Today marks the formal launch of Yanfeng Automotive Interiors, a joint venture (JV) between Yanfeng Automotive Trim Systems Co., a wholly owned subsidiary of Huayu Automotive Systems Co., which is the component group of Shanghai Automotive Industry Corporation (SAIC) and Johnson Controls.

Yanfeng Automotive Interiors has become one of the world’s largest automotive interiors parts supplier with Johnson Controls, who has a 30 percent share of the company. It will be headquartered in Shanghai. The JV has projected revenues of $8.5 billion and an order backlog of $10 billion.

“Combining two outstanding global automotive interiors businesses enhances our ability to serve customers throughout the world,” said Alex Molinaroli, CEO of Johnson Controls. “Yanfeng Automotive Interiors will have unmatched scale and reach in the industry with the talents of 28,000 dedicated employees globally.”

The new company will have more than 90 manufacturing, development, engineering and customer service locations around the world. The product portfolio will include instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.

The decision to spin-off its interiors business into a JV is one in a series of strategic actions taken by Johnson Controls to strengthen and rebalance its portfolio of operating businesses.