Johnson Controls To Form Joint Venture With Yanfeng Automotive

(RTTNews) - Johnson Controls Inc. (JCI) said it signed definitive agreement with Yanfeng Automotive Trim Systems to form a global automotive interiors joint venture.

The non-cash deal comprises of asset contributions by the two parties that will create the largest automotive interiors company in the world with revenues of about $7.5 billion. Yanfeng will hold the majority 70 percent share in the joint venture, and Johnson Controls will have a 30 percent share.

The new company will be headquartered in Shanghai and the global engineering, development and customer centers would be located in the United States, Europe, China, Japan and India.

The transaction, which is expected to close in the first half of calendar year 2015, is subject to limited conditions.

Yanfeng Automotive Trim Systems Co., Ltd. is a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd.