Dana Corporation 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.
Dana Mauritius paid approximately $5 million for this equity interest.
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.
“We are very pleased to complete this transaction with Dongfeng,” said Frank Sheehan, vice president of sales, marketing and product planning for Dana’s Heavy Vehicle Products group. “This joint venture is a big step forward in achieving Dana’s aggressive Asia Pacific growth strategy.”
Dana has seven other joint ventures in the Asia-Pacific region, including two in China.