Shanghai based conglomerate Fosun has formed a joint venture with the Nanjing Nangang Iron and Steel and they have acquired a major stake in the German lightweight automotive company, Koller Beteiligungs GmbH.
The three subsidiaries of Fosun and the Nanjing Iron and Steel Group came together to set up the joint venture – Nanjing Nangang in 2003. The Nanjing Iron and Steel Group controls 40 percent of the project, while Fosun’s three subsidiaries hold 30 percent, 20 percent and 10 percent respectively. However, the exact share of the joint venture in the German company is unknown.
It is the first overseas investment in automotive industry for Fosun and the first overseas investment for Nanjing Nangang .
Koller is a lightweight automotive company. It deals with making vehicle parts that are less heavy as a way to achieve better handling and fuel efficiency. It produces injection molding composite parts and pressing tools, including the PUR-honeycomb sandwich panels for giant European car manufacturers such as Volkswagen, Audi, BMW, Mercedes and Land Rover. Koller owns production facilities in Germany, Hungary and Mexico. As a leader in innovation, Koller is one of the top solutions provider for automotive manufacturers who are looking to reduce pollutant emissions by reducing the weight of the car and energy consumption by a vehicle.
Max Koller, co-founder ad chair executive of the company said that this partnership will empower the organisation to spread it’s business into the Asian markets and explore new locations for it’s production in China. And also to straighten it’s place in the European market.
Guo Guangchang, chairman of Fosun, said that the leading global initiatives are environmental protection and energy saving techniques, especially in China. He believes that lightweight technology could be effective to decrease energy consumption, lead to sustainable development and that there will be a high demand for advanced, original and top notch quality lightweight products and solutions.
Mr. Huang Yixing, Chairman of Nanjing Nangang said that new materials is one of Nanjing Nangang’s core segment for business transition and that it will become a part of their major business section. It plant to bring synergies and support Koller in it’s expansion and development and create lightweight products that satiate the needs of Asian and Chinese markets.
Mr. Max Koller, CEO of Koller Beteiligungs GmbH, said that they were delighted with being the first automotive partner to invest with the Forum joint venture. Together with Fosun and Nanjing Nangang, they will offer their broad range of lightweight solutions and tooling in the Asian market to existing and new customers.