PKC’s joint venture Jiangsu Huakai-PKC Wire Harness Co., Ltd. has been established and started its operations
PKC Group signed a frame agreement on 28 March 2015 to establish a joint venture with Jiangsu Huakai Wire Harness Co. Ltd. (Huakai). Joint venture Jiangsu Huakai-PKC Wire Harness Co., Ltd. has now been established and it has started its operations.
The joint venture comprises Huakai's current business which develops and manufactures electrical distribution systems to truck, construction vehicle and bus segments in China. The 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 Huakai revenue totalled EUR 43 million with current exchange rate, profitability is at healthy level and at the end of the year 2014 employees amounted to 680. Huakai is a private company owned 100% by family Gu.
President & CEO Matti Hyytiäinen, PKC Group:
The joint venture was established in record time thanks to good cooperation between Chinese government entities, Huakai and PKC. Joint venture will incorporate latest technology from PKC and thus is able to develop solutions and services to meet its existing customers future needs. I’m also glad to inform that a number of new potential customers are in talk with joint venture. I’m confident that joint venture has good opportunity to become market leading supplier and to grow in a profitable manner.
More information about the joint venture in the presentation (March 2015) and in stock exchange release.