© grzegorz kula dreamstime.com Electronics Production | January 24, 2013
Kongsberg Automotive ups stake in Chinese JV
Kongsberg Automotive (KA) has acquired a further 24 percent stake in Shanghai Kongsberg Automotive Dong Feng Morse Ltd (SKADFM), bringing its total ownership in the business to 75 percent.
KA paid approximately RMB 19 million (EUR 2.3 million, or NOK17 million) in cash for the 24 pecent stake. “This is an exciting opportunity for us from a business perspective providing more room for bringing in expertise from other KA facilites into SKADFM. In excess of 200 employees are working in Driver Control Systems inChina, and product lines within this business area will be integrated into SKADFM during the next year as a direct result of KA’s increased ownership”, said Senior Vice President , DCS Asia, Bent Wessel-Aas. Shanghai SKADFM is one of seven KA facilites inAsia, and was established in 1995 as a 50/50 percent joint ventue between DongFeng of China and Morse Cables. Following KA’s acquisition of Teleflex in 2007, KA has held a 51 percent share majority in the venture. With the recent transaction KA’s stake has now been increased to 75 percent in SKADFM. DETC – a Nissan DongFeng company - still holds 25 percent of the shares in SKADFM, and thus continues as an important business partner for KA.