Huayu Automotive Systems (SHA:600741) partnered with Shanxi Huaxiang Group (SHA:603112) to establish a joint venture, according to a Monday filing on the Shanghai Stock Exchange.
The venture, to be named Huaxiang Sandman (Shanxi) Automotive Systems, will be casting and processing cast iron products, such as automotive brake housings/brackets and steering knuckles.
Huayu Automotive will invest in the venture through its subsidiary, Huaxiang Sandman (Shanghai) Automotive Systems, which will inject 183.9 million yuan into the venture. Huaxiang Group will inject 429.1 million yuan into the venture's capital.
Sandman Shanghai will own 30% and Huaxiang will hold 70% of the venture, the Chinese automotive parts system integration supplier said in the filing.
Huayu Automotive's shares jumped less than 5% and Huaxiang's shares climbed more than 6% in recent trade.
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