PARIS, July 11 — Carmakers Renault and Geely said they have signed a binding 50/50 joint venture agreement to launch a new powertrain technology company, reported German news agency dpa.

The new company will include 17 engine plants and 5 R&D centres on three continents with 19,000 employees.

It aims to become the global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient ICE powertrains, Renault said in a statement.

It noted that the initiative will be jointly led by France’s Renault and China’s Geely, with equal board members to formulate and execute strategies and set the direction for the joint venture.

An executive team will be based in the headquarters of the new company, which are set to be established in the United Kingdom, to consolidate operations, build on synergies, and define future plans.

The joint venture company aims to have an annual production capacity up to 5 million internal combustion, hybrid and plug-in hybrid engines and transmissions per year.

The transaction is expected to be completed in the second half of 2023.

According to Renault, Aramco, which signed a letter of intent with Renault and Geely on March 2, 2023, is evaluating a strategic investment in the new powertrain technology company.

The Saudi natural gas and petroleum firm’s investment would support the growth of the company and contribute to key research and development across synthetic fuels solutions and next-gen hydrogen technologies. — Bernama-dpa