Continental and China's CITC to Form Battery-Systems JV
By Max Bernhard
Continental AG (CON.XE) said Wednesday that it and Sichuan Chengfei Integration Technology Corp. (002190.SZ), or CITC, plan to form a joint venture to develop and produce 48-volt battery systems for the automotive industry.
The joint venture will start its operations in the middle of 2018 and supply battery systems to customers in Europe, North America, China and other Asian markets, Continental said.
The German car supplier said one of its subsidiaries and CALB, a subsidiary of CITC, which in turn is owned by Aviation Industry Corp. of China, signed an agreement to form the new joint venture, in which Continental will hold 60% and CITC 40%.
"Entering the 48-volt battery systems business is a strategically important step for Continental, and one that will further strengthen our position as a system provider on the fast-growing mild hybrid market," said Continental Chief Executive Elmar Degenhart.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
March 07, 2018 04:22 ET (09:22 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.