Shanghai (ZXZC)- On May 31, Dongfeng Parts and Components Group and Fawer Automotive Parts Limited Company (Fawer Auto Parts) inked an agreement in Wuhan, capital of Hubei Province, to jointly establish a joint venture, dubbed Dongfeng Fawer Pump Industry Co.,Ltd.

It is worth mentioning that FAW group has 24.41% shares in Fawer Auto Parts. The establishment of the new joint venture signifies a further cooperation progress between Dongfeng Motor Corporation and FAW Group.

Reportedly, the new joint venture, located in Shiyan New Industrial Park, Hubei Province, will work on providing high-quality pump products for commercial vehicles (CV), passenger vehicles (PV) and electric vehicles (EV) and deepening the cooperative relationship with Dongfeng Motor’s major clients, relying on the technology, marketing and management resources from both investors. Besides, the new joint venture aims to achieve revenues of RMB 260 million by 2023.

According to public information, Dongfeng Parts and Components Group is a large auto parts supplier with 99.9% shares owned by Dongfeng Motor Company Limited (DFL). Its scope of business covers such areas as auto parts, the R&D, purchase, manufacturing and marketing of powder metallurgical products.

Fawer Auto Parts is a listed company with the R&D, production and marketing of auto parts as its main line of business. Its products are applied in multiple vehicle segments, covering heavy-duty, medium, light and mini CVs as well as premium and mid-end and low-end PVs. Meanwhile, the company's products include environmental systems, chassis systems, braking and transmission systems, steering and safety systems, electronics, engine accessories, etc, which offer great technical support to the new joint venture.

As early as June 14, 2017, Dongfeng Parts and Components Group and Fawer Auto Parts had signed a strategic framework agreement in Changchun, Jilin Province to conduct extensive exploration and communication in capital operation, system reform and technology innovation, etc.

On December 11, 2017, both companies inked a letter of intent to build a joint venture. Under the agreement, Fawer Auto Parts will provide the new joint venture with technical support in products development, manufacturing technique and product testing. Both parties will permit the joint venture to use the trade mark of Fawer Auto Parts and Dongfeng Parts and Components Group for payment.