Yanfeng Automotive Interiors (YFAI) says its EUR5m (US$5.5m) investment into a new test lab at Trencín in Slovakia and associated facilities forms part of its plans for sustainable growth as it looks to address hygiene issues associated with multiple usage.
Last week (28 April) saw a ribbon cutting ceremony at the Trencín facility attended by Slovakian government representatives – who ploughed EUR802,000 into the project – Chinese Embassy officials and senior Yanfeng executives.
Go deeper with GlobalData
Slovakia has been the recipient of major investment from its own authorities and overseas suppliers as manufacturers flock to the Central European country attracted by a skilled workforce and a low-wage economy.
Yanfeng’s Trencín site covers more than 4,800 square metres, with the half the space dedicated to the new laboratory where the supplier undertakes durability and material tests for automotive interior components, including instrument and door panels, cockpits and floor consoles, while other fields include ageing and smell evaluation.
The last sector is becoming more relevant as the industry witnesses an increasing move to car sharing, which could eventually morph into multiple users of the same vehicle being the norm as an antidote to traffic congestion – but which brings with it a demand for bacteria free interiors.
“You are sharing cars with other people – do I need to own my car?” YFAI VP and general manager Europe & South Africa Jochen Heier told just-auto at the Trencín facility in Slovakia. “Do I need to pay so much for garaging and parking?
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“To make it bacteria free – it is now coming to make it commercial. How to make sure people are in the car thinking they feel good and not thinking, there are 15-20 people [already using the car], what is good and bacteria free. We can learn from other areas such as train [s] and aircraft [interiors].”
Just how fierce the competition for securing labour in Slovakia is can be gauged from a small snapshot of Yanfeng’s Trencín requirements, which still seek a further 40 staff in engineering and technical positions, but the centre’s opening has nonetheless laid down a marker for the component producer’s future in the region.
“It is one of the big, big milestones,” added Heier. “We putting here a footprint in Europe and to serve the customer globally in Europe [where] we have 11 plants. Our move to the East in Europe was a consequence to the customers, what the OEM is doing. The OEM is moving into the East and we will follow.
“We are serving five customers; Daimler, BMW, FCA, Ford, GM and Volkswagen. There are also discussions – PSA or not. The European market showed very strong growth last year.
“We are thinking it will be above 20m in 2017 and then it will continue to grow to 21.2m – we would like to be part of this growth. Central Eastern European countries undertook [the] most significant growth, Slovakia, Czech Republic, Hungary and Poland showed 275% growth from 2006. The move we are making to the East is exactly the right one.
The extensive investment in Trencín is part of our long-term strategy for sustainable growth. By strengthening our network in Slovakia and the Czech Republic, we offer stability and continuity for our customers and employees.”
Yanfeng will showcase its ‘The Next Living Space’ interiors concept at this year’s IAA in Frankfurt with its technology aiming to marry that of autonomous driving, with up to 60% of ideas ready for market.
“The customer is using us as a trend-setter,” added Heier. “This future inside the car will change totally, absolutely because autonomous driving is coming.
“We are global and we are regional. There is a concentration of five product lines with a deep vertical integration of our manufacturing processes. Without our people, products make no sense and without our people customers are not there.”
Trencín’s new Technical Centre allows for a range of evaluation for interiors, including durability, safety, environmental effect, vibration, appearance material and emissions.
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.
