Mutares SE & Co. KGaA acquires a 67% stake in Hwaseung Special Rubber and Hwaseung Auto Parts to strengthen its position in the Chinese automotive market.

Target Company Overview

Mutares SE & Co. KGaA has successfully acquired a 67% majority stake in Hwaseung Special Rubber (Taicang) Co., Ltd. ("HSR") and Hwaseung Auto Parts (Taicang) Co., Ltd. ("HST") from the publicly listed Korean company, Hwaseung Corporation. Both HSR and HST are recognized for their crucial rubber sealing and hose products, catering to prominent automotive manufacturers such as GM, VW, Hyundai, Kia, and Xiaomi. With two state-of-the-art production facilities and approximately 600 employees, these companies generate a revenue of nearly EUR 100 million.

The acquisition of HSR and HST aligns well with Mutares' Amaneos China operations, allowing for significant synergies within the value chain. Integration into Mutares' existing business areas for rubber components and HVAC hoses will create cost advantages, enhance operational efficiencies, and strengthen competitive positioning in one of the world's most dynamic automotive markets.

Industry Overview in China

The Chinese automobile industry stands as one of the largest and fastest-growing automotive sectors globally, characterized by rapid technological advancements and increasing consumer demand. In recent years, the industr