,” said In-Young Lee, president and chief executive officer of Hanon Systems. “We are committed to supporting local China automakers, as well as global vehicle manufacturers operating in China.”
A signing ceremony commemorating the new agreement was held Changchun on Jan. 22, which was attended by leadership from Hanon Systems and FAWER, as well as employees from FHTS.