TRW Group (China) Business Report FY ended Dec. 2014
Financial Overview
-In the fiscal year ended December 31, 2014, TRW reached USD 3,131 million in sales in China. Among them, the sales of Shanghai TRW Automotive Safety Systems Co., Ltd.(STASS) reached USD 253.7 million, and the sales of CSG TRW Chassis Systems Co. Ltd.(CTCS) reached USD 361.9 million.
TRW acquired by ZF Friedrichshafen
-In September 2014, TRW announced it entered into a definitive agreement with ZF Friedrichshafen AG (ZF) under which ZF will acquire all outstanding shares of TRW in an all-cash transaction valued at approximately USD 12.4 billion. The transaction is expected to close in the first half of 2015. The Company will operate as a separate business unit of ZF. (From a press release on November 20, 2014)
Divestiture
Divestiture of engine valve business to Federal-Mogul
-In February 2015, TRW closed the sale of its wholly owned engine valve subsidiaries to Federal-Mogul Holdings Corporation. In September 2014, TRW announced that it had entered a definitive agreement to divest its engine valve business to Federal-Mogul's Powertrain division for USD 385 million. The business is a leading developer and supplier of engine valves for passenger car engines, heavy-duty engines and large-bore engines for industrial and marine applications with annual global sales of USD 610 million. 5,400 people are employed in the engine valve business across 12 countries. The sale is evidence of TRW's commitment and focus to its safety portfolio as TRW continues to invest in engineering development and its global manufacturing footprint for both active and passive safety systems.
Contracts
-TRW started supplying its new column-drive electrically powered steering systems (EPS) for Fiat Chrysler Automobiles (FCA) Group major vehicle platforms. The EPS will be mounted on the platforms of ten models in total, including GAC Fiat's Viaggio. (From a press release on November 5, 2014)
-TRW will supply belt-driven electric power steering systems for Great Wall Motor’s new mid-size SUV, starting in 2015. TRW has established a number of production bases in the Asia Pacific region in order to reduce production cost. Over the past two years, the company’s Anting Plant has established a belt-driven EPS assembly line capable of producing 800,000 units per year. The belt driven EPS improves fuel efficiency by 0.3-0.4 liter and reduces emission by 7-8 grams per 1 kilometer drive. (From news releases issued by multiple sources on April 22, 2014)
Investment in China
-Shanghai TRW Automotive Safety Systems Co., Ltd., a subsidiary of TRW, announced that it would lease a plant located in Anting Town, Jiading District, Shanghai by investing CNY 95.2 million. The plant, which is owned by Shanghai Yuepu Development Co., Ltd., has a total floor area of 11,408 square meters on 13,197 square meters of land. The new operation will allow Shanghai TRW Automotive Safety Systems to produce additional 200,000 steering wheels per year for OEMs. The company will hire approximately 400 people for this expansion. (From news releases issued by multiple sources on October 17, 2014)
-TRW Dong Fang (Xi'an) Safety Airbag Inflator Co., Ltd., a subsidiary of TRW, announced that it would invest CNY 100 million in its production expansion project. It will introduce SPI2 EVO inflator technology for side airbags and two new production lines to make these inflators. It will also add another production line and related equipment to manufacture DI10 inflators. (From news releases issued by multiple sources on May 26, 2014)