Dana Corp. said its subsidiary, Dana Mauritius Limited, has closed on the purchase of 4 percent of the registered capital of Dongfeng Dana Axle Co. Ltd. from Dongfeng Motor Co. Ltd. and certain of its affiliates.
Dana Mauritius paid approximately $5 million for this equity interest.
Under the agreement, Dana Mauritius will purchase an additional 46 percent equity interest in Dongfeng Dana Axle Co. Ltd. within the next three years for approximately $55 million.
Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle's commitment to providing its customers with world-class manufacturing processes and axle components and systems.
"We are very pleased to complete this transaction with Dongfeng," said Frank Sheehan, vice president of sales, marketing and product planning for Dana's Heavy Vehicle Products group. "This joint venture is a big step forward in achieving Dana's aggressive Asia Pacific growth strategy."
Dana has seven other joint ventures in the Asia-Pacific region, including two in China. With more than 4,300 employees in 18 facilities in the region, Dana produces axles, propshafts, structures and sealing and thermal-management products for a host of light- and heavy-vehicle manufacturers.
Dana Mauritius paid approximately $5 million for this equity interest.
Under the agreement, Dana Mauritius will purchase an additional 46 percent equity interest in Dongfeng Dana Axle Co. Ltd. within the next three years for approximately $55 million.
Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle's commitment to providing its customers with world-class manufacturing processes and axle components and systems.
"We are very pleased to complete this transaction with Dongfeng," said Frank Sheehan, vice president of sales, marketing and product planning for Dana's Heavy Vehicle Products group. "This joint venture is a big step forward in achieving Dana's aggressive Asia Pacific growth strategy."
Dana has seven other joint ventures in the Asia-Pacific region, including two in China. With more than 4,300 employees in 18 facilities in the region, Dana produces axles, propshafts, structures and sealing and thermal-management products for a host of light- and heavy-vehicle manufacturers.
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