Joint venture for piston rings in China
KS Kolbenschmidt GmbH, a wholly owned subsidiary of KSPG AG (a member of the Rheinmetall Group) and Japan's Riken Corporation have agreed to set up a joint venture for the manufacture of piston rings in the Chinese province of Hubei.
A shareholder agreement for the envisaged joint-venture has now been signed. Under this agreement, KS Kolbenschmidt will take over 30 percent of the shares in Riken Automobile Parts (Wuhan) Co. Ltd. The two market leaders in piston and piston ring technology will therefore further consolidate their worldwide alliance. The transaction is subject to the approval of the relevant authorities.
The company is located on a 12,000 m² production facility in Wuhan, China. Riken has been running this business since 2004 and currently employs a workforce of 300. Products from the company are chiefly for automotive customers in China. As part of the shareholder agreement, KS Kolbenschmidt will have a seat on the management board of the company.
In April 2015, the two parties had already signed an agreement on the joint development and marketing of piston system assemblies for light and heavy-duty engines for automotive and industrial applications.
The prime engineering objectives of the alliance are to help both companies’ customers reduce CO2 emissions and improve durability of their engines as well as lower total ownership costs. In the process, KS Kolbenschmidt and Riken will be optimizing their piston assembly solutions for their joint customers worldwide and coordinating their regional marketing and development efforts as well as customer technical support.