WADERN-BUESCHFELD, Germany—SaarGummi Group has entered a technical agreement and is considering forming a joint venture with South Korean automotive components supplier AIA Corp., SaarGummi announced June 2.
The technical deal, which was signed at the end of May, is intended to link SaarGummi's capabilities in sealing systems with AIA's in the manufacture of anti-vibration systems, bumpers and weatherstrips.
AIA has significant existing business with Hyundai Motor Co. and Kia Motors Corp., including delivering 12 percent of the weatherstrips for both South Korean car makers, according to Saargummi's statement.
"We are sure that the technical agreement with AIA will help us to establish the SaarGummi Automotive innovations on the increasing (South) Korean automotive market," said David Lettin, managing director of SaarGummi Technologies International GmbH. "We are also thinking about the foundation of a joint venture with AIA into the next months."
He did not provide further details about the possible joint venture.
SaarGummi Group operates out of 23 locations in Europe, the Americas and Asia Pacific, with a total of around 5,700 employees.
AIA has been founded 1988 as Daekyung Chemical Co. and changed its name into AIA in 2004. Today, the South Korean company has about 350 employees, and achieved 2016 sales of $263 million.