Business / Corporate

Japan's Aisin Seiki forms auto parts joint venture in China

JIJI

Japanese auto parts maker Aisin Seiki Co. said Wednesday that it has established a joint venture to produce automatic transmission system parts in Anqing, eastern China, with local firm Anhui Ring New Group Co.

Aisin is set to invest a total of ¥10 billion in the new firm, Aisin (Anqing) Auto Parts Co., which will produce aluminum die-cast parts, such as transmission cases, from August 2020.

The move reflects growing demand for automatic transmission systems for passenger cars in China.

In China, Aisin currently manufactures aluminum die-cast parts at three plants.

The new company, with an annual output capacity of 700,000 units, will supply the parts to Aisin’s automatic transmission factories in eastern China.

Aisin (Anqing) Auto Parts is capitalized at 237 million yuan (¥4 billion), with 85 percent from Aisin. The joint venture will have some 150 employees when it starts production.