German supplier KSGG acquired a 30% stake in RIKEN Auto Parts Co., Ltd., and Riken Auto Parts Co., Ltd. has set up a factory in Huazhong Wuhan to produce piston products.
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KSPG and Riken signed an agreement a year ago to jointly develop and sell light and heavy-duty engines.
This month, China's governing body approved the joint venture and KSPG to purchase shares in the joint venture. As part of the agreement, KSPG also obtained a seat on the company's board of directors.
Riken has set up a factory in Wuhan since 2004. The factory covers an area of ​​12,000 square meters and has 300 workers.