GRAMMER Aktiengesellschaft
Grammer AG and Ningbo Jifeng Auto Parts plan strategic partnership
DGAP-News: Grammer AG / Key word(s): Corporate Action
Grammer AG and Ningbo Jifeng Auto Parts plan strategic partnership Strategic partnership between Ningbo Jifeng and Grammer to improve future joint competitive position in particular in the Chinese automotive market A Ningbo Jifeng associated company subscribes to a EUR 60 million mandatory convertible bond representing approximately 9.2% of the current share capital of Grammer AG under the exclusion of subscription rights
Strategic partnership for joint expansion of Chinese business The partnership will also improve both companies’ access to local and international OEMs. Grammer will be able to access local automotive OEMs in China as well as alternative distribution channels and benefit from improved purchasing conditions. Ningbo Jifeng will be able to tap into the global resources, access and know-how of Grammer through the partnership. As the largest and most rapidly growing automotive market worldwide, China offers great potential for Grammer. Currently, the Chinese market accounts for approximately 15% of Grammer’s global automotive revenues. Ningbo Jifeng and Grammer will continue to explore the possibility of joint projects as well as joint ventures in the Chinese and potentially other markets. Automotive OEMs welcome joint partnership Ningbo Jifeng’s associated company subscribes to a mandatory convertible bond, which will enlarge the shareholder base of Grammer AG “We have been operating our own plants in China for many years and want to substantially expand our presence in the world’s largest market for commercial and passenger vehicles. There is significant growth potential in China and we are very pleased to have Ningbo Jifeng as a strong partner for our automotive business in China. The future strategic partnership will open up additional possibilities for us to reach and supply additional local Chinese customers with our innovative products,” says Hartmut Müller, CEO of Grammer. “At the same time, an associated company of Ningbo Jifeng will become a new shareholder enlarging Grammer’s shareholder base in the interests of all shareholders, customers and employees,” Hartmut Müller added. “Grammer enjoys an outstanding international reputation as a leading, innovative supplier. As a result, we are very proud to enter into the envisaged joint partnership. Our group’s investment in Grammer solidifies our strategic partnership and we are in full support of the successful course which Grammer’s management team has been pursuing over recent years,” said Yiping Wang, CEO and Chairman of Ningbo Jifeng Auto Parts. Business Description of Ningbo Jifeng Auto Parts Co. and Grammer AG Grammer AG is a global components supplier serving the automotive and commercial vehicles industry and specializes in the development and production of components for automotive interiors as well as seat systems for offroad vehicles, trucks, buses and railway. With over 12,000 employees, the Grammer Group operates roughly 40 facilities globally, in which it produces headrests, armrests and center consoles for the automotive market as well as suspended driver and passenger seats for commercial vehicles. The Grammer Group realized revenue of around EUR 1.7 billion in 2016. Grammer has been listed on the stock exchange since 1996 and currently has a market capitalization of around EUR 650 million.
About Ningbo Jifeng Auto Parts Co., Ltd. Incorporated in 1996, Ningbo Jifeng Auto Parts Co., Ltd. is domiciled in the Eastern Chinese coastal city of Ningbo. In the automotive segment it specializes in the production and assembly of headrests as well as seat and door armrests predominantly for passenger vehicles. Its customers include international premium automotive OEMs. Ningbo Jifeng has around 2,600 employees at a total of eight production sites in China, Europe and Canada. In 2015, it achieved revenue of a total of around EUR 140 million. China accounts for 87 percent of its business and the United States, Europe and Japan for 13 percent. Ningbo Jifeng is listed on the Shanghai stock exchange under ISIN CNE100001V94. About Grammer AG Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems and high-quality interior components and operating systems to premium automakers and automotive system suppliers. The Seating Systems Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats. With over 12,000 employees in 32 fully consolidated companies Grammer operates in 20 countries around the world. The Grammer Group realized revenue of circa EUR 1.7 billion in 2016. Grammer shares (ISIN DE0005895403) are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra. Contact: GRAMMER AG Ralf Hoppe Phone: 0049 9621 66 2200 investor-relations@grammer.com
14.02.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Grammer AG |
Georg-Grammer-Str. 2 | |
92224 Amberg | |
Germany | |
Phone: | +49 (0)9621 66-0 |
Fax: | +49 (0)9621 66-1000 |
E-mail: | investor-relations@grammer.com |
Internet: | www.grammer.com |
ISIN: | DE0005895403, DE0005895403 |
WKN: | 589540, 589540 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |