(Yicai Global) Jan. 15 -- Weichai Power, China's major supplier of automotive power systems, will take a 51 percent stake in Austrian vehicle drive system developer VDS to become its controlling shareholder.

The acquisition will make up for the Weifang, eastern Shandong province-based company's technical shortfalls.

The pair inked a corresponding agreement in the provincial capital of Jinan today, local media Dazhong Daily reported, but without relating the deal's financial details.

VDS develops automotive drive systems. Its hydraulic gearboxes and power diverters are used in tractors, loaders, government vehicles, new energy buses and many other applications.

The Upper Austria-based firm also boasts great capability in product design, development and testing and it offers one-stop research and development consulting services that range from designing plans to sample item manufacturing.

This restructuring will help the Chinese engine system maker compensate for its technical shortcomings in hydraulic transmission gearbox products and in mastering the key and core technologies of the continuously variable transmission powertrains used in agriculture, the report also noted.

Founded in 2002, Weichai Power has the highest sales volume of any auto parts supplier in China. It mainly provides power systems for various commercial vehicles.

Editor: Ben Armour