Standard Motor Products, Inc. (NYSE: SMP) has entered into a 50/50 joint venture agreement with Techstrong Holdings Limited to establish Techstrong Electronics (Thailand) Company Limited, an automotive sensor manufacturing company based in Thailand.

The new entity will manufacture ABS speed sensors, camshaft position sensors, and other position sensors. Through the agreement, SMP acquires a 50% stake in an existing supplier, expanding its manufacturing capabilities across those sensor categories.

SMP said the Thailand location supports its objective to diversify its global supply chain and reduce reliance on China-based manufacturing.

"This joint venture represents an important step forward in our commitment to our customers," said Hap Acee, Vice President of Asian Operations for SMP. "By investing in manufacturing and deepening our partnership with Techstrong, we are strengthening our ability to deliver the quality, coverage and value that our customers expect from SMP."

Financial terms of the agreement were not disclosed. The information is based on a company press release.