Dana Corporation and Dongfeng Motor Co. Ltd. Complete Joint Venture to Produce Commercial Vehicle Axles in China
Jul 9, 2007
SHANGHAI, China – July 9, 2007 – Dana Corporation (OTCBB: DCNAQ) announced today that effective June 30, 2007, Dana's wholly owned subsidiary Dana Mauritius Limited (Dana Mauritius) has closed on the purchase of 4% of the registered capital of Dongfeng Dana Axle Co., Ltd. (a Chinese commercial vehicle axle manufacturer formerly known as Dongfeng Axle Co., Ltd.) from Dongfeng Motor Co., Ltd. and certain of its affiliates under a Sale and Purchase Agreement, as amended, among the parties that has been reported previously.
Dana Mauritius paid approximately $5 million for this equity interest.
Under the Sale and Purchase Agreement, as amended, Dana Mauritius has agreed, subject to certain conditions, to purchase an additional 46% equity interest in Dongfeng Dana Axle Co., Ltd. within the next three years for approximately $55 million.
Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China’s largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ approximately 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle’s commitment to providing its customers with world-class manufacturing processes and axle components and systems.
“We are very pleased to complete this transaction with Dongfeng,