KS Kolbenschmidt GmbH, a wholly owned subsidiary of KSPG AG (a member of the Rheinmetall Group), and Japan's Riken Corporation are to set up a joint venture for the manufacture of piston rings in the Chinese province of Hubei.
A shareholder agreement for the envisaged joint venture has now been signed. Under this agreement, KS Kolbenschmidt will take over 30 percent of the shares in Riken Automobile Parts (Wuhan) Co. Ltd. The two market leaders in piston and piston ring technology will therefore further consolidate their worldwide alliance.
In April 2015, the two companies had signed an agreement on the joint development and marketing of piston system assemblies for light and heavy-duty engines for automotive and industrial applications.
The prime objectives of the alliance are to help both companies’ customers reduce CO2 emissions and improve durability of their engines as well as lower total ownership costs. In the process, KS Kolbenschmidt and Riken will be optimising their piston assembly solutions for their joint customers worldwide and coordinating their regional marketing and development efforts as well as customer technical support.