International legal practice Osborne Clarke's Shanghai-based firm, Zhang Yu & Partners, has advised the world’s largest wheel manufacturer, Maxion Wheels, on an agreement to form a new passenger car aluminium wheel joint venture with Dongfeng Motor Parts and Components Group, one of China’s largest automotive parts companies.
The new legal entity, Dongfeng Maxion Wheels, will build a new two-million per year capacity plant in Hubei Province, China, with series production scheduled for second half 2020. It is also expected to initially bring more than 450 new jobs to the region and produce low pressure die cast aluminium wheels, including high-end wheel finishes, as well as, other innovative wheel features.
Steve Yu, Managing Partner at Zhang Yu & Partners advised Maxion Wheels on the joint venture. He was supported by commercial lawyers Carter Xu and Danny Yang.
Commenting on the matter, Steve Yu said: “With an expected vehicle production output to reach 30 million units by 2020 and 35 million by 2025, the Chinese automotive sector has grown to become the largest in the world measured by automobile unit production. The new Maxion - Dongfeng joint venture is well position to respond to this development and will provide world-class aluminium wheels for the automotive consumers. We are very delighted to advise Maxion Wheels and witness the birth of this new joint venture”.
Launched in May 2017, Zhang Yu & Partners offer a distinct Osborne Clarke-style service for clients. With sector specialisms in tech, media and comms, and consumer products, they are experts in cross-border advisory services for sector clients with requirements in Mainland China and internationally.