Racine-based Modine Manufacturing Co. announced today that it has agreed to form a joint venture with China-based Jiangsu Puxin Heat Exchange System Co. Ltd.
Jiangsu Puxin is a manufacturer of stainless steel heat exchangers. The company is located in Yangzhou, China, approximately 200 miles northwest of Shanghai.
Modine is a thermal management systems and components manufacturer.
Modine says the joint venture, which Modine expects to facilitate through one of its China subsidiaries, will expedite its introduction of stainless steel heat exchangers for the China light-, medium-, and heavy-duty commercial vehicle markets. Modine already produces these products in other regions.
The deal is expected to close during the fourth quarter of fiscal 2016. Upon closing, Puxin will contribute substantially all of its current business and assets to the new joint venture, which the parties expect to be called Modine Puxin Thermal System (Jiangsu) Co., Ltd.
No other terms of the anticipated deal were disclosed.
“Establishing this joint venture with Puxin helps us expand our product offerings in China and more fully utilize assets we already have on the ground there,” said Scott Bowser, Modine’s vice president, Asia. “In addition, it supports our objective of expanding our low-cost manufacturing footprint for producing advantaged heat exchangers for the vehicular markets, where Modine plays a leading global role.”
“Modine’s global reputation and superior thermal management technology, coupled with Puxin’s manufacturing capability and relationships with local customers, will enable incremental growth in a key product category in which Modine does not fully participate today,” said Tom Marry, Modine’s executive vice president and chief operating officer.