Bosch Rexroth AG (Bosch Rexroth) and Wuxi Weifu High-Tech Group Co., Ltd. (Weifu Group), located in Wuxi, Jiangsu Province, China, plan to establish a joint venture to develop, manufacture and market specific hydraulic products specifically for the Chinese market. Bosch Rexroth plans to merge its existing subsidiary, Lozo Hydraulics Technology (Suzhou) Co., Ltd. (hereinafter referred to as "Lozo Hydraulics"), into the new joint venture, in which both parties will hold 50 percent of the shares, and the agreement will be signed on August 1, 2022. Both parties agree to keep the details of the agreement confidential. At present, the new joint venture is still subject to approval by various regulatory authorities, including antitrust authorities.
Weifu Group is a well-known manufacturer and listed company of auto parts in China, with about 7,000 employees. Weifu Group is optimistic about the development and future of China's hydraulic market, and has carried out active strategic deployment to expand its business coverage in the field of hydraulics.
"Our strategic cooperation with the Bosch Group has gone through 38 years. Especially in the field of automotive technology, we have not only achieved business success, but more importantly, we have built a culture of trust and understanding. Today, we have strengthened this strategic friendship and joined forces again in the industrial sector to form a new joint venture. This is undoubtedly a new milestone. Based on a pragmatic and orderly business promotion plan and a wide range of highly competitive market-oriented products, I am confident that our cooperation goals will be achieved. This cooperation will open a new chapter for the Bosch Group, Bosch Rexroth, and Weifu. Mr. Wang Xiaodong, chairman of Weifu Hi-Tech, said.
Bosch Rexroth established Lozlink Hydraulics in 2021 with the aim of deepening its mobile and industrial hydraulics business in China. With the cooperation with Weifu Group, Bosch Rexroth will also integrate Lozel Hydraulics into the new joint venture. "The new joint venture will combine the strengths of both parties to bring cost-effective products to local customers while providing responsive services. I am confident that this cooperation will also contribute to the sustainable growth of Bosch Rexroth's overall business in the future." Mr. Liu Huowei, President of Bosch Rexroth China, said.
The two partners will integrate their respective resources to develop and manufacture products that meet the needs of the local market at a competitive cost. In its current infancy, its product portfolio is mainly derived from Lozel Hydraulics. The products cover a variety of pumps, motors, hydraulic valves, etc., and the application industry is involved in many fields of mobile machinery and industrial hydraulics.
The joint venture will sell directly to the local market and will build its own service network. The sales and management functions will be located in Shanghai, while production and R&D will be carried out at the Weifu plant in Nanjing.
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