German supplier Hella Group and state-owned Chinese automaker Beijing Automotive Industry Holding Corp. have agreed to establish a 50-50 joint venture to produce lighting in Beijing.

The €30 million (255 million yuan) partnership is expected to start operation in September, according to Hella.

After the joint venture becomes operational, Hella will convert its existing wholly-owned lighting subsidiary in Beijing, Hella Beifang Automotive Lighting Co., into a full service center.

Hella says it employs 4,500 people at ten locations in China.

In March, the company opened a new plant in Jiaxing. That facility, which cost 581 million yuan, will produce up to three million headlamps and 1.8 million taillights annually.