Changchun (China), November 5, 2019 – Grammer AG has signed today an agreement with CHANGCHUN FAWSN GROUP CO., LTD., Changchun, China, an affiliated company of FAW Group Co., Ltd., one of the largest automotive manufacturers in China, to establish a Joint Venture for automotive interior components. Grammer AG will be holding 50 percent of the new Joint Venture GRAMMER FAWSN Vehicle Parts Co., Ltd. The other 50 percent will be held by CHANGCHUN FAWSN GROUP CO., LTD.
The Joint Venture will be developing and producing a wide range of automotive interior components for vehicles produced by the FAW Group and its foreign partners. Grammer will be contributing its development and manufacturing know-how for all products such as consoles, interior components and functional plastics.
As one of the largest automobile manufacturers in China, the FAW Group produced last year more than 3.2 million passenger cars for the local market and exports to other Asian countries, Africa and Latin America.
“Through the Joint Venture with the CHANGCHUN FAWSN GROUP, we reach another important milestone in our growth strategy in China. By working closely with a leading local OEM, we will be able to reinforce our position in the largest automotive market and substantially spur our planned growth in Asia,” explains Thorsten Seehars, Chief Executive Officer of Grammer. “This Joint Venture combines the strengths of a leading Chinese manufacturer with the expertise of one of the leading suppliers for interieur components”.
More than twenty-six million passenger cars are produced each year in China making it the world’s largest market for automobiles. With its new partner FAWSN Group, Grammer possesses an outstanding platform to widen its customer base in China and achieve a greater penetration of other Asian markets at the same time.
Grammer generates today around 15 percent of its Group revenues in China with a total of six production and two research and development sites addressing both the passenger and commercial vehicle segments. Looking ahead the new Joint Venture in Changchun will further support Grammer’s growth plans in China.
About CHANGCHUN FAWSN Group
With its headquarter in Changchun City, Jilin Province, Changchun FAWSN Group Co., Ltd. is a subsidiary of FAW Group, one of the largest automakers in China. The group has 9,500 employees, mainly providing FAW Group’s with varieties of automotive parts and systems for China and overseas markets.
About Grammer AG
Grammer AG is located in Amberg, Germany, specialized in the development and production of automotive interior components and systems, as well as driver suspension seats and passenger seats for road and construction machinery vehicles. Grammer Automotive Unit offers headrests, armrests, central systems, high quality interior components, operating systems and innovative thermoplastic solutions for high-end automakers and automotive system suppliers. Commercial vehicle operations include truck seats, construction machinery seats (tractors, construction machinery, forklifts) and train and bus seats. Grammer operates in 20 countries around the world and employs approximately 15,000 people. Grammer is listed on the German main board market and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.