Leoni, a German supplier of wire harnesses and cables, acquired a 51 percent stake in Wuhan Hengtong Automotive Wiring Harness Co., a Chinese manufacturer of wire harnesses.
The acquisition will enable it to become a supplier of the Dongfeng Group and ensure future growth in the Asian market, Leoni said, without disclosing the value of the deal.
The state-owned Dongfeng Group has joint ventures with PSA Group, Nissan Motor Co., Honda Motor Co. and Kia Motors Corp.
Hengtong is headquartered in the central China city of Wuhan. The company supplies Dongfeng Peugeot Citroen Automobile Co., a 50-50 partnership between Dongfeng and PSA.
Leoni entered the Chinese market in 1993. It now has 11 wholly owned plants in the country.