GKN Driveline has extended its parts manufacturing joint venture with Shanghai Automotive Industry Corporation for another 50 years at a ceremony in London.
The first joint venture in China, Shanghai GKN Drive Shaft Company, was formed in 1988.
Speaking in London, GKN chief Nigel Stein noted that GKN was the first major European automotive supplier to invest in China.
He said: “Shanghai GKN serves as an industry model for successful joint-venture operations in China and we anticipate continued growth for years to come.
“Over the last five years, Shanghai GKN has invested more than RMB 1 billion (about €100 million) to expand production in China, including major investments for new manufacturing facilities in Wuhan and Chongqing.â€
Shanghai GKN’s new 44,000-square-metre plant in Wuhan is on schedule to begin production later this year.
The company currently has five production facilities in China. In addition to its Wuhan and Chongqing plants, it has manufacturing operations in Kangqiao, Shenjiang and Zhoupu.
It produces more than 600,000 propshafts, 5m sideshafts and 1.5m universal joints every year.
Shanghai GKN’s major Chinese automotive partner, SAIC, is one of China’s top 3 automotive companies with sales in 2008 of more than 1m passenger cars and 500,000 commercial vehicles.
Great company for manufacturing operations. Thank for showing.