MILWAUKEE (AP) — Wisconsin-based Johnson Controls is teaming up with a Chinese company to create the world's largest maker of automotive interiors, in a deal announced Sunday.
The joint venture between Johnson Controls and China-based Yanfeng Automotive Trim Systems will be based in Shanghai. The new company will make instrument panels, interior systems, door panels and floor consoles, and is expected to have $7.5 billion in annual sales.
Alex Molinaroli, Johnson Controls' chairman and CEO, said in Sunday's statement that the combined company will be well-positioned for sustained growth around the world.
"This also aligns with Johnson Controls' corporate commitment to China, which is increasingly becoming a major center for the global automotive industry," he said.
Yanfeng, a subsidiary of Huayu Automotive Systems, will have a 70% stake in the new company. Johnson Controls will have a 30% stake. The transaction is subject to limited conditions, and is expected to close in the first half of next year.
Shares of Johnson Controls closed Friday at $44.78. The stock has traded in a 52-week range of $34.40 to $52.50.
Johnson Controls, headquartered in Milwaukee, has 170,000 employees. The company also makes car seats and batteries for hybrid and electric vehicles.