Ningbo Auto Parts Enterprise Makes Big Deal Again

Ningbo Huaxiang spent nearly 30 million euros to acquire German counterparts in the auto parts industry in Ningbo, and renewed its internationalization. Yesterday afternoon, Ningbo Huaxiang Electronics Co., Ltd. and Germany's Sellner Group signed an agreement at Ningbo Marriott Hotel to invest nearly 30 million euros in the acquisition of foreign assets and business.

Ningbo Huaxiang is an auto parts factory specializing in the R&D, production, sales and after-sales service of mid- to high-end cars. It was successfully listed on the Shenzhen Stock Exchange in 2005. As of the end of 2010, it had total assets of 4.04 billion yuan and net assets. 2.97 billion yuan. In the next five years, Ningbo Huaxiang will set its goal as the top three in the domestic automotive trim industry. It plans to complete the globalization strategy in Asia, the Americas, and Europe and become an international professional auto parts company.

Headquartered in Bavaria, Germany, the Cerna Group was established in 1945. It is an industry leader in interior trim and functional parts for high-grade passenger cars and the second largest supplier of interior trims for natural mahogany luxury cars in the world, with 20% of the world's total. Market share has established long-term supply relationships with well-known automobile manufacturers in Europe and North America, including BMW, Daimler, Volkswagen, Audi, General Motors, Ford, etc., and has manufacturing bases and sales service centers in many countries. The acquisition is its core business, natural peach and plastic automotive interiors business.

Through this acquisition, Ningbo Huaxiang will add a number of overseas production bases such as the United States, Germany, and the Czech Republic, which will occupy the second position in the global automotive interior trim market share. “We will introduce overseas operations teams, accelerate the organic integration of both parties, improve the international distribution, and challenge the industry leader.” said Zhou Xiaofeng, chairman of Ningbo Huaxiang. After attending the signing ceremony, a German BMW company representative stated that Ningbo Huaxiang has extensive experience and advanced technology in the production and manufacture of wooden interior parts. He hoped that the two parties can further consolidate the cooperative relationship and achieve a win-win situation.

In July of this year, another city auto parts and components company, Ningbo Shengsheng Investment Group, acquired a majority stake in Puri, involving an amount of more than 1 billion yuan, which is the largest case of overseas M&A in Ningbo.