Leoni strengthens market position with a JV in China

The papers have been signed and The Chinese State-owned Assets Supervision and Administration Commission (SASAC) has approved the joint venture. However, it provides that Leoni will sell 50 percent of the shares in its wiring systems plant in Langfang to BHAP. This plant has exclusively been making cable harnesses for the car ranges of Beijing Benz Automotive Co Ltd (BBAC), the joint venture between Daimler AG and its Chinese partner BAIC. The joint venture in China will give Leoni the opportunity to gain new orders from BBAC and other carmakers. The joint venture will also be a key element for Leoni in expanding its business in Asia. All of Leoni’s other activities in China will be unaffected by the new JV - the company will continue to exist outside the new joint venture and will be developed further.