(Yicai) Sept. 22 -- Golden Empire Precision Machinery Technology, a Chinese auto parts maker, plans to acquire a controlling stake in a transmission parts plant in Guangzhou owned by Japan's Unipres Corporation to expand its services in South China.

Golden Empire recently signed a framework agreement for the asset acquisition with Guangzhou Unipres Precision and its parent company, a local investment company wholly owned by the Japanese auto parts supplier, the Shandong-based firm announced yesterday.

The Guangzhou plant has a registered capital of USD35 million. The final purchase price will be determined after an audit and valuation by third-party intermediaries. The core management team of the Guangzhou plant will remain in place for at least five years following the deal, receiving market-based compensation.

Unipres is a leading Japanese manufacturer of stamped and machined auto components, primarily supplying Japanese automakers. According to its Chinese website, the Guangzhou unit mainly produces transmission components, with its key customer being the local plant of JATCO Group, one of the world's largest transmission manufacturers.

Golden Empire said the acquisition is expected to create strong strategic synergies with its existing operations. By integrating Unipres’ production technologies, management experience, and customer resources, the company aims to better serve clients in South China.

Golden Empire's stock price [SHA: 603270] rose 0.8 percent to CNY26.41 (USD3.70) today.

Editor: Emmi Laine