GKN is continuing to expand rapidly in China with a new driveline forging plant in Wuhan, a sinter metals facility in Yizheng, a new joint-venture for GKN Land Systems in Donhai and the expansion of manufacturing plants in Changchun and Shenjian.
Scheduled for completion in July, the 11,000 sq m 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.
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“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,” said GKN Driveline CEO Steve Markevich.
The new facility will allow an annual increase in automotive sideshaft production by 2m units to 10.5m.
The supplier is also expanding propshaft production at its Shenjian plant.
Production capacity for the company’s constant velocity joint systems is expected to grow by 40% over the next five years and all wheel drive systems China by 130%.
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By GlobalDataGKN Sinter Metals is to open a new 15,000 sq m 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.
Production is expected to begin during the fourth quarter.
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 for farm machinery and tractors will begin in May. The joint venture will employ 150 people and is expected to produce more than 650,000 wheels a year.
GKN continues expects vehicle production in China to reach 15m units by 2014 and 20m by 2020.
