SHANGHAI, China — Dana Mauritius will invest in an existing Dongfeng subsidiary, which is Chinas largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle.
Dana Corporations wholly owned subsidiary Dana Mauritius has closed on the purchase of 4% of the registered capital of Dongfeng Dana Axle, a Chinese commercial vehicle axle manufacturer formerly known as Dongfeng Axle.
Dana Mauritius paid approximately $5 million for this equity interest. Under the Sale and Purchase Agreement, as amended, Dana Mauritius has agreed, subject to certain conditions, to purchase an additional 46% equity interest in Dongfeng Dana Axle, within the next three years for approximately $55 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 a research and development centre will be established.
We are very pleased to complete this transaction with Dongfeng, said Frank Sheehan, vice-president of sales, marketing and product planning for Danas Heavy Vehicle Products group. This joint venture is a big step forward in achieving Danas aggressive Asia Pacific growth strategy.
Dana has seven other joint ventures in the Asia-Pacific region, including two in China. With more than 4,300 employees in 18 facilities in the region, Dana produces axles, propshafts, structures, and sealing and thermal-management products for a host of light- and heavy-vehicle manufacturers.
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