MAHLE Group China Business Report FY ended Dec. 2013

Business Highlights

New Company

-Bosch Mahle Turbo Systems (BMTS), a joint venture between Bosch and Mahle, announced that it has established Bosch Mahle Turbo Systems (Shanghai) Co., Ltd., a wholly owned production subsidiary in Shanghai, China. The subsidiary is constructing a factory on a 5,000-square-meter-plot within the premises of Mahle’s existing Shanghai facility. The new plant will be operational in the first quarter of 2014, and will initially produce turbochargers and gasoline engines for the Chinese market. Approximately 100 employees from BMTS Austria and BMTS Germany will be transferred to the Shanghai Plant. The plant will be able to produce 1 million turbochargers per year. (From a press release on February 14, 2014)

Off the Production Line
-Mahle Piston Rings (Yingkou) Co., Ltd. announced that it has produced over 10 million pistons during 2013. The company aims to increase its annual production volume to 18 million pistons by 2018, while increasing the production volume of piston rings and bearing bushes, too. The expansion is expected to boost the company’s yearly sales to over CNY 1.7 billion. (From news releases issued by multiple sources on December 12, 2013)

Sales of subsidiary for FY2012

-Mahle Donghyun Filter Systems Co., Ltd. achieved an annul increase of about 20% in the last 5 years. In 2012, Mahle Donghyun Filter Systems reached sales of 547 million yuan, with an increase of 25.7% on year-on-year basis. Its main customers are Shanghai GM, FAW Volkswagen, BMW brilliance, Shenyang Mitsubishi and Dongfeng Peugeot Citroen.(From a press release on February 22, 2013)


R&D Structure

Mahle established MAHLE Technologies Holding (China) Co. Ltd. in the Shanghai Industrial Development Zone in order to cater to the Chinese market. Mahle China R&D Center, the technical division of the new company, conducts development activities for Mahle's subsidiaries in China. The second phrase of MAHLE Technologies Holding (China) Co. Ltd. R&D center starts operation on 13 November, 2012. It covered nearly 9,000 square meters of additional lab and office space.

Name Mahle China R & D Center
Year established 2005
Start of operations April, 2006

Investment Activities

Investment in China

-MAHLE established a new production base for automotive filters in Wuhan. The total investment in the plant will be EUR 75 million. The plant will start operations in July 2014. MAHLE plans to produce automotive filters and engine parts including air filters, intake manifolds, cylinder head cover modules, and engine oil coolers. These products would be supplied to various automakers including Dongfeng Peugeot-Citroën, Dongfeng Nissan, Dongfeng Honda, Renault, and General Motors. (From a press release on October 31, 2013)

-In 2014, the Group will have four new plants in China and Indonesia which will come into operation.