Johnson Controls is to invest US$118m to build a third automotive battery plant in China in Chongqing adding to the company’s existing plants in Shanghai and Changxing.
“Our recent investments in China are an indication of the importance of this market for Johnson Controls,” said Johnson Controls power solutions president Alex Molinaroli.
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“In three years we will be growing from a single plant to three plants that will produce more than 18m automotive batteries annually. These plants support our plan to install capacity for 30m batteries annually in China by 2015.”
The 30,000 square-metre plant will produce automotive lead-acid batteries using Johnson Controls power solutions technologies, including its PowerFrame grid technology.
The new facility will be located in Fuling, which is in the central part of Chongqing, and has a population of 1.1m people and strong logistics infrastructure with three major highways, three railways, and two main ports.
The plant will have capacity to produce 6m batteries annually with the start of production slated to begin in 2012, subject to receipt of regulatory approvals.
“Motorcycles and cars have become Chongqing’s leading industry, with 21 automakers located there alone,” said vice president and general manager for Johnson Controls Power Solutions Asia Pacific vice president general manager Shu Yang.
“The city is home to 50 universities, 400 technological schools and 100 academies – and more than 400,000 college graduates every year.”
Ground breaking for the plant will take place in January 2011, with production slated to ramp up beginning in January 2012.
In addition to the new Chongqing plant, Johnson Controls’ previously announced Changxing automotive battery plant will launch production in early 2011 with an expected capacity of 8m batteries annually.
The company will later begin locating its fourth plant, with a capacity of 6m batteries in the northern region of China later this year.
