Tong Yang Sells Shares in Chinese Auto-Parts J.V. to Magna2011/04/08 | By Quincy Liang
Taipei, April 8, 2011 (CENS)--Tong Yang Industrial Co., Ltd., the largest auto-parts conglomerate in Taiwan, recently sold 50% shareholding in one of its Chinese subsidiaries, the Wuhu Youth Tongyang Auto Plastic Parts Co., Ltd., to Magna International Inc. of Canada, the world's fifth-largest auto-parts supplier, and Chinese company Changshu Automotive Trim Co., Ltd.
The deal generated profits of US$2.2 million for Tong Yang, who has 16 subsidiaries or joint ventures in China (including Wuhu Youth Tongyang).
Magna is the most diversified automotive supplier in the world, which designs, develops and manufactures automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. As of December 2010, Magna has 256 manufacturing operations and 82 product development, engineering and sales centers in 26 countries.
Tong Yang says the share sale is expected to help develop product-development cooperation ties with Magna, having sold 30% of its 50% shareholding to Magna and the rest 20% to Changshu Automotive Trim.
Wuhu Youth Tongyang was founded in 2004. Tong Yang says Magna decided to purchase the shares to further develop its business deployment in China.
Tong Yang has 16 production bases in China, including five coating plants, one tooling plant and one sheet-metal parts plant. The new venture in Hunan Province is expected to help Tong Yang tap into the supply chains of other joint ventures between Guangzhou Automobile and foreign partners as Honda and Toyota.