Korea’s HL Mando launches auto parts JV with China’s Tianrun

HL Mando Corp., an electric vehicle and self-driving system developing unit of South Korea’s HL Group, said on Thursday it has launched an auto parts joint venture specializing in commercial vehicles with China’s Tianrun Industrial Technology Co. to expand its global business.

The two companies established Tianrun Mando, in which the Chinese auto parts maker has a 60% stake and the South Korean company holds the rest. Tianrun invested 60 million Chinese yuan ($8.3 million) in the joint venture based in Shandong, China, while HL Mando spent 40 million yuan, according to the two partners.

Tianrun Mando targets the global market of electric power steering for commercial vehicles. The company is set to focus on China, the world’s second-largest commercial vehicle market, before expanding the business to other countries.

The joint venture plans to introduce a ball-nut type electric power steering (BN-EPS) lineup for trucks and buses by 2026.

BN-EPS is regarded as a next-generation electric steering system as the component uses energy only when necessary to reduce emissions while improving fuel efficiency and output.

Write to Jin-Won Kim at jin1@hankyung.com
 

Jongwoo Cheon edited this article.