US-based axle producer Dana Holding Corp has increased its stakes in a Chinese joint venture to 50 percent, Dongfeng Motor Co, Ltd (DMC), co-owner of the joint venture, confirmed Thursday.

Dana, a leading supplier of driveline products, has paid DMC $124 million for an additional 46 percent stake in the joint venture, Dongfeng Dana Axle Co, Ltd (DDAC), according to a statement by DMC.

Dana previously held a 4 percent stake in the company, which was set up in 2005 by the two sides.

"We are encouraged by the continued strong performance of the truck and bus markets in China, and of our partner Dongfeng, and look forward to the strengthened relationship," said Dana president and chief executive officer Roger Wood.

"This is another important step in our ongoing drive to seek out opportunity in the Chinese market and expand globally," Wood said.

Headquartered in Xiangyang in central China's Hubei province, DDAC is the primary supplier of truck axles to DMC, one of the country's leading automobile manufacturers.

DDAC board chairman Huang Gang said the deepening of the cooperation between Dana and DMC will enable the joint venture to have more access to their technologies, management and sales network.

"Besides, it will cushion the overseas expansion for DMC's commercial vehicle sector," Huang added.

DDAC is now offering a full range of axles for trucks as well as buses in the Chinese market.

Sales revenue of the company totaled 6.65 billion yuan ($1 billion) in 2010, according to the company.

Based in Maumee, Ohio, Dana employs about 22,500 people in 26 countries and reported 2010 sales of $6.1 billion.