Grammer AG signs Joint Venture Agreement with FAWSN Group, an affiliated company of one of the largest automotive manufacturers in China

• Further milestone of Grammer's expansion plans in China achieved
• Grammer to hold 50 percent of the Joint Venture with CHANGCHUN FAWSN GROUP CO., LTD.
• CHANGCHUN FAWSN Group is an affiliated company of FAW Group, a leading passenger car and truck manufacturer in China

CHANGCHUN, CHINA - EQS Newswire - November 5, 2019 - Grammer AG has signed today an agreement with CHANGCHUN FAWSN GROUP CO., LTD., Changchun, China, an affiliated company of FAW Group Co., Ltd., one of the largest automotive manufacturers in China, to establish a Joint Venture for automotive interior components. Grammer AG will be holding 50 percent of the new Joint Venture GRAMMER FAWSN Vehicle Parts Co., Ltd. The other 50 percent will be held by CHANGCHUN FAWSN GROUP CO., LTD.

The Joint Venture will be developing and producing a wide range of automotive interior components for vehicles produced by the FAW Group and its foreign partners. Grammer will be contributing its development and manufacturing know-how for all products such as consoles, interior components and functional plastics.

As one of the largest automobile manufacturers in China, the FAW Group produced last year more than 3.2 million passenger cars for the local market and exports to other Asian countries, Africa and Latin America.

"Through the Joint Venture with the CHANGCHUN FAWSN GROUP, we reach another important milestone in our growth strategy in China. By working closely with a leading local OEM, we will be able to reinforce our position in the largest automotive market and substantially spur our planned growth in Asia," explains Thorsten Seehars, Chief Executive Officer of Grammer. "This Joint Venture combines the strengths of a leading Chinese manufacturer with the expertise of one of the leading suppliers for interieur components".

More than twenty-six million passenger cars are produced each year in China making it the world's largest market for automobiles. With its new partner FAWSN Group, Grammer possesses an outstanding platform to widen its customer base in China and achieve a greater penetration of other Asian markets at the same time.

Grammer generates today around 15 percent of its Group revenues in China with a total of six production and two research and development sites addressing both the passenger and commercial vehicle segments. Looking ahead the new Joint Venture in Changchun will further support Grammer's growth plans in China.

About the CHANGCHUN FAWSN GROUP

With its headquarters in Changchun in the Province of Jilin, CHANGCHUN FAWSN GROUP CO., LTD. is an affiliated company of one of the largest automotive manufacturers in China. The Group has 9,500 employees and produces a wide range of automotive components and systems mainly for the FAW Group for the Chinese and export markets.

About Grammer AG

Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats. With approximately 15,000 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.