German supplier Hella plans to sell its relay business unit in the east China port city of Xiamen to a local Chinese company Hongfa Electroacoustic before the end of this year.
The deal, priced at around 10 million euros (77.3 million yuan), will allow it to “align its electronics business even more closely along the major market trends of electric mobility and autonomous driving,” Hella said this week.
Under the deal, its relay plants in Xiamen along with roughly 280 employees will be taken over by Hongfa, the German supplier.
Hongfa, based in Xiamen and listed on the Shanghai Stock Exchange, makes relays for automobiles and other sectors including railways, home appliances and media equipment. In 2018, it made a net profit of 699 million yuan on revenue of 6.9 billion yuan.