Bosal has established a joint venture company in China, to manufacture and sell exhaust systems in the fast-growing Chinese market.
The joint venture, Bosal Huaxiang Co., Ltd, is a 50:50 partnership with Chinese auto parts supplier Ningbo Huaxiang Co. Ltd and will be based in Shanghai.
Karel Bos 1928, Chairman of the Bosal Group, and Xiao Feng Zhou, President of Ningbo Huaxiang Co. Ltd, signed a Memorandum of Understanding (MOU) on March 10, 2010.
The primary focus of the new company is the manufacture and sale of motor vehicle exhaust systems. The company may also produce and sell other products within Bosal’s portfolio, such as tube products, catalytic converters, exhaust hanger systems and jacks.
The target customers for the new company will be the leading Chinese OEMs such as SAIC, FAW, FAW-VW, SVW, SGM and others in the Shanghai region. The aftermarket is also an important target.
Both parties stress that this is a first step into the Chinese market; further opportunities in China will be exploited.