The European Commission announced it has approved a joint venture for the production of exhaust gas recirculation modules between Rheinmetall AG and Zhejang Yinlun Machinery Co Ltd. The joint venture will not distort competition in Europe as it will not be active within the European Economic Area. Rheinmetall announced the establishment of the joint venture in early December, 2016. Under the terms of the agreement, the Pierburg GmbH will own 51% of the new company, which will be called Pierburg Yinlun Emission Technology Co Ltd. The joint venture will be based in the Shanghai region and will manufacture modules exclusively for China. Production is expected to start in 2018. Through the venture, Rheinmetall and Pierburg will be able to tap into growing demand for cooled systems.