Autoneum is acquiring a 70% share of Jiangsu Huanyu Group, a leading supplier of acoustic and thermal insulation components to the automotive industry in China.

The move will expand Autoneum’s customer base to include major Chinese vehicle manufacturers such as BYD, BAIC and GAC, and will significantly increase its annual revenue. The transaction is scheduled to close in March 2025.

With around 30 million light vehicles produced annually, China is the world’s largest automotive market and with an expected increase to 32.4 million cars in 2030, it is also one of the industry’s most important growth markets.

Established in 2001, Jiangsu Huanyu is today one of China’s leading suppliers of lightweight components for the industry, operating 14 production facilities with around 1,100 employees in the immediate vicinity of car manufacturers in the north, west and southeast of China.

Its portfolio includes components such as carpets, inner and outer dashes, headliners, trunk and interior trim, wheelhouse outer liners and insulation for the engine bay and underbody. It also supplies commercial vehicle manufacturers, supporting Autoneum’s aim of growing its truck business in China. Synergies in the areas of technology and purchasing will also contribute to the further development of business in Asia.

In its 2023 financial year, Jiangsu Huanyu generated revenue of around CHF 130 million and is recording strong growth in 2024.

The acquisition will be done in two phases. The closing of phase one, the takeover of a majority stake of 70% at a purchase price of around CHF 75 is expected in March 2025 after approval by the authorities. For the acquisition of the remaining 30% of the share capital, Autoneum has a call option, which can be exercised in 2028. This two-phase approach binds in both current shareholders and employees in key positions and will allow Autoneum and Jiangsu Huanyu to further develop existing business activities smoothly.

“Jiangsu Huanyu has broad customer access to the largest local vehicle manufacturers in China,” says Autoneum CEO Eelco Spoelder. “With its plants in the key automotive hubs in China, the company is an excellent strategic addition to Autoneum and brings us a significant step closer to our medium-term target of generating 20% of group revenue in Asia. It not only gives us access to an established customer base in China, but also allows us to further expand our presence and gain strong influence in the booming automotive hubs of Anhui and Shaanxi.”

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