The automotive lighting and electronics supplier Hella KGaA (Lippstadt, Germany) plans to aligning its electronics business more closely to the major market trends of electric mobility and autonomous driving. In this context, the company will sell its car relay business to the Chinese manufacturer Hongfa.
In the past fiscal year, Hella achieved sales of € 43 million in this area. The object of the transaction is the corresponding development and production activities of the two Hella companies based in Xiamen, China. The closing of the transaction, with a price of around € 10 million, is expected to take place by the end of the year. In the course of this, around 280 employees will be transferred to Hongfa.
Hongfa is one of the world's largest suppliers of relays. In 2018, the company achieved total sales of around 1.2 billion euros.