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USA: Delphi invests $40 million in new China and Korea technical centres

By just-auto.com editorial team | 4 December 2003

Delphi will open two new technical centres in China and Korea and has committed $40 million to begin work on the new facilities immediately. Once the projects are complete, Delphi will have thirteen wholly-owned manufacturing sites, seventeen joint ventures and six technical centres in the Asia Pacific region, supporting both OEM and aftermarket sales and service.

"Our customers want increased local support in Asia Pacific, and we're going to give it to them," said Donald Runkle, Delphi vice chairman, Lean Enterprise and Chief Technology Officer. "The growth opportunities in China and Korea are great, but success in these markets demands a local presence. These new technical centres will provide our customers with stronger levels of technical support. For Delphi, these new centres will provide us with a more robust value stream and optimize the return on our R&D expenditures."

Delphi's 2002 consolidated sales in Asia Pacific increased more than 20% to $1.1 billion. This includes $777 million in sales to outside customers, with the balance representing sales to other Delphi units. Sales in China increased over 30% in 2002, the second straight year of over 30% growth. On a 2003 year-to-date basis, sales growth in Asia Pacific has exceeded prior year levels, led by China growth of nearly 40%.

The wholly-owned entity in China will be called Delphi China Technical Centre Co., Ltd. and will be located in Waigaoqiao Free Trade Zone in the Pudong New Area of Shanghai, China. The centre is expected to open in June 2005 and will initially employ 500 employees. Approximately 25 Delphi Delco Electronics Systems design engineers, systems engineers and managers are already working in a nearby facility and will transfer into the technical centre upon completion. The centre will develop components and support application and systems engineering for several local customers in the country and transplant automakers in addition to global customers.

The Delphi Korea technical centre will be located in Seoul, Korea. The centre is expected to open in June 2004 and will employ 240 employees. The technical centre will be a systems engineering centre and will initially focus on gasoline and diesel EMS systems.