Valeo, the French automotive components manufacturer on Tuesday said it has acquired a 80% stake in China’s Chery Group lighting company from Chery Technology.
Chery’s subsidiary will keep a 20 percent in what will become a joint venture named Wuhu Valeo Automotive Lighting Systems, based in Wuhu in eastern Anhui province, Valeo said in a statement.
“This operation is in line with Valeo’s growth strategy in China and Asia, which represented 25% of our original equipment sales in the third quarter of 2011 thanks to the acquisition of Niles, and should reach over 30% by 2015, in line with the objectives presented in March 2011,” stated Valeo CEO Jacques Aschenbroich.
The announcement comes shortly after the French components manufacturer reported a 14 percent rise in third-quarter sales.
Quarterly sales, which reached 2.662 billion euros ($3.65 billion), were up 12 percent on a like-for-like basis, Valeo said in a statement.
Valeo said global automotive production remained robust in all regions in the third quarter. For the first nine months of the year, world auto industry output rose 4 percent from the year-ago period, Valeo said.
Valeo shares closed at $19.90 on Monday.