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Dana increases stake in mainland
By Wu Yuxin & Wei Wei'an |
July 20, 2011, Wednesday
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Print Edition
Print Edition
UNITED States auto parts maker Dana Holding Corp has announced it will increase its stake in the Chinese venture with Dongfeng Motor Corp in an attempt to ride on the growing commercial vehicle business in China.
Ohio-based Dana paid US$124 million to the Chinese partner for an additional 46 percent stake in Dongfeng Dana Axle Co Ltd, lifting its shareholding to 50 percent in the venture.
The Dongfeng Dana Axle Co was set up in 2005, making drive and steer axles for light, medium and heavy-duty trucks and buses. It operates five production bases nationwide with total assets of 1.83 billion yuan (US$282 million) .
"We are encouraged by the continued strong performance of the Chinese truck and bus markets," said Roger J. Wood, president and chief executive officer of Dana.
"China now has the largest commercial vehicle market in the world. We are pleased to join with Dongfeng to address this growing market segment and to support Dongfeng's growing business overseas," he added.
Last year, DDAC's sales revenue achieved nearly US$1 billion. Wood expects this year's revenue would be roughly the same.
Through the strengthened cooperation, Dongfeng will also be benefited to expand its commercial vehicle business outside China, said Huang Gang, general manager of Dongfeng Commercial Vehicle Co.
Dana is aiming to achieve a compound sales revenue growth of 10 percent worldwide by 2015 through expansion in South American and Asian markets.
China's vehicles market has cooled down for a while, particular for commercial vehicles this year as economic growth slowed and monetary policy tightened. Aziz Aghili, president of Dana's Asia Pacific operation, told reporters that the company is still confident of China's economic development and demand for updated technologies for better transportation efficiency will also feed business prospects in the commercial vehicle segment.
The company has set up eight operations in China . Its new China technology center in Wuxi is scheduled to open by the year end.
Ohio-based Dana paid US$124 million to the Chinese partner for an additional 46 percent stake in Dongfeng Dana Axle Co Ltd, lifting its shareholding to 50 percent in the venture.
The Dongfeng Dana Axle Co was set up in 2005, making drive and steer axles for light, medium and heavy-duty trucks and buses. It operates five production bases nationwide with total assets of 1.83 billion yuan (US$282 million) .
"We are encouraged by the continued strong performance of the Chinese truck and bus markets," said Roger J. Wood, president and chief executive officer of Dana.
"China now has the largest commercial vehicle market in the world. We are pleased to join with Dongfeng to address this growing market segment and to support Dongfeng's growing business overseas," he added.
Last year, DDAC's sales revenue achieved nearly US$1 billion. Wood expects this year's revenue would be roughly the same.
Through the strengthened cooperation, Dongfeng will also be benefited to expand its commercial vehicle business outside China, said Huang Gang, general manager of Dongfeng Commercial Vehicle Co.
Dana is aiming to achieve a compound sales revenue growth of 10 percent worldwide by 2015 through expansion in South American and Asian markets.
China's vehicles market has cooled down for a while, particular for commercial vehicles this year as economic growth slowed and monetary policy tightened. Aziz Aghili, president of Dana's Asia Pacific operation, told reporters that the company is still confident of China's economic development and demand for updated technologies for better transportation efficiency will also feed business prospects in the commercial vehicle segment.
The company has set up eight operations in China . Its new China technology center in Wuxi is scheduled to open by the year end.
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