Standard Motor forms JV with Foshan Guangdong Automotive Air Conditioning Co.
Standard Motor Products announced that it has formed a joint venture with Foshan Guangdong Automotive Air Conditioning Co., a China-based manufacturer of air conditioning compressors for the automotive aftermarket and the Chinese Original Equipment market. Standard Motor Products will invest approximately $12.5M in the 50/50 joint venture. The new company is named Foshan FGD SMP Automotive Compressor Co., LTD. Eric P. Sills, Standard Motor Products' CEO and President, stated, "We believe that this transaction will enhance our position as a basic low-cost manufacturer and a leading supplier of temperature control parts to the aftermarket, as well as provide SMP with growth opportunities in the rapidly expanding China market. We welcome FGD into the Standard family. We believe the transaction will be accretive to earnings in year one, excluding one-time integration costs."