On September 22, Lear, a global leader in automotive seating and electrical and electronic technology, announced that it has signed a final joint venture agreement with Hulian Precision Co., Ltd. Listed on the Taipei Stock Exchange, Hu Lian is a world-class manufacturer of automotive connector products.
Subject to regulatory approval, the joint venture will be established in Yangzhou, China. The establishment of the joint venture will rapidly expand Lear's vertically integrated capabilities to design and produce a range of connector system products for current and future vehicle architectures for global automakers.
Enrique Orta, Global Vice President of Lear's Connector Systems business, said: "The establishment of the joint venture will actively promote the growth of the connector systems business and enhance the competitiveness of our wiring harness business. The collaboration with Julian allows us to leverage our unique strengths to integrate our scalable manufacturing capabilities, realize cost savings and joint research and development of new products, and provide customers with technological innovation, reliable quality, and cost-competitive connector system solutions." ”
Founded in 1977, Hulian has decades of rich technical experience and a senior management team, as well as sales offices throughout Southeast Asia, and has cost-advantaged production bases in Nanjing and Dongguan, China, and Hanoi, Vietnam.
"The cooperation between the two sides will enhance Hulian's market position in the field of automotive connectors and optimize our existing product and technological innovation capabilities," said Zhang Zixiong, chairman of Hulian, "Through vertical integration of the industry, Hulian's connector parts enter the supply chain of international automakers." Lear and Hulian complement each other to become world-class suppliers of products, bringing high-quality products and value to our customers. ”
Lear and Hulian are expected to receive regulatory approval and complete leadership appointments in the fourth quarter of 2021. Lear will own a majority stake in the joint venture and incorporate its results into the financial statements.
Sun Yi, Vice President of Lear's Asia Pacific Electrical and Electronics Business, said: "The establishment of the joint venture will leverage Hulian's existing connector system products with Lear's strong electrical architecture system, as well as our strong cooperative relationship with global automakers, to further build our strong high-quality and innovative product system. ”
China is the world's largest automotive market and the world's leading market for electric vehicles. The Chinese market business has become an important part of Lear's global business. Since entering China in 1996, Lear has combined global engineering capabilities and local knowledge and resources to provide Chinese automotive manufacturers with technology-leading, cost-optimized automotive seating and electrical and electronic solutions. Lear currently has 48 manufacturing facilities in China.