TRW Automotive Holdings Corp. will soon be establishing three production plants and facilities in China by the end of the current year. This company that is engaged in supplying safety components will soon be acquired by ZF Friendrichshafen AG, a Germany based company. The fact that the company will be setting up these three facilities in China indicates that the company has been investing on a regular basis in China and is also committed to supporting the swift growth of this expanding automotive market in this region.
It is anticipated that with the setting up of the new facilities, the company will finally report a total of twenty five operations in the China market and will also have a surplus of 10000 employees from the time the operations of the company commenced more than two decades ago. Independently, TRW expressed that it had agreed on selling its suspension and linkage business generating yearly revenue worth US$550 million to THK Co., which is a Tokyo conglomerate, for a sum of US$400 million. By the third quarter of TRW, it is anticipated that the divestiture will finally close down.
According to the CEO of TRW, the business sale prevents the overlap that is bound to take place in most market positions. In September, Germany based ZF had agreed on acquiring TRW for a value worth US$13.5 billion which also included the debt amount. By the 1st half of the current year, the deal is anticipated to close. After completion, this transaction is anticipated to make ZF the second biggest supplier of parts of original equipment in the entire world. following Robert Bosch Gmbh. Two out of all the three plants will be located in Jiangsu, within the same campus of Zhanghjiagang.