GKN Driveline Torque Technology has started production at its new wholly owned facility in Pudong, Shanghai, China.

Volume production has now started of transmission differentials for major domestic and overseas vehicle manufacturers.

Graeme Walford, managing director, GKN Driveline Torque Technology, said: "This is an important milestone for our expanding presence in China. From our new strategically located base we can now offer a wider range of our torque products to the Chinese car industry as well as for export."

In addition to the supply of transmission differentials, GKN Driveline is developing three all wheel drive (AWD) power transfer unit (PTU) applications which will enter production from 2009 for Chinese and Asian vehicle manufacturers.