Shanghai Shenda and IAC Group form soft trim and acoustical products JV
Shanghai Shenda Co., Ltd. and International Automotive Components (IAC) Group have officially closed a joint venture transaction, forming Auria Solutions, Ltd. – a new global supplier of soft trim and acoustical products for the automotive industry.
“We’re very pleased to have completed this transaction and launched the next global leader in the soft trim and acoustics segment”, said IAC President and CEO Robert (“Steve”) Miller. Shenda has acquired a 70 % stake in the joint venture and IAC maintains a 30 % interest. The joint venture expands an existing, successful joint venture partnership between affiliates of IAC and Shenda spanning nearly two decades.
“The completion of this transaction not only marks the beginning of a new global start-up company, Auria, but it also builds on what has been a very strong and productive partnership between IAC and Shenda in China,” said Shenda Chairman Yao Minghua.
The UK-based Auria will have its regional headquarters in Southfield, MI, USA, and Düsseldorf, Germany, and will operate 21 manufacturing facilities and four technical centres in ten countries along with operational control of three joint ventures across China, South Africa and the USA. The company will employ approximately 7,000 people and will supply all of the world’s global automakers, as well as several regional manufacturers.
Brian Pour, President and CEO of Auria, said: “This is a unique opportunity for everyone involved – our employees, customers and suppliers included, as we have an ownership group committed to growing the company, an experienced leadership team, a solid foundation of manufacturing excellence and product innovation, and an established position in the segment.”
Auria’s automotive product lines will include highly-engineered soft trim and acoustical solutions focused on creating the comfortable automotive interior environment customers demand.
“Our products are well-suited for the future of the industry,” Pour said. “As vehicles move toward more electrification and hybridisation, lighter weight materials and a quieter cabin will become even more important, while car-sharing and ride services will require more durable flooring and trim materials to withstand the increased use.”
Separate from Auria, IAC will continue to focus on its core product portfolio, including instrument panel and cockpit systems, door trim systems, console systems and overhead and headliner systems.