China's Dongfeng Motor Group Co Ltd will team up with auto parts maker Nexteer Automotive Group Ltd to create and produce electric power steering systems for Dongfeng passenger cars, Nexteer announced on Monday.

The joint venture, which will be equally shared by both companies, will build a facility in Wuhan, China, near Dongfeng's headquarter. Other specific terms of the deal were not disclosed, and the agreement is still subject for regulatory approval. If realized, the joint venture will become the Dongfeng Group's in-house produce of passenger vehicle EPS systems.

Like Us on Facebook

"We continue to seek strategic alliances with OEMs and other business partners," Mike Richardson, President of Nexteer, said. "The opportunity to join Dongfent Components in a unique role of JV partner and producer of EPS for future vehicle platforms further expands our presence in the Asia-Pacific region and contributes to our overall revenue growth objectives."

The recent deal came after Nexteer expanded to 21 new clients in the Asia-Pacific region in 2016, a location that holds for 24 percent of the company's total revenue. "By providing our advanced steering technologies specifically tailored to the needs of our customers like Dongfeng, we continue to increase our presence in the growing Chinese market which is a core component of Nexteer's strategy for profitable growth."

Nexteer's business operations include delivering electric and hydraulic power steering systems, steering columns, driveline systems, and advanced driver assistance systems. It employs more than 13,000 and serves over 50 clients across the world. Its clients include Fiat Chrysler, General Motors, Toyota, Volkswagen, and even Dongfeng-affiliated vehicles like the Peugeot 2008 crossover.

TagsDongfeng Motor Group, Nexteer Automotive, power steering system, EPS systems