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Johnson Controls Sets up Plant for Automotive Fabrics in Haining, China by Forming New Joint Venture

August 29, 2013, 9:00 UTC+3

Company will supply its customers with state-of-the-art fabrics products manufactured locally in China

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HAINING, China and BURSCHEID, Germany, August 28, 2013 /PRNewswire/ -- Johnson Controls, a global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics, today signed an agreement with Zhejiang Wanfang New Materials Co., Ltd. ("Zhejiang Wanfang") to set up a new fabrics joint venture in Haining City, Zhejiang Province. Johnson Controls will become one of the first Global Fortune 500 companies to invest in Haining.

The new joint venture will be called Zhejiang Johnson Controls Wanfang Textile Technology Co., Ltd. It will supply major automakers in China and abroad with automotive and functional fabrics for automotive seating and interior products.

"Zhejiang Wanfang is well-known in the warp knitting industry for its mature technology, advanced management philosophy and professional operations. Its proven quality is highly appraised by its customers, including many Japanese automakers," said Johannes Roters, group vice president and general manager China, Johnson Controls Automotive Experience. "With the establishment of this new joint venture, Johnson Controls will combine the strong local production capabilities with our global leading technologies. The aim is to reinforce vertical integration in our fabrics business, and provide our customers with state-of-the-art products manufactured locally in China."

In recent years, Johnson Controls has developed unique expertise in automotive fabrics, including world-class capabilities in coating, weaving, knitting, fine trimming, coloring and lamination, and has become the market leader in the trim cover industry.

"In the next few years, Johnson Controls' world-class management, manufacturing, design and sustainable capability will be brought into the new joint venture," Roters said. "With our partner's support, it will be built into a domestic and global leading automotive fabrics plant, and be positioned as Johnson Controls' major manufacturing hub and Center of Expertise in China and even in the Asia Pacific region."

The joint venture formation, which is subject to regulatory and other customary closing conditions, is expected to be completed by the end of 2013. Financial terms regarding the transaction were not disclosed

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About Johnson Controls

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 168,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful.

About Johnson Controls Automotive Experience

Johnson Controls is a global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics. We support all major automakers in the differentiation of their vehicles through our products, technologies and advanced manufacturing capabilities. With 240 locations worldwide, we are where our customers need us to be. Consumers have enjoyed the comfort and style of our products, from single components to complete interiors. With our global capability we supply approximately 50 million cars per year.



Oliver Herkert, Johnson Controls GmbH Automotive Seating, Industriestrasse 20-30, 51399 Burscheid, Germany

Tel.: +49-2174-65-4348

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