Lizhong Wheel Group, the manufacturer of aluminum alloy wheels in China, says wholly-owned subsidiary, Baoding Lizhong Wheel Manufacturing Co., has entered into a joint venture agreement with Italian HT&L Fitting S.P.A. (HT&L).

The new entity, known as HT&L Fitting (Changsha) Co, has a registered capital of RMB33.0 million ($6.3 million), of which HT&L will hold a 51% stake while Baoding Lizhong invested RMB 16.17 million to hold the remaining 49% shares.

The Changsha project includes the construction of a plant of 30 mu in the Changsha Economic and Technology Development Zone. Designed with initial capacity of 1 million sets of assembled wheels per annum, the plant will provide assembly work of automobile wheels, tyres and other related parts, as well as after sales, technological related and warehouse services.

The targeted customers would include GAC FIAT (joint investment between Guangzhou Automobile Group and Fiat Group Automobile) and other large carmakers within China.

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