FRANKFURT -- ThyssenKrupp has bought a 34 percent stake for an undisclosed amount in a newly founded Chinese automotive supplier that will make crankshafts, it said on Wednesday.
The supplier, Huizhou Sumikin Forging Co, will start production of forged crankshafts in November and expects to manufacture roughly 800,000 per year.
"The investment in HSFC will increase ThyssenKrupp Automotive's presence in Asia and provide an opportunity to participate in the growth in Chinese, Korean, Japanese and European vehicle models," Thyssen said in a statement.
The German company, which manufactures everything from flat carbon steel to escalators and cruise yachts, generates about 1 billion euros ($1.28 billion) from annual sales of some 12 million crankshafts.
A spokesman for ThyssenKrupp Automotive declined to provide financial details of the deal.
The automotive division, which contributed roughly 6.3 billion euros in sales to the group during the fiscal year that ended in September 2003, already sells steering columns, chassis and springs in China.
The other shareholders of Huizhou Sumikin are Japan's Sumitomo Corp. and Sumitomo Metal Industries, which respectively own 15 and 51 percent of the company.