Family-run Huf Group from Velbert, Germany, and Chinese automotive supplier Baolong from Shanghai are to tie-up to establish a joint venture in the field of tyre pressure monitoring systems (TPMS). The aim is to accelerate growth through joint activities in the areas of development, purchasing, production and sales and to achieve a leading market position. Baolong will have 55% in this joint venture with Huf holding the other 45%.
The new company will be launched on 1 January 2019. The Huf Group will contribute its tyre pressure monitoring systems business to the joint venture. It consists of the two divisions OE (Original Equipped) and IAM (Independent After Market) with around 224 employees and locations in Germany, the US and China. Baolong will contribute its tyre pressure monitoring system division with locations in Shanghai and Wuhan as well as a total of approx. 400 employees.
As a family business with over 100 years of tradition, Huf is one of the world’s leading automotive suppliers and a sought-after partner of the automotive industry. Customers appreciate Huf for its high-tech orientation, for competent and creative solutions and for its worldwide presence. Huf was the first company to develop components for the new vehicle access and driving authorisation systems. In the field of tyre pressure monitoring systems Huf develops and produces products and solutions for car and truck manufacturers all over the world and is one of the pioneers in the development of modern directly measuring tyre pressure control systems. More than 20 years ago, the first electronic tyre pressure monitoring system was developed for well-known automobile manufacturers.
Baolong is a listed automotive supplier headquartered in Shanghai, China. Founded in 1997, the company has been developing and manufacturing automotive products and solutions. Today, the company has developed into one of the world’s leading suppliers of tyre valves. Baolong manufactures tyre valves, exhaust pipes and tyre pressure monitoring systems as well as other products with several production bases, R&D centres or sale centres located in China, the US, Germany, Poland and Japan among others. In the field of tyre pressure monitoring systems, the company started the development from 2002 and grew rapidly in the following years. Today, the company is regarded as the market leader in this area in China.
The joint venture will closely integrate the activities of both companies at their locations in Germany, China and the US and offer customers worldwide an even wider range of products and solutions.
Charles Zhang, President of Baolong and Dr. Lars Placke, Senior Vice President and Head of Business Unit Tire Monitoring & Aftersales Solutions at the Huf Group, will lead the joint venture as Chairmen of a five-member Board of Directors. In addition, there will be a four-man Executive Team with Miller Feng as CEO (Baolong), Axel Hummel as CFO (Huf), Ralf Kessler as CTO (Huf) and Arno Fuchs as COO (Huf).
Tyre Pressure Monitoring Systems (TPMS) monitor tyre pressure in motor vehicles to prevent accidents caused by incorrect tyre pressures. In addition, optimum tyre pressure can save fuel and avoid unnecessary tyre wear.