German supplier Hella Group and state-owned Chinese automaker Beijing Automotive Industry Holding Corp. have agreed to establish a 50-50 joint venture to produce lighting in Beijing.
The 30 million euro (255 million yuan) partnership is expected to start operation in September, according to Hella.
After the joint venture becomes operational, Hella will convert its existing wholly-owned lighting subsidiary in Beijing, Hella Beifang Automotive Lighting Co., into a full service center.
Hella says it employs 4,500 people at ten locations in China. In March, the company opened a new plant in Jiaxing. That facility, which cost 581 million yuan, will produce up to three million headlamps and 1.8 million taillights annually.