Halla Visteon Climate Control Signs Agreement to Acquire Majority Equity in China Joint Venture

Jun 03, 2014, 20:00 ET from Halla Visteon Climate Control Corp.

DAEJEON, South Korea, June 3, 2014 /PRNewswire/ -- Halla Visteon Climate Control Corp. (KS: 018880) today announced the company has reached an agreement to acquire an ownership stake in Japan Climate Systems (JCS) Nanjing of 51 percent and become the majority shareholder. The cash transaction, valued at $6.4 million (6.5 billion Korean Won), is subject to adjustments and expected to be finished in the third quarter of 2014, after certain local regulatory and other processes are completed.

Established in 1987 as a joint venture, Japan Climate Systems (JCS) currently has an ownership structure evenly distributed among HVCC, Mazda and Panasonic. The company is based in Higashi-Hiroshima City, and has three wholly owned manufacturing facilities (Nanjing, China; and Hiroshima and Yamaguchi in Japan) and operations in Malaysia and Mexico. JCS Nanjing manufactures heat exchangers for automotive applications.

Acquiring this ownership stake in JCS Nanjing demonstrates HVCC's commitment to address expansion and serve the growing number of customers in China. HVCC currently operates 11 manufacturing facilities (Beijing, Dalian, Jinan, Wuhu, Chongqing, Nanchang, Changchun, Chengdu, Foshan, Nanjing and Yancheng) and one engineering center (Shanghai) in China.  Spanning the country, these operations enable the company to support customers in respective regions in close proximity.

"We are pleased to have reached an agreement to acquire the majority equity stake in JCS Nanjing," said HVCC President and CEO YH Park. "This move leverages our longstanding relationship with JCS and strengthens our ability to deliver shareholder value by supporting automakers in the growing China market."

About Halla Visteon Climate Control

Halla Visteon Climate Control (HVCC) is a full-line automotive supplier of climate systems and components. Products include heating ventilation and air conditioning; compressors; powertrain cooling; fluid transport; and electric, hybrid and fuel cell vehicle thermal systems. With 35 manufacturing sites supported by four global technical centers in 19 countries, HVCC employs nearly 14,500 people.

HVCC is a 70-percent owned subsidiary of Visteon Corporation (NYSE: VC) and is traded on the Korea Stock Exchange. Learn more at www.hvccglobal.com.

About Visteon

Visteon is a leading global automotive supplier delivering value for vehicle manufacturers and shareholders through businesses including Halla Visteon Climate Control Corp., Visteon Electronics and Visteon Interiors. Visteon designs, engineers and manufactures innovative components and systems for virtually every vehicle manufacturer worldwide. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; Visteon has facilities in 29 countries and employs about 24,000 people. Visteon had sales of $7.4 billion in 2013. Learn more at www.visteon.com.

SOURCE Halla Visteon Climate Control Corp.