Changchun Engley Auto Parts, Rio Tinto unit to form JV

Oct. 7, 2009 (China Knowledge) - Changchun Engley Automobile Parts Co Ltd and Alcan Engineered & Automotive Solutions, a unit of Rio Tinto Plc, have agreed to form an auto parts joint venture in Northeast China's Changchun, Jilin Province, sources reported.

The JV, which plans to begin producing components this year, will operate a plant near Shanghai as well as a plant in Changchun.

The financial terms of the agreement were not disclosed, but Alcan indicated that it would be the majority stakeholder.

Because Alcan specializes in lightweight components made from aluminum, it expects to see significant growth in the Chinese market, where energy-efficient cars are becoming increasingly important.

Changchun Engley Auto Parts is China's largest long-glass fiber thermoplastic parts supplier, and has manufactured parts for Mercedes-Benz, Audi, Volkswagen, and General Motors, according to the company's website.