FEUER powertrain and Chinese Haowu-Group agree partnership

German FEUER powertrain, a leading OEM-independent crankshaft manufacturer in Europe, has entered into a comprehensive strategic partnership with Chinese Haowu-Group. Haowu is the parent company of Neijiang Jinhong Crankshaft, a leading crankshaft manufacturer in China and is also active in other areas of the automotive industry.
Under the newly formed partnership, FEUER powertrain and Haowu-Group will pursue the implementation of a Joint Venture in China, which shall bundle the business of both partners for high-end crankshafts in Asia and shall lay the foundation for further growth in the Asian market. Main focus of the cooperation in the Joint Venture shall be especially Western OEM’s. Thereby, the contribution of FEUER powertrain will in particular be its strong technological know-how and excellent access to European and US premium OEM’s, while the contribution of Haowu-Group will especially be its excellent access to the Chinese and other Asian markets and its experience in building and operating efficient production plants in China.
Furthermore, as part of the overall transaction, Haowu becomes a 50% shareholder of FEUER powertrain – which underpins the envisaged long-term perspective of the partnership and also ensures the full alignment of interest among the partners.
In addition, the parties have granted each other options, which allow to potentially buy or sell further ownership stakes in the future. It was agreed not to disclose all transaction details.
Leadership of FEUER powertrain will continue to be in the hands of CEO Bernd Gulden and continuity on the management level is being ensured. Moreover, in connection with the transaction, Bernd Gulden has also given a long-term commitment to remain a significant shareholder of FEUER powertrain.
Together with its new strong partner and against the background of the excellent global presence created by the team-up, FEUER powertrain expects an accelerated continuation of its growth across all locations, which will also be to the benefit of its employees.
Dieter Feuer, founder of FEUER powertrain, commented: “I am delighted that with Haowu-Group we have found an excellent strategic partner, who will support the further growth of FEUER powertrain.”
Mr Guangtong Yan, General Manager and Vice Chairman of Haowu-Group, commented: “The excellent market position of FEUER powertrain in Europe and the US as well as the outstanding technological know-how in combination with the strength of Haowu-Group in Asia will create a truly global player in the crankshaft industry. We are looking forward to the cooperation with the FEUER powertrain team and are convinced that particularly the global clients of both partners will benefit from the possibility, to be supplied by one group in all parts of the world.”
Bernd Gulden, CEO of FEUER powertrain, added: “Following our intensive dialogue throughout the transaction process that was always built on high professionalism and trust, I am now very much looking forward to the operating cooperation with the whole Haowu team. This step is a key for us, to properly unlock and address the growth market China”.
In connection with the transaction, Argonas Corporate Finance Advisors acted as exclusive M&A advisor to FEUER powertrain and its shareholders. Heuking Kühn Lüer Wojtek, Frankfurt, acted as legal advisors on the transaction.