Auto parts maker Chuo Spring Co. said Tuesday it will establish a joint venture in Kunshan in eastern China's Jiangsu Province by the end of September to produce brake and door-lock cables.
Kunshan Chuhatsu Lioho Machinery Co. will be capitalized at $4.5 million and will be owned 80 percent by Chuo Spring and 20 percent by Liufeng Machinery Industry Co.
The latter is a local manufacturer of aluminum auto parts that is majority owned by Taiwan's Lioho Machine Works Ltd.
Kunshan Chuhatsu will export products to Japan and supply the Chinese units of Toyota Motor Corp. and other Japanese automakers, Chuo Spring said.
The new venture will start operating next April and aims to generate sales of 800 million yen in 2004, rising to 2 billion yen in 2006, Chuo Spring said.