Luxembourg-based International Automotive Components (IAC; www.iacgroup.com) is to form a joint venture with Chinese state-owned automotive interiors and textiles specialist Shanghai Shenda (Shanghai) to supply soft trim and acoustics products to automotive OEMs.

A UK affiliate of Shenda will acquire a 70% stake in the UK-based jv, which has an enterprise value of USD 570m, while IAC will maintain a 30% interest. The jv, which will be named later, expands an existing, successful jv partnership between affiliates of IAC and Shenda over almost 20 years.

The jv’s management team will be comprised of experienced managers from IAC and its operations will include substantially all of IAC’s soft trim and acoustics operations, consisting of 21 manufacturing facilities and four technical centres worldwide. The new company is expected to generate over USD 1 bn in annual sales from floor carpets, acoustic insulators, package trays, trunk trim and utility flooring products.

Yao Ming Hua, Shanghai Shenda chairman, said: “This new jv will transition Shenda from a regional Chinese soft trim and acoustics products manufacturer to a global supplier to the automotive industry. It will provide access to European and North American markets, complementing our current strong footprint in China.”