USA: Delphi to invest $US243.5 million in Kokomo Delco plant
Delphi Corporation on Monday said it would invest more than $US243.5 million during the next three years in electronics product lines at its Delco Electronics subsidiary in Kokomo, Indiana.
The funding follows a corporate strategy of targeting capital investment in sophisticated electronic products as the company continues its shift away from mechanical components and lower margin products, Delphi said in a statement.
Delphi is investing $38.7 million in its Recognition passive occupant detection systems and $110.5 million in next generation engine control modules. The company is also allocating $80.5 million to its integrated circuits fabrication facility and pressure sensors and will also spend $14 million on engineering equipment.
"The investment will be used to further the development of these high-tech product lines at our engineering and manufacturing facilities in Kokomo," Delphi Delco Electronics president Jeff Owens said.
"The corporation's investment not only follows our corporate shift toward allocating capital investment in Delphi's electronics, but also shows our confidence in the abilities of our Kokomo workforce to design and produce leading-edge electronic products for our global customers."
Delphi's capital investments in new technologies has averaged over $1.2 billion a year during the last three years, in spite of challenging economic and market conditions.
As the company has focused on electronic component production, it has placed more than 80% of its capital investment in electronic and electronically enhanced mechanical technologies.
"Investment in our future is keeping us on the cutting edge of the electronics business," added Owens.
"Even through the recent economic downturn, Delphi's been diligent not to cut its capital investments in strategic product lines, a critical strategy to help maintain an industry leading position."