Annual Report 2010 - Knorr-Bremse AG.

RepoRt
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Partner with an excellent reputation
Chongqing CAFF Automotive Braking & Steering Systems Co. Ltd. is a company with an excellent
reputation, especially within China. Founded in 1952, the company was one of the first manufacturers
of automotive components in China and has had a lasting influence on the development of the Chinese
automobile and commercial vehicle industries over recent decades. CAFF currently employs
around 1,600 people.
Declared goal: market leadership
The declared medium-term goal is to become one of the leading commercial vehicle industry suppliers
in the People’s Republic of China, and the German-Chinese partnership is an important step in that
direction. Collaboration with CAFF enables the Commercial Vehicle Systems division to produce a
wide-ranging product portfolio with a high element of value-added directly in the Chinese market. At
the same time, the new joint venture will strengthen the company‘s local presence yet further.
In addition to the choice of partner, the location was also of great importance for Knorr-Bremse. Situated
at the heart of China, the municipality of Chongqing is home to some 32 million people and is a
key driver of industrial development in virtually the whole of Western China. Chongqing is also a major
cultural and industrial center and an important transportation hub in this region to the east of Sichuan
province. Many western companies have set up operations here and some countries maintain general
consulates in the city.
Strategic vision pays dividends once again
The formation of the joint venture Knorr-Bremse CAFF Systems for Commercial Vehicles Chongqing
Ltd. is yet another example of the success of the Group’s long-term strategy in China.
Parallel to the expansion of the Rail Vehicle Systems division, Knorr-Bremse Commercial Vehicle Systems
had entered into negotiations on potential partnerships with Chinese companies at a very early
stage, and the foundation of this joint venture demonstrates the value of this approach.