Valeo-Kapec, headquartered in Daegu in South Korea, will have a global manufacturing footprint to become the world leader in torque converters for automatic and continuous variable transmissions.
Each partner will contribute to this Joint-Venture its respective Torque Converter business, located for Valeo at Nanjing (China), Atsugi (Japan), San Luis Potosi (Mexico) and Troy (USA) and located for Kapec in Daegu, Waegwan and Seongju (South Korea).
The new company will employ approximately 3,000 people and will be controlled and fully consolidated by Valeo. It is contemplated that the Joint-Venture will generate around €1 billion sales on an annual basis and will be accretive to Valeo’s operating margin for its first fiscal year.
Valeo-Kapec will capitalize on strong geographic, product and business complementarity to create purchasing, manufacturing and, above all, R&D synergies.
The agreement is subject to approval by the competent authorities.