Eberspaecher and China’s Shaanxi Auto Group set up JV for CV exhaust tech systems

December 19, 2013: Shaanxi Wanfang Autoparts Co, a subsidiary of Shaanxi Automobile Group Co, headquartered in Xi’an, Shanxi Province, and German automotive supplier Eberspaecher have signed a contract to set up a joint venture to produce commercial vehicle aftertreatment systems. The aim of the joint venture is to provide modern exhaust technology for the Chinese market.

While the Eberspaecher Group is the market and technology leader for commercial vehicle exhaust technology in Europe and the USA, Shaanxi Automobile Group is one of the largest commercial vehicle makers in China.

The new company will supply to Shaanxi Automobile Group Co with exhaust after treatment systems from China 4 upwards. “The joint venture provides Eberspaecher with excellent opportunities to become further established in the growing Chinese market,” said Dr Thomas Waldhier, COO Exhaust Technology.

“The signing of the contract is a milestone for us in the largest market for commercial vehicle exhaust systems worldwide”, added Richard Hu, vice-president (Business Unit Asia), of Eberspaecher Exhaust Technology. “The founding of the joint venture is a new strategic direction, which will also strengthen our worldwide positioning in the commercial vehicle sector further.” Production is to start up in 2014, and in 2015 reach an initial volume of about 100,000 exhaust systems for diesel and CNG engines per year. In addition to production, the planned scope of services also includes sales, aftersales service and system integration.

Photograph: Eberspaecher COO Exhaust Technology Dr Thomas Waldhier (sixth from left) and Richard Hu (fifth from left), vice-president of Business Unit Asia of Eberspaecher Exhaust Technology, at the signing of the joint venture agreement with Hong Wei Fang, chairman of the Shaanxi Auto Group (seventh from left) and Hong Min Yuan, President of the Shaanxi Auto Group (fifth from right).