(Yicai Global) March 16 -- China's leading textile-based car interiors maker, Shanghai Shenda Co., will invest USD16 million in the establishment of a new domestic unit for Auria Solutions Ltd., the joint venture it set up last year with Luxembourg-based International Automotive Components (IAC) Group.
The firm will set up Auria China Auto Components Co. with registered capital of USD8 million and hopes that it will become Auria's integrated management center for its various operations in China, as well as a platform for international exchange with Shanghai Shenda, a company statement stated.
Shanghai Shenda set up the Auria JV last year after spending USD316 million on acquiring IAC Group's automotive soft furnishings and acoustic components assets.
The new unit will mainly engage in consulting, planning and agency services, and will not work directly in manufacturing, therefore not posing horizontal competition for the company's existing business, Shanghai Shenda added.
It will also conduct business exchanges and resource-sharing in various aspects including as design and research and development, technological innovation, production processes, and management systems globally.
Shanghai Shenda holds a 70 percent stake in the JV formed with IAC Group last year. IAC, the world's third largest supplier of automotive interior parts, owns 30 percent. The Luxembourg company supplies globally auto heavyweights such as Bayerische Motoren Werke AG, General Motors Co. and Daimler AG.