LONDON (GC Intelligence) – Hella, the German automotive supplier, sells its relay business to Hongfa, a Chinese company and global supplier of relays.
The price of the transaction, according to the company press release, is around €10m, and 280 Hella employees will transfer to Hongfa.
A relay is an electrically operated switch and some of the engineering resins used for the housings are glass reinforced nylon 6 (PA6), nylon 66 (PA66) and polybutylene terephthalate (PBT).
“In the years to come, we want to concentrate even more strongly on the central future topics of the automotive industry,” explains HELLA CEO Dr. Rolf Breidenbach. “We see these topics as being primarily those of electric mobility and autonomous driving. So we are delighted to have found in Hongfa an experienced partner who will successfully further develop our relay business.”
Hongfa in 2018 achieved total sales of around €1.2 billion.
HELLA, a family-owned automotive supplier, with sales of € 7.0 billion in the fiscal year 2018/2019, operates in 35 countries and has 39,000 employees.