Sumitomo Corp., Y-TEC to Make Chassis in Changchun

Sumitomo Corporation and Y-TEC Corporation, which is Hiroshima based chassis supplier for Mazda Motor Corporation, announced on Monday they established a joint venture in Changchun, China to make automotive parts. They already started the construction of the plant supplying the chassis parts for China FAW Group’s FAW Car Co. They try to establish high quality auto-parts supply base by introducing Y-TEC’s technology. Y-TEC and Fawer Automotive Parts Company, which is parts provider for FAW Group, have 40% interests each in the JV with 95 million yuan of capital. Sumitomo Corp. has 20% share in the JV. FAW Car produces Mazda’s M6 or Atenza in Japan under the technological partnership with Mazda. FAW plans to produce more Mazda models. Chinese automakers increase local procurement of parts when Chinese government tries to increase the local contents under the growing domestic vehicle output.