Pierburg GmbH, an automotive diecaster within Germany’s Rheinmetall Automotive AG, agreed to form a joint venture with Zhejiang Yinlun Machinery Co. Ltd., in Tiantai, China, to produce cooled exhaust-gas recirculation modules for the Chinese automotive industry. Pierburg Yinlun Emission Technology Co. Ltd. will supply automakers with certified, ready-to-install EGR systems.

Exhaust gas recirculation (EGR) is a NOx emissions reduction method for gasoline and diesel engines in which part of the engine’s exhaust is recirculated back to the engine cylinders. The N2 content of the exhaust gas is diluted and CO2 gas absorbs combustion heat to reduce temperatures in the cylinder, which reduces the production of NOx.

Pierburg will hold a 51% stake in and manage Pierburg Yinlun Emission Technology Co. Ltd., near Shanghai, which will start production in 2018. The capitalization of the new venture and the value of Pierburg’s holding were not reported.

The Rheinmetall Automotive subsidiary specializes in developing and manufacturing emission control modules, air supply systems, throttle valves, and solenoid valves.

Zhejiang Yinlun Machinery is a Chinese manufacturer of heat exchangers for automotive and off-road vehicle engines, as well as diecastings used in emission reduction systems.

Starting production in 2018, the joint venture will initially operate one production line, with on-site testing capabilities. Additional production lines will start up by 2020. The development plan calls for 100 employees by 2021.

The venture will operate from a new building about to be completed in Tiantai, where Yinlun is consolidating its manufacturing of products like exhaust-gas recirculation cooler modules, components for thermal management of electric vehicles, charge-air coolers, and equipment for after-treatment of emissions.

The joint venture will be supplied with exhaust-gas recirculation valves assembled by Pierburg’s current plant in Kunshan and cooling devices manufactured by Yinlun.