GKN forges ahead with big expansion in China
MIDLANDS-based engineering group GKN is to undertake a large expansion of its Chinese operations in response to demand.
The firm’s Birmingham-based GKN Driveline division, which supplies 4×4 drive systems amongst other products, has announced it is to press ahead with a new forging plant in Wuhan.
Meanwhile, the parent group GKN is to open a GKN Sinter Metals facility in Yizheng, a new joint-venture for GKN Land Systems in Donhai and expand manufacturing plants in Changchun and Shenjian.
Scheduled for completion in July, GKN Driveline’s new 11,000m² precision forge in Wuhan will employ 200 people and produce components for CVJ Systems. The expansion, driven by customer demand, will mean more capacity and capability to support increasing demand from the vehicle manufacturers.
Steve Markevich, chief executive of GKN Driveline, said: “More and more vehicle manufacturers are expanding in the east and west of China. The Wuhan plant is located close to vehicle manufacturers and will provide continuing high levels of customer service.”
The new facility will allow GKN Driveline to increase annual automotive sideshaft production in China by 2m units, from 8.5m up to 10.5m.
“China plays a major role in our company’s overall growth strategy. With new production capacity coming on stream in 2013 and 2014, GKN employment in China is expected to continue to grow over the next five years,” added Markevich.
Responding to an increase in demand for SUVs in China GKN Driveline also is expanding propshaft production at its Shenjian plant.
“The demand in China for advanced AWD systems is increasing and following our acquisition of Getrag driveline products, GKN Driveline is ideally placed to support that. Our aim for the future is to be able to grow the business with products produced locally for the Chinese market,” said Markevich.
Production capacity for the company’s CVJ (constant velocity joint) systems is expected to grow by 40% over the next five years and AWD (all-wheel-drive) systems in China by 130%.
GKN Sinter Metals is to open a new 15,000m² plant in Yizheng. It will employ 500 people with the capacity to annually produce 100m precision parts for automotive engine, transmission, body and chassis applications, as well for power tools and a variety of other consumer and industrial applications. A new product and process development centre will be located at the Yizheng production site as well.
Peter Moelgg, president of GKN Sinter Metals Europe and Asia Pacific, said production at the Yizheng plant is expected to begin during the fourth quarter.
“We owe a special word of thanks to our customers and the many government officials who have made this new plant possible,” he said.
“The products we manufacture in Yizheng will help improve vehicle fuel efficiency, contribute to a cleaner environment and offer significant value to our customers.”
GKN Wheels, part of GKN Land Systems, recently signed an agreement with its Chinese partner − Lianyungang Huading Wheels − to form a joint venture in Donghai, near the city of Lianyungang, Jiangsu Province. Production of wheels for farm machinery and tractors began this month. The joint venture will employ 150 people and is expected to produce more than 650,000 wheels a year.
Redditch-based GKN said it continued to regard China as a key growth market for its products, expecting vehicle production in China to reach 15m units by 2014 and 20m by 2020.
