Stuttgart-based Behr GmbH & Co. KG has agreed to its second joint venture in China in the last five months to produce air conditioning systems for the world's fastest growing auto market.
The new joint venture, Shanghai Sanden Behr Automobile Air Condition Co. Ltd., is based in Shanghai, China.
Behr will have 17.5 percent of the new company, Japanese compressor maker Sanden Corporation, will hold 35 percent, Shanghai Automotive Co. Ltd. will have 38.5 percent and Shanghai Longhua Industrial Co. Ltd., an industrial development company, will control 9 percent.
Sanden and Behr have had a joint venture in Japan since 2001
The new company plans to produce 1.4 million compressors this year and increase that number to 3 million by 2008. Sales this year are expected to be around E155 million, with a target of E300 million by 2010.
Behr's first joint venture in China was with Shanghai Automotive, a subsidiary of Shanghai Automotive Industry Corporation, China's biggest automaker and supplier group. The partners signed their deal to make and market air conditioning and engine cooling products for the Chinese market in October.