Germany company takes 80 percent stake in Corpco Beijing Technology and Development Co. Ltd.
The German company SAF-HOLLAND, which supplies equipment to the truck and trailer industry, has entered into a definitive agreement to acquire an 80-percent equity stake in the Chinese company Corpco Beijing Technology and Development Co. Ltd. In a first step a joint venture will be formed with an option regarding the remaining 20 percent of Corpco’s shares. SAF Holland says the expansion will expand its presence into emerging markets, especially China. Corpco manufactures commercial vehicle suspensions systems in China.
"We are pleased that we have gained with Corpco a strong partner which will help us to further explore the growing market for truck and bus suspensions in China. The combination of the organizations is a perfect move as both SAF-Holland and Corpco, are major suppliers of suspension systems with strong brands in their respective markets," says Detlef Borghardt, CEO of SAF-Holland.
SAF Holland adds that the acquisition will help strengthen the two companies’ business, with the combination of SAF-Holland’s sizable footprint in North America complementing Corpco’s presence in China. SAF Holland adds that the combination of technologies and Corpco’s strong brand with SAF-Holland’s Neway brand brings additional benefit. The Neway brand for suspensions stands for tough, durable and reliable products with a long and proven history whereas the Corpco brand is known for speed to market and a broad portfolio resulting in increased export opportunities.
"We are delighted to deepen our partnership with SAF-Holland. Since 1997, we have had a long successful relationship and the bundling of our forces in a joint venture is a logical development to even increase our market power with the very well-positioned brands Neway and Corpco in the future," says Tom Yu, CEO of Corpco Beijing.