Valeo Creates its First Joint Venture in Russia

Paris - Valeo announced that it has signed an agreement for the creation of a joint venture for the production of HVAC (heating, ventilation and air-conditioning) systems with Itelma, a Russian supplier of automotive systems to Russian automakers. The new company, Valeo Climate Control Tomilino LLC, will be 95% owned by Valeo and 5% by Itelma.

Located in Tomilino (10 km from Moscow), the joint venture will develop, produce and sell Valeo Climate Control products and systems, including HVAC modules for passenger cars.

Thierry Morin, Valeo Chairman and CEO, said: "This joint venture is our first step in our growth strategy for Russia, where local production is growing by 20% a year and is expected to reach 4 million vehicles by 2015. We are entering the market at a very appropriate time as global automakers ramp up production in the country."

Itelma is one of the leading manufacturers of engine management and on-board electronics, wire harnesses and exhaust systems for automotive industry in the Russian Federation.

(June 28, 2008)