Spanish supplier CIE Automotive SA says its Autometal SA subsidiary will take a 50 percent stake in Nanjing Automotive Forging Co. to produce crankshafts in China.
Autometal, of Brazil, has agreed to form a joint venture with Donghua Automotive Industrial Co., which owns a controlling share of Nanjing Forging.
Autometal will invest 17 million euros (140.7 million yuan) in the venture. The deal is subject to approval by Chinese regulators and Autometal's shareholders.
The partnership will give Donghua access to the Brazilian market.
CIE, of Bilbao, Spain, has produced stamped components in China since 2006.
Donghua is a unit of the state-owned Shanghai Automotive Industry Corp.