SHANGHAI—Canadian automotive supplier Magna International has entered into a joint venture cooperation agreement with China’s Hubei Aviation Precision Machinery Co., Ltd. (HAPM).
HAPM is an automotive seat mechanism and structure component supplier, headquartered in Xiangyang, a city in China’s northwestern Hubei province.
HAPM designs, develops and manufactures automotive seating products, including manual/power recliners, tracks, height adjusters and structures. The company has a customer base in both China and overseas markets.
The deal is expected to close in the fourth quarter of 2017.
Magna says the joint venture will help expand its seating expertise in China and throughout Asia.
“As the world’s largest vehicle market, China is a region in which we want to expand our seating capabilities, and with HAPM’s strong market position and seating mechanism know-how, we expect to grow our business even further in the region and throughout Asia,” said Mike Bisson, president of Magna Seating.
“We are very pleased to establish such a cooperative relationship with Magna. As a world leading automotive supplier, Magna’s global resources and expertise will be vital to the joint venture’s success,” said Mr. Wang Jian, chairman of AVICEM, HAPM’s parent company.