Continental to set up air spring JV in South Korea

HANOVER, Germany (Jan. 6)—Continental A.G. is teaming up with South Korean automotive supplier Dae Won Kang Up Co. Ltd. to set up a joint venture to make air springs in South Korea. The deal, between ContiTech's air spring unit, ContiTech Luftfedersysteme GmbH, and Dae Won Kang Up, should raise ContiTech's share of the market for commercial vehicle air springs in Asia, the companies said. The partners will invest $3 million to set up a facility in South Korea, with production scheduled to start early in 2004, according to ContiTech. Until then, ContiTech will supply air spring systems to the joint venture from other plants. Dae Won Kang Up claims an 80-percent share in the domestic original equipment market for commercial vehicle air springs. The South Korean and German firms have been working together since 1985. In 2002, ContiTech shipped more than 69,000 air springs to the South Korean company.