Japanese industrial machinery manufacturer IHI Corporation plans to invest JPY6bn (US$54m) to increase turbocharger production capacity worldwide.
The company expects increasingly strict emissions and fuel-economy regulations worldwide will lead to higher demand for turbochargers in the future, as vehicle manufacturers look to maximize power output of smaller engines.
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The company plans to increase capacity and output in key growth markets for these systems, including China and North America. The company also plans to reduce procurement costs by sourcing parts from high capacity operations in Japan, Thailand and Europe, according to local reports.
The company recently announced plans to lift global turbocharger production to 8 million units annually by 2020, a 30% increase from 2016 volumes.
Separately, IHI sold its stake in a turbocharger joint venture with Hyundai-Wia in South Korea just last month – a company set up just a few years earlier targeting the South Korean automotive market. IHI retains its technology licensing ties with the South Korean company, however.
IHI has produced more than 50 million turbochargers for automobiles, with a scope ranging from compact cars to large buses and trucks.
