Nexteer forms JV with China's Dongfeng to supply steering systems

Nexteer Automotive Corp. has agreed to a joint venture with China-based Dongfeng Motor Parts and Components Group Co. to produce electric power steering systems for Dongfeng Motor Corp.

Terms of the deal announced Monday were not disclosed. The aggrement is subject to regulatory approvals

The EPS systems will be designed and manufactured in a facility near Dongfeng Group's headquarters in Wuhan, China. If approved, the 50/50 joint venture will become the Dongfeng Group’s in-house producer of passenger vehicle EPS systems.

The deal follows Nexteer’s expansion to 21 new customers in the Asia-Pacific region last year, a region now responsible for nearly a quarter of the company’s total revenue, according to the release. Nexteer also supplies EPS systems for Dongfeng-affiliated vehicles including the Peugeot 2008 crossover.

"We continue to seek strategic alliances with OEMs and other business partners," Nexteer President Mike Richardson said in a statement. "The opportunity to join Dongfeng Components in a unique role of JV partner and producer of EPS for future vehicle platforms further expands our presence in the Asia-Pacific region and contributes to our overall revenue growth objectives."

Nexteer ranked No. 60 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $3.4 billion in 2015.

A request for comment was not immediately returned.