Magneti Marelli, a world-renowned auto parts supplier, and Shanghai Highly (Group) Co., Ltd. (hereinafter referred to as “Highly Group”), the world’s leading white goods and new energy vehicle core components and heating and cooling related product research and development manufacturers under Shanghai Electric ) Recently announced an agreement on an auto parts joint venture project.
This project includes the divestiture and reorganization of Magneti Marelli’s assets and businesses of automotive air-conditioning compressors and air-conditioning systems (with a business scale of 91.7 billion yen in 2019), and the establishment of Magneti Marelli Hong Kong as the main body of integrated target assets and business. Highly Group acquires Magneti Marelli 60% equity. The transaction is scheduled to be completed on January 4, 2021. After the completion of the project, the joint venture company was renamed Haili Marelli Holdings Co., Ltd. (hereinafter referred to as “Hili Marelli”).
Haili Marelli is committed to R&D, manufacturing, and sales of world-class automotive air conditioning systems and new energy vehicle thermal management systems overall solutions, making full use of the advantages of both parties in the field of auto parts, exerting synergies and expanding the global market. The company is registered in Hong Kong, China, and its operating headquarters are located in Shanghai, China and Saitama, Japan. The number of employees is approximately 4,300. The business is distributed in Japan, China, other parts of Asia, Europe and North America.
Mr. Zheng Jianhua, Chairman of Shanghai Electric, the controlling shareholder of Highly Group, said: “At present, the global auto industry is facing a major transformation, and the development of new energy vehicles is in the ascendant. To become the world’s leading system supplier. Highly has a leading advantage in new energy vehicle compressor technology and market, Magneti Marelli has a leading position in the global market for auto parts, and the combination of the two will create greater value for customers.”
Beda Bolzenius, CEO of Magneti Marelli, said frankly: “For Magneti Marelli, this cooperation is exciting and strategic. Through cooperation, we have been able to enter the growing Chinese market in a short period of time and will further promote our technology in automotive electrification. To achieve greater synergy, provide our customers with higher value and create more development opportunities for our employees. Highly enjoys a high reputation in China and has a high brand awareness, while Magneti Marelli is in technology and manufacturing. Keep improving, the combination of the two parties undoubtedly has great potential. This is another big step that we have taken on the road to becoming a leading Tier 1 supplier in the world.”
Highly Group has five core industries of “compressors, motors, auto parts, drive control, and cooling and heating related”. The market share of air-conditioning compressors ranks third in the world. Electric compressors for new energy vehicles lead the market, with products in 165 countries around the world And hundreds of millions of families in the region. Highly Group has 13 factories and 14 R&D and technical service centers worldwide, 11,000 employees, and sales revenue of 12.1 billion yuan in 2019.
Magneti Marelli is known for its innovation and manufacturing excellence (Monozukuri), shouldering the mission of changing the future of travel, and working with customers and partners to create a safer, more environmentally friendly and more connected world to change the future of travel. Magneti Marelli has approximately 60,000 employees worldwide, 170 facilities and R&D centers in Asia, the Americas, Europe, and Africa, with sales revenue of 13.4 billion euros in 2019.