The French industrial group, Valeo, has announced that it has increased its shareholding in its Changchun-based compressor development and manufacturing JV which will be re-named Valeo Compressor (Changchun) Company Ltd.
Previously Valeo held 60% of the equity in the entity which employs 130 people, while the Chinese automotive company, Fawer, an FAW affiliate, held 40%.
This transaction is aimed to strengthen Valeo's presence in the Chinese and Asian markets, and is stated to represent a key element in the group's development strategy. The Valeo Group has been present in China for over 15 years, with facilities in the five automotive industry hubs: Shanghai, Wuhan, Nanjing, Guangzhou, and Changchun. The group employs 3,995 people in six development centers, 15 production plants, and a distribution center. Valeo sales in China in 2009 are expected to exceed EUR400 million in 2009, an increase of 25% compared to 2008.