Johnson Controls and Yanfeng Automotive Trim Systems have agreed to form a joint venture (JV) to supply automotive interiors.
Named Yanfeng Automotive Interiors, the JV is said to become the largest automotive interiors company in the world. It is expected to generate revenues of $8.5bn.
The company will be based in Shanghai with over 90 manufacturing, global engineering, development and customer centers worldwide.
It will offer instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.
Huayu Automotive Systems' wholly owned subsidiary Yanfeng Automotive Trim Systems will own 70% stake in the JV, while Johnson Controls will have the remaining 30% interest.
Johnson Controls chairman and CEO Alex Molinaroli said: "Combining our global interiors businesses enhances our ability to serve our automotive customers throughout the world.
"This will result in an automotive interiors company with unmatched scale, capabilities and reach."
Subject to receipt of all regulatory approvals, the JV is expected to commence operations in July 2015.
