(Yicai Global) April 12 -- A unit under Chinese component maker Nantong Jianghai Capacitor Co. will team up with a counterpart manufacturer in the United States as it looks to speed up its ascension to the global market for high-end automotive electronics.
Nantong New Jianghai Power Electronic Co. will form an equal-split joint venture with Kemet Corp., based in South Carolina, the Chinese firm said in a statement yesterday. Each party will initially chip in USD5 million in cash toward the new company, which requires total investment of USD25 million.
Jianghai’s ultimate goal is to domestically produce thin-film and axial aluminum electrolytic capacitors that meet international vehicle standards, to enhance profitability and enlarge business scale, the firm added. It sees the investment as low-risk and controllable given China’s push to adopt new-energy vehicles.
Xin Guobin, vice minister of industry and information technology, said in September that the nation would ban the production and sale of petrol and diesel cars in the “near future.” The southern island province of Hainan became the first region to set a timeline for the plan on April 9, when Governor Shen Xiaoming said it would ban petrol and diesel cars from its road by 2030.
Kemet will guide production and quality management at the new firm, while Jianghai will take control of production and operations, the statement added. The products made by the joint venture will sell under the two companies’ individual brands.
Copy-edited by James Boynton