Bosch Group (China) FY2008
Business Highlights
Diesel engine systems :
Producing injection pumps used in diesel common rail systems for passenger vehicles
The Bosch Group (China) announced in October 2008 that it will start producing injection pumps used in diesel common rail systems for passenger vehicles in China. Production will start in November 2008 at Bosch Automotive Diesel Systems Co., Ltd. in Wuxi, which currently manufactures injectors and rails used in common rail systems designed only for commercial vehicles. (It procures electronic control units (ECUs) from Bosch Automotive Products (Suzhou) Co., Ltd.) The Wuxi plant, then, will begin producing injectors designed for light-duty vehicles such as sedans, SUVs, and pickup trucks. The company currently imports major automotive components such as injectors from its facilities outside China. Bosch, however, intends to produce all the common rail system components needed for all vehicle categories such as commercial vehicles, passenger vehicles, and light-duty vehicles in China from 2009. As a result, the Group will invest 200 million euros in the Wuxi subsidiary in order to increase its annual production volume of common rail systems from the 100,000 units produced in FY2007 to 1.4 million units by 2010. (From a press release in October 2008)
Chassis systems:
Starting production at brake system plant
In June 2008, Bosch officially began production at its new facility, Bosch Chassis Systems (Dalian) Co., Ltd. The major products that will be produced at the new plant include brake calipers, parking brakes, brake discs, and brake master cylinders. The Group established this subsidiary by acquiring a 73.5 percent share in Pacifica Automotive Technology (Dalian) Co., Ltd. from Pacifica Group Limited. By the end of 2008, Bosch intends to invest an additional 12 million euros and increase the number of workers there to 700 in order to boost its capacity further. (From a press release June, 2008)
Automotive electronics products:
Beginning mass production of electronics components
In March 2008, Bosch announced that Bosch Automotive Products (Suzhou) Co., Ltd. will establish three new production lines to make car electronics products. The Suzhou facility already completed trial production of censors used in parking-assist systems. The production lines producing ABSs and ECUs used in ESP systems are scheduled to begin operating in April, while those producing airbag control units will begin in the second quarter of this year. (from a press release, March 2008)
R&D
- In November 2008, the company opened its winter proving-ground in Yakeshi, Inner Mongolia. The Center will focus on winter road application testing on active safety technologies including Anti-lock Breaking System (ABS), Electronic Stability Program (ESP), and Traction Control System (TCS) in order to provide cutting-edge technology to Bosch's customers in the Asia-Pacific region. (From a press release, November 2008)
City | Year established | Company name | Area of testing |
Yakeshi, Inner Mongolia) | 2007 (Under construction) |
Bosch (Hulunbeier) Automotive Winter Testing Co, Ltd. | -Testing on frozen proving-grounds - Testing on unfrozen winter proving-grounds |
Investment Activities
Recent Projects
Project | Planned amount of investment | Progress |
Establishing a winter test center in Yakeshi, Inner Mongolia | 150 million yuan | The construction work started in July 2007 This facility opened in November 2008 |
Establishing three additional production lines at Bosch Automotive Products (Suzhou) Co., Ltd. to manufacture the following car electronics products: 1. Parking assist sensors 2. ECUs used in ABSs and ESPs 3. Airbag control units |
Approximately 100 million yuan | Construction is scheduled to complete in the second quarter of 2008 |
Establishing a logistic center in Changsha City, China | 4.3 million yuan | Construction work started in February 2008 |
Establishing a headquarters building in Shanghai consisting of office area, R&D facilities, and a training center | 120 million yuan | Construction work, which started in May 2008, is scheduled to be completed in 2010 |
Expanding facilities at Bosch Chassis Systems (Dalian) Co., Ltd., which manufactures brake systems | 12 million yuan | This project is scheduled to be completed in 2009 or later |
Expanding common rail system plant at Bosch Automotive Diesel Systems Co., Ltd. in Wuxi | 200 million yuan | This project is scheduled to be completed in 2010 |
Major Capital Investment Projects for 2008-2010:
- The Bosch Group plans to invest a total of 850 million euros between
2008 and 2010. This includes a 200 million plan at the automotive
technology division, which will expand its facility producing common rail
systems in Wuxi. (From a press release in October 2008)