SHANGHAI, April 24, 2017 /PRNewswire/ -- The agreement to form a global automotive soft trim and acoustics joint venture announced Dec. 21, 2016 between International Automotive Components (IAC) and Shanghai Shenda Co. Ltd. (Shenda) is subject to certain regulatory approvals. IAC and Shenda have been notified that the National Development and Reform Commission of the People's Republic of China has accepted Shenda's regulatory filing and no further action is required.
"This is a major milestone toward the completion of our transaction and the formation of a new global leader in the automotive soft trim and acoustics segment," said IAC President and CEO Robert ("Steve") Miller. "Shenda will acquire a 70 percent stake in the U.K.-based joint venture and IAC will maintain a 30 percent interest. The joint venture expands an existing, successful joint venture partnership between affiliates of IAC and Shenda spanning nearly two decades."
"We are pleased by this first important regulatory approval and expect to continue making headway on remaining approvals," said Shenda Chairman Yao Ming Hua. "In the meantime, we will continue working diligently toward closing this transaction and launching the new organization, which is expected to occur during the third quarter of this fiscal year."
International Automotive Components (IAC) is a leading global supplier of automotive components and systems, including interior and exterior trim. The company's 2016 sales were $6 billion. Headquartered in Luxembourg, IAC Group operates 77 manufacturing facilities in 18 countries. The company has approximately 100 total locations in 21 countries, including 28 design, technical and commercial centers, and employs more than 31,000 people globally. For more information, visit www.iacgroup.com.
Shanghai Shenda Co., Ltd. is a stated-owned company listed on Shanghai Stock Exchange. It mainly engages in international trade of textile and manufacturing of automotive interior and other industrial textile. Since its establishment in 1986, the company has been keeping a steady pace forward, with around 3,000 staff and 50 subsidiaries devoted to the business.
As the pillar business of Shenda, the automotive interior business division owns approximately 29 subsidiaries across China. Throughout the last two decades, Shenda has developed into one of China's largest automotive interior suppliers, providing soft trim and acoustics products to almost every global OEM.
For more information, please visit http://www.cnshenda.com.cn/en/.
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