Knorr-Bremse DETC Commercial Vehicle Braking Technology has held a groundbreaking ceremony at a 50,000 m2 site in Dongfeng Industrial Park, China, where a new plant is to replace the company’s three separate existing factories.

The aim is to expand manufacturing capacity, improve efficiency and reduce production costs with a view to strengthening cooperation with Dongfeng Commercial Vehicle.

Talks with the new top management of Dongfeng Commercial Vehicle were held to discuss further cooperation. Knorr-Bremse DETC is a joint venture between Knorr-Bremse and Dongfeng.

The new plant is scheduled to be completed and put into operation in August, 2021. The first phase includes a built-over area of up to 24,800 m² on a 39,000 m² site. Since the joint venture was founded in 2015, revenues have increased four-fold and are expected to reach five-fold by 2025. Dongfeng Commercial Vehicle is the joint venture’s main customer.

The core product portfolio includes brake control, ADAS/HAD, powertrain, air supply, wheel-end and steering systems.

“Moving to a new plant will open up additional opportunities for the joint venture to expand,” said Knorr-Bremse Asia Pacific (Holding), board member, Baoping Xu.

“This will serve our customers better and will help to boost the local employment rate. We are looking to live up to our social responsibility and continue our local care projects.”

The two parties agreed on the next steps in cooperation projects including AMT, ADAS and HAD.