(Yicai) Dec. 22 -- Jifeng Auto Parts has secured a deal that could be worth CNY9.8 billion (USD1.4 billion) to supply passenger car seats to a European luxury automaker, marking the Chinese firm’s second major agreement with a top-tier European luxury carmaker in the past 20 months.

Jifeng’s German unit Grammer Jifeng Automotive Seating will develop and make front, middle, and rear row seat assemblies for the client’s vehicles, its Ningbo-based parent firm announced yesterday, without naming the buyer due to confidentiality. The seats will be supplied from September 2028 for eight and a half years.

With this latest order Jifeng said it has gained its second overseas luxury auto client, following a CNY12 billion (USD1.7 billion) eight-year passenger seat supply deal with Germany’s BMW secured in April last year.

The order underscores Jifeng’s transformation from a domestic into a global supplier and creates favorable conditions for expanding its production capacity in Europe and achieving economies of scale, the company said, adding that this is expected to have a positive and far-reaching impact on its financial performance.

Jifeng’s shares [SHA: 603997] closed 0.9 percent lower at CNY13.88 (USD1.97) each in Shanghai today, after rising in the morning session.

Editor: Futura Costaglione