BorgWarner's New Plant in China - Analyst Blog
December 21 2012 - 4:10AM
Zacks
BorgWarner Inc. (BWA) has recently announced
the opening of a production plant at the Ningbo campus, China. The
new plant is expected to cater to the rising demand for
fuel-efficient systems and technologies in the rapidly growing
Chinese automotive market.
Together with the new plant, BorgWarner also inaugurated the
Engineering Center at Ningbo, which will be offering research and
development, applications engineering and management support. The
recent expansion of operations will strengthen BorgWarner’s
position as a leading supplier of advanced powertrain solutions in
the rapidly growing Asian markets.
The new plant encompasses 177,000 square feet of space. Morse TEC
silent chains, roller chains, VCT technologies and engine timing
systems will be produced in the plant for the major Chinese joint
ventures and domestic vehicle manufacturers. This will also support
the production and launch of about 50 programs by the company.
The Ningbo Engineering Center, spanning across 107,000 square feet,
will expand the global network of technical centers and improve the
company’s capability in introducing new technologies.
BorgWarner started its operation in Shanghai in 1993. It opened the
campus at Ningbo in 2006 and expanded the campus later in 2008 with
local production of fans and fan drives, which will reduce energy
costs by 30% to 60%. The company plans further expansion in the
Chinese market with its technologies to improve fuel efficiency,
reduce emissions and boost vehicle performance.
BorgWarner is a leading manufacturer of powertrain products for the
world's major automakers. The company operates in 57 locations in
19 countries, providing products that are capable of improving
vehicle performance and stability along with fuel efficiency and
emission levels.
These products are manufactured and sold worldwide, primarily to
original equipment manufacturers of passenger cars, SUVs, trucks
and commercial transportation products. The company’s largest
customers include Volkswagen AG (VLKAY),
Ford Motor Co. (F), Toyota Motor
Corp. (TM), and Honda Motor Co.
(HMC).
Currently, BorgWarner retains a Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating. We have a long-term
(more than 6 months) Neutral recommendation on the stock.
BORG WARNER INC (BWA): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
(VLKAY): ETF Research Reports
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