Hongfa Group Acquiring Global Relay Business from HELLA

The automotive relay program signing ceremony was held on Nov.11,2019 among Xiamen Hongfa Automotive Electronics Con.,Ltd. (held by Hongfa Group), HELLA  Holding International GmbH and HELLA (Xiamen) Electronic Device Co., Ltd.. Senior management from each side attended the ceremony and witnessed this important and historic moment, including Mr. Guo Manjin, Chairman of the board, President of Hongfa Group, Mr. Li Yuanzhan, Vice President of Hongfa Group, General Manager of Xiamen Hongfa Automotive Electronics Co.,Ltd. Michael Jaeger, board member of HELLA, Executive Vice-President of Electronic Division, Joerg Brandscheid, board member of HELLA， Executive Vice-President of Electronic Division of HELLA China.

Mr. Guo Manjin, Chairman of Hongfa Group Board, President and Michael Jaeger, Member of board of directors of Hella Germany, Executive vice president of the electronics division, signed on Acquisition Framework Agreement.

Xiamen Hongfa Automotive Electronics proposes to acquire from HELLA Holding 100% of the equity interest of HELLA (Xiamen) Automotive Electronics Co., Ltd.(hereinafter referred to as HAE) and proposes to acquire from HELLA (Xiamen) Electronic Device Co., Ltd. (hereinafter referred to as HED) the inventories, production equipment and other assets involved in all the relay business (including SSR and other relay business) of HED.

The scope of this trading covers the relay business of HELLA Group globally. The sales revenue of this business in HELLA was 43 Million Euro in last fiscal year.

HAE and assets from HED acquired by Hongfa has rich experience in automotive relay R&D, production and sales and has served important global OEM customers for a long time. After the trading is completed, Within 5 five years after the Closing Date, HELLA Group shall not, and shall ensure that HELLA Group shall not, directly or indirectly engage in any business that may compete with the relay business of Xiamen Hongfa Automotive Electronics and/or HAE on a global scale.

Mr. Guo Manjin said in his speech that ‘by acquiring HELLA relay business, Hongfa has enhanced our market position  as one of the world’s leading relay manufacturers. This trading secures Hongfa advantage in it’s existing relay industry and will be integrated with our management and technical experience accumulated in relay industry for more than 35 years”.

Hongfa has won consistent praise from international market for it’s open and win-win mind. Hongfa keeps a close eye on automotive industry and seeks cooperation with strong companies to realize efficient allocation of the capital under the globalization environment. It will facilitate the implementation of Hongfa globalization development strategy through various capital operation like merging, holding etc.. It will also accelerate the expansion of Hongfa automotive relay in overseas market and increases Hongfa’s global share. The acquisition is a beginning of successful cooperation and better development for both sides, an important milestone of internationalization of both Hongfa and Chinese relay industry!

In the future, Hongfa will make full use of it’s own resource and advantages, continue innovating and serving global customers with products of excellent quality and satisfying service.

Further Reading

Xiamen Hongfa Automotive Electronics Co.,Ltd. Is one of the world’s largest automotive plug-in relay manufacturers and one of the few manufacturers in China that owns the manufacturing capability for mini PCB automotive relays.

Since founded in 1984, under the corporate spirit of ‘Preserve for Progress, Strive for Excellence ’, Hongfa group has established complete supplying chain and product range in the industry. Hongfa owns 30+ subsidiaries and established three production bases in the east, west and Xiamen-Zhangzhou. Hongfa products cover various categories including relays, low-voltage device, H-L voltage complete set, capacitors, precision parts and automation equipment etc.. The main product Relay has been widely used in industrial, energy, transportation, communication, home appliance and medical areas with an annual output of 2 Billion pcs.

HELLA is a public international company and has more than 125 locations in 35 countries. The sales revenue for last fiscal year is 7 billion Euro. HELLA is one of the leading automotive part suppliers globally. And as expert in automotive lighting and electronic products, HELLA has been important partner in automotive industry and aftermarket for more than 100 years.