Nexteer Automotive along with Chongqing Changfeng, its joint venture partner in Chongqing Nexteering Systems, broke ground this week for its new Changfeng plant. This plant will help meet the growing customer demand in China for fuel-efficient technologies and support the conversion automakers are making from hydraulic power steering to electric power steering (EPS). The new facility is located in the Degan Industrial Park, which is part of the Jiangjin District, Chongqing.

“Nexteer Automotive is committed to better serve the Chinese market,” said Tao Liu, vice president and chief operating officer, Nexteer China Division. “This collaboration with Chongqing Changfeng is an important next step for Nexteer in southwest China. Our joint venture allows us to support the local manufacturing base with Nexteer’s leading technology.”

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With Nexteer’s electric power steering systems and Chongqing Changfeng’s local expertise, the joint venture will produce column assist EPS to support area manufacturers. Column assist EPS integrates the system electronics (motor, controller, and sensor) and the assist mechanism within the steering column and allows automakers to introduce new and increasingly complex steering functions.

At the ground breaking and signing ceremony, executives from China South Industries Group, Nexteer Automotive and Chongqing Changfeng joined local government leaders as well as more than 100 representatives from customers and suppliers including Changnan, Chongqing Changan, Changan Ford and Changan Suzuki.

Chongqing Nexteer Steering Systems was formally incorporated on 22 January. Each party contributed 50% of the more than US$4.8m needed to start the joint venture.

Construction on the plant, which is being designed according to Nexteer’s standard global footprint, begins in March and is slated for completion in October. Phase one of the construction is an 8,000 square-meter facility.

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“We choose Nexteer as our partner because of its leading global steering system technology,” said Zhijiang Dong, Chongqing Changfeng chairman and president. “Chongqing Changfeng specialises in the development, production and sales of automotive steering systems. Our products include mechanical steering, hydraulic power steering and electric power steering. We are very pleased to collaborate with the global steering and driveline leader, Nexteer, contributing to China’s domestic automotive market together.”