XIANGFAN, China — Dana Corp. and Dongfeng Motor Co. Ltd. have agreed to form a joint-venture company to develop and produce commercial vehicle axles in China. The 50/50 joint venture will be called Dongfeng Dana Axle Co. Ltd.
As part of the agreement, Dana will invest in an existing Dongfeng subsidiary to form Dongfeng Dana Axle. Dana’s net investment at the time of closing is expected to be about $60 million. Headquartered in Xiangfan, China, the joint-venture company will employ approximately 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established in Wuhan.
Dongfeng Dana Axle will continue to primarily supply Dongfeng Motor, which itself is one of the world’s largest truck producers in China, while also expanding its product offerings and customer base predominantly in the Chinese market. Annualized sales for the joint venture company in 2005 are expected to be approximately $400 million. Driveshafts and other products for commercial vehicles may be added to the joint venture following its establishment.
Dongfeng Dana Axle will be the largest commercial vehicle axle supplier in Asia, according to Nick Cole, president of Dana’s Heavy Vehicle Technologies and Systems Group. “For Dana’s Commercial Vehicle Systems business, this joint venture also provides a great opportunity to balance our extensive operations in North America,” he said.
For more information, visit: www.dana.com.
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