Delphi to open auto air-conditioning joint venture in Beijing

Shanghai, January 8, (Gasgoo.com)-Shanghai Delphi Automotive Air Conditioning Systems Co. (SDAAC), China's largest auto air conditioning system supplier, has signed a three-way joint venture deal with two partners in Beijing. The new factory to be built will have an annual capacity of 200,000 auto air conditioners, local media Auto Weekly reported yesterday.

 

Under the agreement signed on December 28, 2007, Shanghai Delphi will hold a 51 stake in the joint venture while Beijing Automotive Industry Holding Corp (BAIC) or Beiqi will hold a 40 stake and a local auto parts supplier Beijing Guanghua Shiyuan Co will hold the remaining 9 percent.

 

"Delphi will bring its state-of-art technology in automotive parts manufacturing and management expertise to the joint venture," said Scott Graham, director of Asian-Pacific Operations of Delphi, adding that Beiqi has better understanding and networks in the local market.

 

This is also the 8th tie-up that  Beiqi has reached in auto parts business in 2007. The state-run automaker has been striving to establish its own parts supplying network. During the past year, Beiqi has signed eight joint venture contracts with other players, like Delphi and Lear Corp.