China Kunda Technology Holdings, the provider of precision moulds, plastic injection parts and in-mould-decoration (IMD) products to the car and electronics, says wholly-owned subsidiary, Kunda Mould (Shenzhen) Company, has entered into a strategic Joint Venture (JV) with Beijing Baiju Electrical Appliance Co. to manufacture, sell and supply auto components.

China Kunda will take a majority 57% stake in the new JV, Beijing Baiju Automobile Component Co., through a capital injection of RMB28.5 million ($5.9 million). Beijing Baiju will subscribe for the remaining 43% of RMB 21.5 million, by injecting their existing production equipment and other related equipment valued at RMB 23.8 million but get back RMB 2.3 million in cash.

China Kunda says Beijing Automobile Component is set to benefit from the ready sales channels inherited from Beijing Baiju’s years of dealing with Beijing Mobis Zhong Che Automobile Component Co., which is a major automobile component supplier of Beijing Hyundai Automobile Co.. Combined with China Kunda’s precision moulds, Beijing Automobile Component will be able to compete for contracts for more complex products, capitalising on the strong growth momentum of the China’s car market.