© demarco dreamstime.com Electronics Production | March 29, 2016
PKC establishes joint venture with JAC
PKC Group has signed a joint venture contract with Anhui Jianghuai Automobile Co., Ltd's (JAC) subsidiary Hefei Jianghuai Automobile Co., (Hefei JAC).
The joint venture aims to increase PKC's market share in in China in both medium and heavy duty truck segments by 5 percentage points and expand the business to buses, light trucks, vans, pick-up trucks and other light vehicles. The JV will comprise of the current wiring harness business of JAC group with the aim to gradually take-over also other, currently outsourced, wiring systems business. The parties’ aim is to develop the JV as a primary supplier for all wiring harnesses to the JAC group. The 50/50 joint venture is accomplished through a new company that will be established by Hefei JAC and PKC in the city of Hefei in Anhui province in China with an equity value of EUR 14 million. President & CEO Matti Hyytiäinen, PKC Group: “We are extremely proud to team up with JAC, which is a one of the leading Chinese automobile OEMs. This expansion in China is a major breakthrough for PKC and logical continuity to our strategy published in spring 2013. PKC’s market position in China will increase significantly.”