Slovakia’s Ministry of Economy says it hopes the opening of Yanfeng Automotive Interiors’ (YFAI) new testing laboratory in Trencín will act as a catalyst for other manufacturing companies to set up shop in the region.
The country is fast emerging as one of Central and Eastern Europe’s production hubs as overseas companies look to cash in on a skilled labour force and attractive wage rates – although the latter look likely to rise as salary pressure starts to make itself felt across the region.
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Slovakia is engaged in a fierce battle for staffing as neighbouring Visegrad countries of Poland, Hungary and Czech Republic all compete for foreign supplier and OEM business, but Yanfeng’s Trencín decision is viewed as an endorsement of the country’s future potential.
The interiors manufacturer cut the ribbon at its new Technical Centre last week (27 April) where it evaluates durability and material tests for components including instrument and door panels, cockpits and floor consoles.
“Such centres are for the benefit of Slovakia, it is really a model example for other companies wishing to operate [here],” said State Secretary of the Ministry of the Economy of the Slovak Republic, Rastislav Chovanec at the Trencín centre.
“The testing taking place here is…of a smart industry concept that reports sophisticated data analysis. On behalf of the Ministry of the Slovak Republic, we are prepared to promote such projects in the future and it is to be hoped more brands will be launched in Slovakia in the years to come.
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By GlobalData“Having new investment in the region is a very positive affirmation – Yanfeng is a prototype of a very successful investor in Slovakia. Yanfeng has also come with other activities located in Bratislava and other activities present in Slovakia generating added value and new jobs.
“There is also good cooperation with the academic community, colleges and Universities.”
The Slovakian government has contributed EUR802,000 (US$875,000) to the EUR5m Technical Centre, broken down into EUR380,000 for machinery, EUR220,000 for the new workplace and tax incentives of EUR202,000.
Data from just-auto’s QUBE service shows YFAI claiming to be the largest automotive interiors supplier in the world, with an estimated global market share of 15%. Adient retains a 29.7% share of the venture, with Yanfeng Automotive Trim (SAIC Motor) the majority owner.
Global revenue is estimated at US$8.5bn (of which around US$1.3bn in Europe) and at a September, 2016 JCI presentation ahead of Adient’s formal launch, the all-new business booked total (1 October, 2015 to 31 August, 2016) was put at US$10.9bn. The company has set a target of annual revenue of US$10bn.
“Yanfeng has [a] focus on global automotive interior sales, not only for now but for the next couple of decades,” said YFAI VP engineering, Jason Xu in Trencín. “We are [a] 70:30 JV with Adient, [the] previous JCI. Total global sales last year were US$8.5bn; China is almost 46%, Europe, 18% and North America, 36%.
“The good thing is we [have] already booked a lot of new business and we hope total sales in the next couple of years will exceed US$10bn.
“Door panels are 13% [of business], instrumentation panels, 10%, consoles, 7% [and] cockpit systems are 5%.”
