Valeo Establishes New Joint Venture in China, With Ichikoh, and Increases Shareholding in Hubei Valeo to 100%

Valeo Establishes New Joint Venture in China, With Ichikoh, and Increases Shareholding in Hubei Valeo to 100%

June 29, 2006

    PARIS, June 29 /Xinhua-PRNewswire/ -- Valeo today
announced the establishment of a Chinese joint venture with
Ichikoh, one of Japan's largest lighting systems
manufacturers. This operation, the Group's thirteenth in
China, demonstrates Valeo's continuing commitment to the
Chinese automotive market and further strengthens its
presence in the country. 

    The new company, Foshan Valeo Ichikoh Auto Lighting
Systems Co., Ltd., is a 50/50 joint venture between Valeo
and Ichikoh. It will initially manufacture advanced
automotive lighting systems for Japanese carmakers based in
China. A new 34,000 sq. m. plant, located in Foshan, near
Guangzhou, will start production in April 2007. When fully
operational, it will employ 400 people.

    The Group also announced that it had increased its
shareholding in its other Chinese joint venture Hubei Valeo
Auto Lighting Systems Co., Ltd. from 75% to 100%. 

    The Foshan Ichikoh Valeo and Hubei Valeo lighting
plants will work closely with the 70 engineers at the Valeo
Automotive Lighting Systems China Technical Center in
Wuhan.
 
    "The Chinese market represents a key part of
Valeo's future growth. By creating this new joint venture
with Ichikoh and taking the full control of Hubei Valeo,
the Group reinforces its presence in Asia and its strategic
position as a supplier of world class lighting technology to
all customers", said Thierry Morin, Valeo Chairman
& CEO.

    Valeo is an independent industrial group fully focused
on the design, production and sale of components,
integrated systems and modules for cars and trucks. Valeo
ranks among the world's top automotive suppliers. The Group
has 134 plants, 68 R&D centers, 9 distribution centers
and employs 70,400 people in 27 countries worldwide.

    For more information, please contact:

     Alexandre Telinge, 
     Group Media Relations & PR Manager 
     Valeo
     Tel: [phone]

     Matthieu de Crevoisier, 
     Group Media Relations Coordinator
     Valeo
     Tel: [phone]

SOURCE  Valeo