(Yicai Global) Oct. 19 -- Huayu Automotive Systems Co. [SHA:600741] (HASCO) and Magna Mirrors Taicang Automotive Technology Co., a wholly-owned subsidiary of Magna International [NYSE:MGA], will set up a joint venture engaged in electric drive systems with registered capital of CNY200 million (USD30.2 million), the China-listed firm said in a press briefing yesterday.
HASCO will take a 50.1-percent stake in the new company with Magna Mirrors taking the remainder.
Magna International is a world-renowned auto parts supplier, and the newly formed company will develop and manufacture electric drive system assembly products for new-energy vehicles.
HASCO is mainly engaged in the development, production and sale of independent automobile parts. The investment will help the firm improve its presence in the industrial chain of core parts for new energy automobiles, it said in the statement.