Siemens Diesel Systems Technology, LLC (SDST), a joint venture company formed by Siemens Automotive Corp. and International Engine Corp., a wholly-owned subsidiary of Navistar International Corporation (NYSE: NAV – news), today dedicated its new 200,500 square foot facility located in Richland County, S.C. The new operation represents a combined capital investment of approximately $100 million.
“This state-of-the-art facility will not only manufacture an environmentally friendlier diesel injector, it will do so in closer harmony with the natural habitat of Richland County,” said SDST President and CEO Ferol Vernon. “SDST would like to recognize Carlisle Associates and the University of South Carolina’s Department of Mechanical Engineering and School for Sustainable Studies for helping us build a facility as cutting edge as the products it will manufacture.”
SDST, formed in March 1999, and majority owned by Siemens Automotive, will manufacture low-pressure, common-rail digital valve fuel injectors for use in diesel engines designed and manufactured by International Engine Corp. The diesel injector incorporates proprietary digital valve technology under license from Sturman Engine Systems, LLC.
“Being a part of SDST and this manufacturing plant complements our environmental initiatives designed to increase engine performance and respond to demands for clean air solutions,” said Dan Ustian, president, International Engine Corp.
A key element of International Engine Corp.’s clean diesel environmental strategy, the electro-hydraulic fuel injection system is scheduled to be ready for commercial use by 2002. Production levels are expected to reach four million injectors per year by 2004, establishing SDST as a leader in the North American market for diesel fuel injectors.
The SDST facility includes 174,500-square-feet of space dedicated to manufacturing, testing and assembly. An additional 26,000-square-feet houses administrative and engineering associates. Production is expected to start March 2001 utilizing an initial workforce of 100 people, with the expectation to expand to nearly 450 employees by October 2004.
“When I met with Siemens at their headquarters in Germany two years ago, I knew that this expansion belonged in South Carolina,” said South Carolina Governor Jim Hodges. “Our relationship with them has grown stronger and deeper as this project has developed and we are delighted that more than 400 South Carolinians will be able to explore new opportunities with them.”
Siemens Automotive is a tier-one supplier of automotive and electrical- electronic systems and components with applications covering gasoline and diesel powertrain systems, safety and chassis systems, body electronics, electric motor drives and driver information systems. Worldwide sales in fiscal year 1998/1999 totaled $3.6 billion.
Navistar International Corp. is a leading producer of medium trucks, school buses, heavy trucks, service vehicles, mid-range diesel engines and parts and service sold under the International brand. The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Through its finance subsidiary, the company also provides financing and liability insurance for its dealers and customers. With world headquarters in Chicago, Navistar had 1999 sales and revenues of $8.6 billion. Additional information can be found on the company’s web site at www.nav-international.com