China Automotive Systems has begun construction of the first stage of a factory in Sao Paulo, Brazil which will assemble steering units sold to South American automakers.
CAAS began exporting to customers in Brazil in August 2012. The new factory will assemble complete steering products from components exported from China. Initial capacity is 100,000 sets and expansion up to 700,000 units to meet growing demand has been planned. The cost of this first stage is expected to be about US$3m. Operations are scheduled to begin in April 2015.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
CAAS currently exports steering products to Chery Auto’s Brazil car plant and an unnamed “global Tier-1 vehicle manufacturer” as well as supplying the aftermarket.
Chairman Hanlin Chen said: “We are building this facility to accommodate the growing interest in our steering products in the important South American markets [where] Chinese vehicle OEMs are setting up operations.
“We believe customers in South America are recognising the value of our high-quality, advanced steering products to their vehicles. We look forward to further increasing our presence [there] and [in] other global automotive markets.”
Based in Hubei Province, China Automotive Systems supplies power steering components and systems to the Chinese auto industry, operating through eight Sino-foreign joint ventures. It offers a full range of steering system parts for passenger automobiles and commercial vehicles. Annual production capacity is over 4.5m sets of steering gears, columns and steering hoses.
Customers include China FAW Group, Dongfeng Auto, BYD Auto Company, Beiqi Foton Motor and Chery Automobile in China, and Chrysler Group in North America.
