GKN Driveline plans to establish a new driveshaft plant in Wuhan as planned. At the end of this year, it will supply driveshafts for Dongfeng and Dongfeng’s joint venture with Honda and Citroen.
The new factory will cover 144,000 square feet (15,700 square meters contract) and will be operated by Shanghai Natieus Drive Shaft (SDS). After full production, it will provide more than 600 jobs and the annual output of the shaft will exceed 1 million. One.
Mr. Wang Haixiang, Director of China Business Development at GKN Group, said: “We have made a long-term commitment to the Chinese market. This long-term commitment is particularly important today in the global economic downturn and impact on the automotive industry.â€
Mr. Wang said that GKN has already had 250 years of successful engineering experience and will celebrate the 250th anniversary this year. He said: "In celebrating this unique milestone, we hope to continue expanding our business in China and strengthen our ties with Asia Pacific customers."
Mr. Wang added that the Wuhan plant will be managed by the oldest Sino-foreign joint venture auto parts company in China. GKN Driveline has been working with SAIC for 21 years to jointly produce transmission shafts for the domestic market. The joint venture agreement between the two parties will continue for another 50 years. The renewal ceremony will be held in London on April 24th (this Friday).
Mr. Wang said: "GKN is the first European auto parts supplier to invest in China and has now become China's leading manufacturer of drive system components."
GKN Driveline continues to introduce “breakthrough†technologies that reduce the weight of driveshaft components, which can improve fuel economy and improve overall vehicle performance.
Shanghai Natiefo Driveshaft has five factories in China. In addition to the transmission shaft factories in Wuhan and Chongqing, factories in Shanghai's Kangqiao, Shenjiang, and Zhoupu also set up factories. The company has invested more than 100 million U.S. dollars (equivalent to one billion yuan) in China to expand its production scale, producing more than 600,000 cross universal joint shafts, 5 million side shafts and 1.5 million universal joints annually.
Shanghai Natiev's main partner in China, SAIC, is one of China's top three automotive companies with sales of more than 1.1 million passenger cars and 500,000 commercial vehicles. In 2007, SAIC ranked among Fortune Global 500 companies and ranked 402th.
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