Dana Corp's wholly owned subsidiary Dana Mauritius Ltd (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 about $5 million for this equity interest. It has agreed, subject to certain conditions, to purchase another 46% equity interest in Dongfeng Dana Axle Co 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 around 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established.
Dana has seven other joint ventures in the Asia-Pacific region, including two in China.