Chongqing Electromechanical announced on January 18, 2011 that its wholly-owned subsidiary, Chongqing Kafu Automotive Braking Steering System Co., Ltd. and Knorr-GmbH of Germany, will enter into a joint venture agreement on January 19 to establish a joint venture company in Chongqing. % and 66% of the equity.
According to the announcement, the joint venture company will mainly be engaged in the valve products of commercial vehicles, assembly of air dryers and clutch servo systems, parts manufacturing, sales, application engineering, and after-sales services.
The registered capital of the joint venture company will be 14.609 million euros (approximately RMB 128 million). Kafu intends to use the brake business as a capital contribution and transfer it to the joint venture company, while Knorr will contribute cash in proportion to its equity in the joint venture company.
Knorr is a multinational enterprise group specializing in the development, design, production and processing of brake systems and air systems for trains and commercial vehicles. Its headquarters is located in Munich, Germany.
Chongqing Mechatronics stated that Cafu's commercial vehicle brake business currently accounts for 44% of Cafu's revenue, mainly for domestic trucks, passenger cars and other commercial vehicles, but its technical level is only in the mid to late 1980s, in line with market development and To improve the technical level, we plan to cooperate with industry leaders to improve technology and product quality and market share.
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