Samvardhana
Motherson Automotive Systems Group BV (SMRPBV) has acquired a majority stake in
Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd by Ningbo SMR Huaxiang
Automotive Mirrors Ltd. (SMR NBHX); which is a 50:50 joint venture in China
under its subsidiary Samvardhana Motherson Reflectec (SMR).
With
this transaction SMR NBHX will acquire 60% stake in the Nanchang JMCG Mekra
Lang Vehicle Mirror Co., Ltd. The proposed deal is expected to be completed
within three months from the date of signing, subject to necessary approvals.
JMCG (Jiangling Motors Corporation Group) will continue to retain its 40% stake
in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd.
Nanchang
JMCG Mekra Lang Vehicle Mirror Co., Ltd. is engaged in the manufacturing of
automotive mirrors for passenger vehicles, pick-up trucks, and light and heavy
commercial vehicles in China. The company was established in 2006 with a
manufacturing facility at Nanchang (Jiangxi, China) and reported a turnover of
CNY 131 million (Euro 17 million approx.)
in CY2020.
SMR
NBHX is an existing key supplier of vision systems to the passenger car OEMs in
China. With this acquisition, SMR group will expand its portfolio into
commercial vehicle segment as well thus opening new opportunities for growth in
this region. The additional manufacturing facility will further strengthen its
existing footprint to 6 facilities across China and provide extra capacity in
the region for future growth.
Vivek
Chaand Sehgal, Chairman, Motherson said, “This acquisition is of strategic
importance to us. We see a lot of synergies in the products and processes of
both companies. This acquisition will further strengthen Motherson’s presence
in this large and growing market and provides access to new customers and
vehicle segments; bringing more opportunities for future growth and expansion.”