WABCO Announces Joint Venture With Fuwa for Manufacturing of Air Disc Brakes in China
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BRUSSELS, Belgium, October 23, 2008: WABCO Holdings Inc., a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that WABCO has signed a letter of intent with GuangDong Fuwa Engineering Manufacturing Co., Ltd., (Fuwa) to form a joint venture for production of air disc brakes in China. Fuwa is the world's largest manufacturer of commercial trailer axles.
It is expected that the joint venture agreement will be finalized by year-end, and that WABCO will have a 70 percent holding and Fuwa will have a 30 percent holding in the joint venture, which will be located at Fuwa's newly established manufacturing facility in Taishan, Guangdong, China.
"As a technology leader in braking and air management systems, we are enthusiastic about partnering with Fuwa to support their global growth while further strengthening our market position in air disc brakes," said Jacques Esculier, WABCO Chief Executive Officer. "We further enhance our path to develop the Chinese market as a major pillar of WABCO's growth, by teaming up with Fuwa, a key industry player and the biggest manufacturer of trailer axles in China and in the world."
The proposed joint venture will encompass manufacturing, assembly and testing of air disc brakes for commercial trailers. WABCO will bring air disc brakes to the partnership, featuring competitive advantages such as robust single-piston technology, light-weight design, and high performance at lowest weight.
"This cooperation will provide technology related to air disc brakes that will further reinforce our leadership position in axles in the commercial trailer market," said Wu Zhiqiang, President of Fuwa. "With WABCO as our long-term partner, we secure proven and advanced technology to help achieve the full potential of our strategic export growth."
"Establishing this manufacturing footprint in China will provide WABCO with a strategic entry into the growing Chinese market for air disc brakes," said Leon Liu, WABCO President, Asia Pacific. "It represents another major step in the establishment of WABCO as a key partner for Chinese commercial vehicle manufacturers. Our passion is to support Fuwa's growth ambitions as we prepare WABCO for the future expansion of the market for air disc brakes in China."