Joint venture for piston rings in China
Rheinmetall subsidiary KS Kolbenschmidt and Riken extending their Alliance
KS Kolbenschmidt GmbH, which is part of the Rheinmetall Automotive division (KSPG AG), and Japan's Riken Corporation have agreed to set up a joint venture for the manufacture of piston rings in the Chinese province of Hubei.
A shareholder agreement for the envisaged joint-venture has now been signed. Under this agreement, KS Kolbenschmidt will take over 30 percent of the shares in Riken Automobile Parts (Wuhan) Co. Ltd. The two market leaders in piston and piston ring technology will therefore further consolidate their worldwide alliance. The transaction is subject to the approval of the relevant authorities.
The company is located on a 12,000 m² production facility in Wuhan, China. Riken has been running this business since 2004 and currently employs a workforce of 300. Products from the company are chiefly for automotive customers in China. As part of the shareholder agreement, KS Kolbenschmidt will have a seat on the management board of the company.
In April 2015, the two parties had already signed an agreement on the joint development and marketing of piston system assemblies for light and heavy-duty engines for automotive and industrial applications.
The prime engineering objectives of the alliance are to help both companies’ customers reduce CO2 emissions and improve durability of their engines as well as lower total ownership costs. In the process, KS Kolbenschmidt and Riken will be optimizing their piston assembly solutions for their joint customers worldwide and coordinating their regional marketing and development efforts as well as customer technical support.
About KSPG AG
KSPG AG (Kolbenschmidt Pierburg), which represents the mobility sector within the Rheinmetall Group, has annual sales of €2.45 billion (2014) and ranks among the 100 biggest auto-industry suppliers worldwide. Some 11,000 employees at around 40 production plants in Europe, the Americas, Japan, India and China develop and manufacture components, modules and assemblies for the drive systems of present and future vehicles.
This first-tier supplier, present on the international automotive markets, consists of three divisions: Hardparts, Mechatronics, and Aftermarket.
Clustered under the Kolbenschmidt brand is the business of KSPG's Hardparts division comprising car and commercial vehicle pistons, large-bore pistons, engine blocks, cylinder heads, and structural parts in aluminum. Also included are other castings, plain bearings and continuous castings.
Under the Pierburg brand, KSPG's Mechatronics division specializes in modules and assemblies for emission control, solenoid valves, actuators and valve train systems, oil, water and vacuum pumps for cars, trucks and off-road vehicles.
Last but not least, the Aftermarket division under the Motorservice brand embraces the global aftermarket business of the Group's and third-party products in over 130 countries. As a foremost supplier of engine components Motorservice offers its customers an extensive lineup of engine parts from a single source.
Riken Corporation is a listed company headquartered in Tokyo. Annual sales in 2014 added up to 72 billion yen. Founded in 1927, the company has an extensive product portfolio focusing on engine and motor vehicle components including piston rings, seal rings, camshafts, valve seats/lifters and chassis castings.
Riken employs some 4,000 people worldwide at 10 manufacturing operations in 7 countries outside of Japan.
Rheinmetall AGDr. Philipp von Brandenstein
Head of Corporate Communications
Rheinmetall Platz 1
Phone: +49 211 473-01
Fax: +49 211 473-4158