Rheinmetall and Riken set up joint venture in China

Friday, Sep 18, 2015

Germany's Rheinmetall and Japan's Riken have agreed to set up a joint venture to make piston rings in the province of Hubei in central China, Rheinmetall said on Friday.

The German automotive and defence group said the venture, which would produce mainly for automotive customers in China, would consolidate its worldwide alliance with Riken, with whom it already has a strategic alliance.

Under the agreement, Rheinmetall's subsidiary KS Kolbenschmidt will take 30 percent of the shares in Riken Automobile Parts (Wuhan) Co. Ltd and have a seat on the management board. No financial details were disclosed.