Novares acquires complete control of its JV in Wuhan

Jan 31, 2019   Tier Suppliers

Novares Group has acquired all of its joint venture (JV) company in Wuhan, China, buying the final 30% stake from JV partner Yazhong via its Chinese subsidiary Noveastern.

Additionally, the company has relocated its Wuhan production plant to a new, modern site equipped with the latest technology, which houses both the production facilities and the Wuhan Technical Centre. The site is one of the company’s most modern facilities, conforming to the Group’s global production standards.

 

Novares (then Mecaplast) signed the joint venture agreement with Yazhong in 1997, becoming one of very few French companies in China at that time. The JV was created to serve customers Citroën and Dongfeng for the manufacture of the ZX car.

 

The €32 million ($36.48 million) turnover Wuhan operation is now located in the Shanghai General Motors (SGM) suppliers park, making it even closer to the General Motors subsidiary. It also serves other automotive customers in the region, such as DPCA, Ford, Honda, Renault-Nissan and Dongfeng.

 

The plant, with more than 300 employees, produces interior plastic components and trunk trims; exterior pillars and cowl tops, along with engine parts: air intake systems, air intake manifolds, cam covers, oil sumps, thermostat housings and beauty covers.

 

“Novares is an experienced, long-term player in the Chinese market and we are planning to expand our operations in the country. The 100% ownership of our Wuhan operation, combined with the relocation and upgrade of facilities at the site marks an important step in that journey,” said Pierre Boulet, CEO of Novares.

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