Ichikoh Industries Ltd. said Thursday it and French auto parts manufacturer Valeo SA have signed an agreement to form a wide-ranging business alliance in the global automotive lighting equipment market.
The accord, signed Wednesday, features a cross-shareholding arrangement to clarify the equal partnership, said the Japanese automotive lighting equipment maker affiliated with Nissan Motor Co.
Valeo is a close business ally of Renault SA of France. In line with Renault's alliance with Nissan, Valeo has been strengthening ties with Nissan group companies.
Based on a memorandum on the alliance reached in April, Valeo Bayen, the French group's holding company, has already acquired a 20 percent equity stake in Ichikoh from Nissan to become Ichikoh's top shareholder, Ichikoh said.
In return, Ichikoh will acquire a 20 percent stake by the end of this year in Valeo's automotive lighting equipment affiliate, which the group plans to establish in the near future, it added.
The two firms will exchange part-time directors and cooperate in a broad area ranging from marketing, design and development to manufacturing and delivering products.
They also plan to share knowhow and technologies in manufacturing and product development, it said.
The alliance is aimed at improving efficiency and cutting costs while enabling themselves to meet global customer demand, Ichikoh added.