GKN Group (China) Business Report FY ended Dec. 2015
Financial Target
-The Company announced that GKN Powder Metallurgy division has agreed to form a joint venture with Hongsheng Industrial Company Ltd., which is located in Bazhou City, Hebei Province, China. The new company will produce ferrous powders and is expected to become a world class powder metal manufacturer. (From a press release on July 23, 2015)
Contract
-The Company has become the first global Tier One supplier to design, develop and manufacture a complete all-wheel drive (AWD) system in China. The company supplies the complete AWD to SAIC Motors' new MG GS compact SUV, as well as the front wheel-drive system. The on-demand AWD system was developed and fully integrated into the MG GS by Shanghai GKN HUAYU Driveline systems (SDS), a joint venture between GKN and HUAYU Automotive. The MG GS platform sources the complete driveline, from transmission to wheel, from GKN. Front and rear sideshafts, propshafts, power transfer units and rear drive modules are all manufactured locally. The system's electromagnetic control device and hypoid gears are sourced from Japan. The complete system is assembled and delivered just-in-time to MG in Shanghai. (From a press release on April 23, 2015)
Financial Target
-Shanghai GKN Drive System Co., Ltd., a subsidiary of GKN, reported sales of CNY 700 million for the month of January 2015, achieving a double-digit growth rate on a year-over-year basis. In 2015, Shanghai GKN Drive System Co., Ltd. aims to increase its annual sales to CNY 9 billion and boost production and sales of constant velocity driveshafts to 22 million units. (From news releases issued by multiple sources on March 1, 2015)
R&D Facilities
-GKN has a Technical Center in its Shanghai plant, equipped with a full range of driveshaft test equipments, which is the forth R&D center of GKN worldwide. The company has already acquired the government’s approval for the facility’s new testing laboratory.
Investment in China
-Shanghai GKN HUAYU Driveline Systems Co., Ltd. (SDS), a Chinese joint venture between the Company and HUAYU Automotive, is investing USD 850 million over the next five years to meet growing demand for the company's driveline systems, all-wheel drive (AWD) and hybrid technologies. Construction of a large, new 22,000 square meter technical center in Shanghai for the joint venture is due to complete in December 2015. The facility will provide research and development capability for complete driveline systems, including vehicle integration, software development and vehicle testing capabilities. The company's production capacity will also be substantially increased in plants across Shanghai, Chongqing, Wuhan, Changchun and Yizheng, with a new assembly plant planned in Chengdu. GKN Powder Metallurgy will also expand its production capacity with a new plant in Danyang, due to open later this year. (From a press release on April 19, 2015)
-GKN Drive Shaft (Chongqing) Co., Ltd., which is a subsidiary of GKN, announced that it has held a an opening ceremony at its plant, where it completed the second phase of its construction project. The project involved an investment of nearly CNY 300 million. The plant is capable of producing 1.5 million drive shafts per year. (From news releases issued by multiple sources on January 5, 2015)