Shanghai (ZXZC)- FORVIA, the world's 7th-largest automotive technology supplier, cemented its partnership with BYD as they will jointly establish a new state-of-the-art seat assembly factory in Rayong Province, Thailand, FORVIA announced a few days ago.

This new facility, operating under the name of Shenzhen Faurecia Automotive Parts Co., Ltd, a joint venture between BYD and FORVIA established in 2017, will engage in complete seat production, with FORVIA holding the majority of shares.

Photo credit: FORVIA

This strategic leap reinforces the global technological alliance between FORVIA and the leading Chinese electric vehicle manufacturer, BYD, further bolstering their market presence in the Asia-Pacific region, said FORVIA.

Notably, their collaboration has already resulted in the establishment of seven cutting-edge factories in China, including four within the past 18 months.

The introduction of FORVIA's automotive seating business into the Thai market holds significant milestone significance, further enhancing the group's existing industrial layout in Thailand, which already encompasses automotive interior, electronics, and green mobility industries.

Mr. Patrick Koller, CEO of FORVIA, highlighted the importance of developing new projects on the foundation of existing partnerships as a key driver of enhanced customer relations. He said the decision to establish the new factory in Thailand was made possible due to the country's robust logistics and export infrastructure, as well as FORVIA's longstanding industrial presence in Thailand. This decision aligns with FORVIA's strategic approach of striking a balanced combination of customers, technology, and geographic expansion. Moreover, the new facility will further propel its growth in the Asia-Pacific region, where it is estimated to account for 57% of global automotive industry growth over the next 15 years.

The collaboration between FORVIA and BYD can date back to 2017. FORVIA added the partnership has been built on a strong industrial foundation, enabling the annual production of 2.6 million seats and the establishment of an R&D center in Shenzhen.