European and US suppliers in China (Part 2): Central, North and Southwest China

Autoliv, Bosch, Delphi, Honeywell, Johnson Controls, MAHLE, Visteon, ZF and others

2015/02/02

Summary

This report is the second part of the trend report on key European and U.S. parts suppliers in China. This report summarizes their business activities in central (Hubei and Hunan Provinces), northern (in the area around Beijing City) and southwestern (Chongqing City and Sichuan Province) regions in China between the end of 2013 and mid-January 2015. The summary on business activities in the area around Shanghai City and Eastern China, which is not covered in this report, is available in the Part 1 report.

Summary of activities

New companies/
plants start operations
Central China
(Hubei Province)
Antolin/Visteon (interior parts), Guardian (plastic parts ), Honeywell (turbochargers), Knorr-Bremse (braking systems for commercial vehicles), Mahle (engine components) and ZF (steering systems)
South China
(Guangdong Province)
Gestamp (steel stamping parts)
North China
(Beijing City, Tianjin City and Hebei Province)
Autoliv (airbags for Great Wall Motor), Delphi (wire harnesses), Hella (lighting systems) and ZF (chassis systems)
Southwest China
(Chongqing City and Sichuan Province)
Johnson Controls (batteries) and ThyssenKrupp (springs and stabilizers)
Northwest China
(Shaanxi Province)
Eaton (transmissions for commercial vehicles) and Eberspaecher (exhaust gas after-treatment systems for commercial vehicles)
Northeast China
(Liaoning Province)
MAHLE Behr (car air-conditioning modules) and Visteon (interior parts)
Enhancement of production capacity/addition of products for production North China
(Shandong Province)
Federal-Mogul (engine pistons) and TrelleborgVibracoustic (engine mounts and other parts)
Southwest China
(Chongqing City and Sichuan Province)
GKN (drive shafts), Johnson Controls (automotive seats) and Plastic Omnium (exterior parts)
Northwest China
(Shaanxi Province)
TRW (airbag inflators)
Enhancement of technical center Central China
(Hubei Province)
Cummins (engine development)
Business reorganization and cooperation Central China
(Hubei and Hunan Provinces)
Bosch (jointly develops CVTs with local company) and Getrag (jointly develops DCTs at its JV)
North China
(Hebei Province)
Eaton (forms an alliance with Great Wall Motor)
Northeast China
(Jilin Province)
Johnson Controls to transfer stake in Chinese JV to Visteon

Related Reports:
European and US suppliers in China (Part 1): Shanghai, Jiangsu, eastern China (Jan. 2015)
Japanese suppliers in China (Part 2): Northern, Northeastern & Southern regions (Mar. 2014)
Japanese suppliers in China (Part 1): Eastern and Central China (Mar. 2014)



Activities in Central and South China: Bosch, Honeywell, Mahle and others

Central China: Hunan and Hubei Provinces

New companies/plants start operations
Companies Activities
Antolin/Visteon
Antolin and Dongfeng Visteon to construct new plant in Wuhan to produce interior parts
In December 2014, Grupo Antolin and Dongfeng Visteon Wuhan Automotive Trim Systems Co., Ltd. announced that they will establish a joint venture (JV) and construct a new plant in Wuhan City, Hubei Province to produce automotive interior parts. The new plant will employ 180 workers and will start production in January 2015. The JV will supply products to Renault S.A., PSA Peugeot Citroen and other automakers.
Guardian
SRG Global, subsidiary of Guardian Industries Group, to construct second plant in China
In November 2014, SRG Global Inc., a subsidiary of the Guardian Industries Group, announced that it will construct a new plant in Hubei Province. This plant will be the company's second plant in China. The new 23,000-square-meter plant will have an injection-molding line, a chrome-plating line and a painting line to produce plastic parts. Production is scheduled to begin in early 2016. The new plant will employ 350 workers.
Honeywell
Honeywell Turbo Technologies starts operations of new plant in Wuhan City
On September 2, 2014, Honeywell Turbo Technologies started operations of a new plant in Wuhan City, Hubei Province. The new plant will triple the company's turbocharger production capacity and help the company meet fast-growing demands in China. The company has another plant and a technical center in Shanghai City. The technical center is equipped with the world's second largest turbocharger testing facility.
Knorr-Bremse
Knorr-Bremse and DETC sign agreement on establishment of new JV to produce braking systems for commercial vehicles
In July 2014, Knorr-Bremse AG announced that Knorr-Bremse Asia Pacific (Holding) Ltd. and Dongfeng Electronic Technology Co., Ltd. (DETC) signed an agreement on the establishment of a new JV named Knorr-Bremse DETC Commercial Vehicle Braking Technology Co., Ltd. The new JV, in which Knorr-Bremse holds a 51% stake, will be set up in Shiyan City, Hubei Province. The product portfolio will include ABS anti-lock brakes, air disc brakes, brake valves, transmissions and exhaust brake components for medium- and heavy-duty trucks.
Mahle
New production subsidiary in Wuhan City starts production of engine components
In August 2014, Mahle GmbH announced that Mahle Filter Systems (Hubei) Co., Ltd., its new production subsidiary in Wuhan City, started operations. The investment in the new subsidiary totaled EUR 75 million. The subsidiary supplies automotive filter systems and engine components, such as air filters, intake manifolds, engine cylinder head covers and oil coolers, for Nissan Motor Co., Ltd., PSA, General Motors Company (GM), Honda Motor Co., Ltd., Volvo Cars, Suzuki Motor Corporation, Renault and other automakers. The new subsidiary's annual production capacity is expected to exceed 2 million units and annual sales are forecasted to reach CNY 1 billion.
ZF
New Wuhan plant starts production of steering systems; second-phase construction begins
In January 2015, ZF Friedrichshafen AG announced that its Chinese subsidiary, ZF Shanghai Steering Systems (Wuhan) Co., Ltd., started operations. The Chinese subsidiary was established in November 2013 with a capital of CNY 50 million. The ZF subsidiary is located in Jingang New District, Jiangxia Economic & Technological Development Zone, Wuhan City and is adjacent to GM's Wuhan plant. The ZF subsidiary primarily produces electric steering columns, hydraulic steering systems, mechanical steering columns and mechanical steering systems. The investment in the first-phase construction of the ZF subsidiary (plant) was CNY 350 million. ZF has already started the second-phase construction.
Enhancement of technical center
Company Activity
Cummins
Cummins to expand technical center in Wuhan City
In September 2014, Cummins, Inc. announced that it will quadruple the size of its technical center in Wuhan City, Hubei Province. When this expansion project is completed, the technical center will be the company's largest engine development facility outside the U.S. and will have the largest capacity in terms of the number of newly developed engine models. Cummins will invest USD 160 million in this expansion project. The company will increase the number of the technical center's testing rooms to 60 and increase the technical center's workforce to between 500 and 1,000 in the future. Cummins will conduct research and development of all its engines, including large engine models, at the technical center.
Business reorganization and cooperation
Companies Activities
Bosch
Bosch and Hunan Jianglu & Rongda Vehicle Transmission introduces new CVT
In April 2014, Bosch Group (China) and Hunan Jianglu & Rongda Vehicle Transmission Limited Company introduced their new joint-developed compact continuously variable transmission (CVT). The new CVT adopts a newly developed material with high durability, which substantially improves the power transmission efficiency of the CVT belt. Mass-production of the new product is expected to begin in a few years.
Getrag
Getrag to jointly develop DCTs with Chinese JV
In October 2014, Getrag announced that it has agreed with its Chinese JV, Dongfeng Getrag Transmission Co., Ltd., on the joint development of dual clutch transmissions (DCTs). The JV is scheduled to start production of DCTs for compact passenger cars in Wuhan City, Hubei Province in 2016.

South China: Guangdong Province

New plants start operations
Company Activity
Gestamp
Gestamp starts operations of its eighth Chinese plant
In October 2014, Gestamp Automocion S.A. announced that it has started operations of a new plant in Dongguan City, Guangdong Province. Gestamp's Chinese plants supply metal vehicle body components and other steel-stamping parts to automakers, such as PSA, Volkswagen AG (VW), Renault-Nissan, Geely-Volvo, Ford Motor Company, GM, BMW AG, Daimler AG and Jaguar Land Rover Automotive PLC (JLR).

 

 



Activities in North China: Autoliv, Delphi, Federal-Mogul and others

North China: Beijing City, Tianjin City, Hebei Province and Shandong Province

New companies/new plants start operations
Companies Activities
Autoliv
Autoliv to construct new plant in Hebei Province to produce airbags for Great Wall Motor
In February 2014, Autoliv, Inc. announced that it will construct a new airbag plant in Baoding City, Hebei Province near the head office of Great Wall Motor Company. Construction of the new plant will start in the second half of 2014. The new plant will primarily produce airbags for the Great Wall Haval SUV and the Great Wall C30 compact sedan. Currently, Autoliv produces airbags for Great Wall Motor at its plant in Changchun City. The production of airbags at the Changchun plant will be transferred to the new Baoding plant in the future.
Delphi
Delphi to construct new wire harness plant in Tianjin City
In May 2014, Delphi Group (China) announced that it will construct a new wire harness plant in Wuqing Development Area, Tianjin City. The new plant will have a total floor area of 22,000 square meters on 40,000 square meters of land. Investment in this project is expected to reach CNY 100 million. The new plant will produce wire harnesses for vehicle-installed phones and in-vehicle infotainment systems. Key customers will be Mercedes-Benz and Great Wall Motor.
Hella
Hella and BAIC establishes lighting system JV
In November 2014, the Hella Group and Beijing Automotive (BAIC) Group held a ceremony to celebrate the start of operations of their 50-50 JV, Beijing Hainachuan Hella Automotive Lamp Co., Ltd. The new JV is capitalized at EUR 30 million, and develops and produces automotive lighting systems specifically designed for the Chinese market. In May 2014, both Groups reached an agreement on technological cooperation under which Hella will offer technological support to BAIC Group during the early stages of designing lamps for BAIC Group's own-brand models.
ZF
ZF and BAIC establishes chassis system JV
In October 2014, ZF Friedrichshafen AG and BAIC Group announced that they have established Beiqi ZF Chassis Syatems (Beijing) Co. Ltd., a JV for the development and production of passenger car chassis systems. The JV, in which ZF holds a 51% share, will be located in the Beijing Economic and Technological Development Area. Construction of the JV's new plant will begin in 2015. The new plant is scheduled to start production of front and rear chassis modules in 2016. The new plant will initially have an annual production capacity of 200,000 units. The total investment by the two partners in the new plant is more than EUR 10 million.
Enhancement of production capacity
Companies Activities
Federal-Mogul
Federal-Mogul begins expansion of piston plant in Qingdao City
In April 2014, Federal-Mogul Holdings Corporation began a capacity expansion project at its piston plant in Qingdao City, Shandong Province. When the project is completed, the plant space will be expanded by 30%. Starting in the second half of 2014, the company will supply its improved Elastoval pistons to three global automakers. The company also plans to produce the Elastoval II aluminum pistons used in gasoline engines for Chinese mid- and high-end passenger cars.
Trelleborg
TrelleborgVibracoustic expands plant in Shandong Province
In November 2014, TrelleborgVibracoustic announced that it has expanded its plant in Yantai City, Shandong Province. By doubling production capacity at the plant, the company will meet growing demands in the Chinese market. The production space of the Yantai site has been expanded by 8,000 square meters with a total investment of CNY 200 million in buildings, equipment and machineries. The Yantai plant produces chassis mounts and air springs for commercial vehicles as well as engine mounts and torsional vibration dampers.
Business reorganization and cooperation
Company Activity
Eaton
Eaton reaches framework agreement with Great Wall Motor to create strategic partnership
In May 2014, Eaton Corporation PLC and Great Wall Motor (located in Hebei Province) announced that they have signed a framework agreement to create a long-term strategic partnership through greater technical cooperation and resource sharing.Since 2004, Eaton has been a supplier to Great Wall Motor, providing locking differentials, fuel vapor valves, engine valves and valve actuation components.

 

 



Activities in Southwest and Northwest China: Eaton, GKN and others

Southwest China: Sichuan Province and Chongqing City

New plants start operations
Companies Activities
Johnson Controls
Johnson Controls starts operations of new automotive battery plant in Chongqing City
In June 2014, Johnson Controls Inc. announced that it has started operations of a new automotive battery plant in Chongqing City. The new plant covers an area of 133,000 square meters and has an annual production capacity of 6 million batteries. The investment in the new battery plant is USD 154 million. The company plans to employ over 500 workers at full capacity.
ThyssenKrupp
ThyssenKrupp starts operations of new plant in Chengdu to produce springs and stabilizers
In December 2013, ThyssenKrupp AG announced that it has started operations of a new plant in Chengdu City, Sichuan Province. The new plant produces automotive springs and stabilizers and supplies them to the Chinese market. The investment in the new plant is EUR 20 million. The new plant has an annual production capacity of 3 million units of springs and 1.5 million units of stabilizers. The new plant is a JV in which ThyssenKrupp owns 60% of the plant and FAWER Automotive Parts Ltd., a parts supplier in China, owns 40%.
Enhancement of production capacity
Companies Activities
GKN
GKN Drive Shaft (Chongqing) completes second-phase construction of drive shaft plant
In January 2015, GKN Drive Shaft (Chongqing) Co., Ltd., a subsidiary of GKN PLC's Chinese JV, announced that it has completed the second-phase construction of its plant and held a ceremony to celebrate the start of plant operations. The second-phase construction project began in September 2013. The investment in this project was nearly CNY 300 million. This project has expanded the annual production capacity of the plant to 1.5 million units of drive shafts.
Johnson Controls
CQYFJC starts operations of its new headquarters plant in Chongqing City to boost production capacity for automotive seats
Chongqing Yanfeng Johnson Controls Automotive Components Co., Ltd. (CQYFJC), Johnson Controls' automotive seating JV, has started operations of its new headquarters plant in Huangmaoping Industrial Park, Chongqing City. The new headquarters plant has an administration center, technical center and production facilities for foam, trim and complete seats. With the new headquarters plant in operation, CQYFJC's total annual production capacity is expected to reach the number of automotive seats for 1 million cars.
Plastic Omnium
Chinese JV to expand exterior parts plant in Chengdu City
In August 2014, Plastic Omnium S.A. announced that its Chinese JV, Chengdu FAW Faway Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd., will expand the JV's plant to meet growing demands of customers. The investment in the expansion work will be CNY 150 million. The total floor area of the plant will be increased from the current 20,000 square meters to 26,000 square meters. The expansion will bolster plastic-injection molding capacity and painting capacity at the plant.

Northwest China: Shaanxi Province

Establishment of new companies
Companies Activities
Eaton
SFGW and Eaton to establish JV in Xi'an City
In July 2014, Eaton and Shaanxi Fast Gear Co., Ltd. (SFGW), which is headquartered in Xi'an City, Shaanxi Province, announced that they have signed a contract to establish a new JV named Fast Eaton (Xi'an) Drive Systems Co., Ltd. The investment in the new JV will be CNY 100 million. SFGW will own 51% of the JV and Eaton will own 49%. The new JV will build a plant in Xi'an High-tech Industries Development Zone in Shaanxi Province. The plant will mainly produce transmissions and clutches for commercial vehicles.
Eberspaecher
Eberspacher and Shaanxi Wanfang Autoparts to establish exhaust system JV in Xi'an City
In December 2013, J. Eberspacher GmbH & Co. KG and Shaanxi Wanfang Autoparts Co., Ltd., a subsidiary of Shaanxi Automobile Group Co., Ltd., agreed to establish a new JV in Xi'an City, Shaanxi Province. The new JV named Eberspaecher Exhaust Technology Xi'an Co., Ltd. will produce exhaust systems for commercial vehicles. Shaanxi Wanfang Autoparts will own 51% of the JV and Eberspacher will own 49%. The new JV's annual production capacity will initially reach 100,000 exhaust systems for diesel and compressed natural gas (CNG) engines in 2015.
Enhancement of production capacity
Company Activity
TRW
TRW Dong Fang (Xi'an) to add airbag inflator production lines
In May 2014, TRW Dong Fang (Xi'an) Safety Airbag Inflator Co., Ltd., a subsidiary of TRW Automotive Holdings Corporation, announced that it will invest CNY 100 million in its production expansion project. TRW's subsidiary will add two production lines to produce newly developed SPI2 EVO inflators for side airbags. The subsidiary will also add one production line to produce DI10 inflators and will install related auxiliary equipment.

 

 



Activities in Northeast China: MAHLE Behr, Johnson Controls and Visteon

Northeast China: Jilin and Liaoning Provinces

New companies/plants start operations
Companies Activities
MAHLE Behr
Car air-conditioning plant in Shenyang City starts operations
In August 2014, Shenyang Behr Thermal System Co., Ltd., a subsidiary of MAHLE Behr GmbH & Co. KG's Chinese JV, started operations in Shenyang City, Liaoning Province. The subsidiary was formed in 2012 with a registered capital of CNY 100 million. The total investment in the subsidiary is CNY 260 million. The subsidiary has an annual production capacity of 500,000 car air-conditioning and cooling modules. Key customers are Shanghai GM, FAW-Volkswagen, FAW Car Co., Ltd. and BMW Brilliance Automotive Limited.
Visteon
Dongfeng Visteon Automotive Trim Systems and Kasai Kogyo to establish JV in Dalian City
In September 2014, Visteon Corporation announced that its Chinese JV, Dongfeng Visteon Automotive Trim Systems Co., Ltd., and Kasai Kogyo Co., Ltd will establish a 50-50 JV in Dalian City, Liaoning Province. The new 50-50 JV will be named Dongfeng Kasai (Dalian) Automotive Trim Systems Co., Ltd., and will be capitalized at CNY 65 million. The total investment in the new JV will be CNY 150 million. The new JV will supply interior parts to Dongfeng Nissan's plant in Dalian City.
Business reorganization
Company Activity
Johnson Controls/Visteon
Johnson Controls to transfer stake in Changchun FAWAY Johnson Controls Automotive Electronics to Visteon
In June 2014, Johnson Controls announced that it will transfer its 50% stake in Changchun FAWAY Johnson Controls Automotive Electronics Co., Ltd., a JV subsidiary between Johnson Controls and Changchun Faway Automobile Components Co., Ltd., to Visteon Global Electronic, Inc. The JV subsidiary will be renamed to Changchun FAWAY Visteon Automotive Electronics Co., Ltd. Changchun Faway and Visteon will each own half of the company.

 

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