PKC Starts JV with Chinese Wire Harness Co.
DAYANG, JIANGSU, CHINA -- PKC's previously announced joint venture with Jiangsu Huakai Wire Harness has begun operations.
The JV was established by Huakai in Danyang, Jiangsu province with an equity value of EUR 22 million. PKC will contribute EUR 22 million via share issues to be financed from cash resources, bringing the total equity value of the JV to EUR 44 million.
Ownership is split evenly between the companies. The joint venture will be consolidated to PKC Group as of the date of PKC’s participation in the joint venture, which in practice means the date when the operations have started.
Upon completion of mandatory approvals, Huakai’s business was transferred to the joint venture.
The joint venture comprises Huakai's current business, which develops and manufactures electrical distribution systems for truck, construction vehicle and bus segments in China. Key customers are Foton (and Beijing Foton Daimler Automotive), Kinglong and Iveco. Foton is the fourth biggest truck manufacturer in China with 11% market share in 2014.
In 2014 the privately held Huakai had revenues of EUR 43 million and was profitable, PKC said.
PKC is one of the world's largest wire harness manufacturers.
