Bosch to invest US$203m in Changsha, Suzhou plants
By Wan Zhihong (China Daily)
Updated: 2006-05-22 11:40
The world's No 1 automotive supplier, Bosch, on Friday unveiled plans to sink
160 million euros (US$203 million) into its car parts plants in Changsha and
Suzhou, in a drive to increase production capacity.
And company bosses
said the investment was only the tip of the iceberg, with plans to invest a
total of 620 million euros (US$787 million) in China over the next two
years.
The German industrial giant will pump 60 million euros (US$76
million) into its Changsha plant, the company's largest investment in Central
China.
The expansion will make the Changsha site Bosch's Energy and Body
Systems Division's main base in the country.
Meanwhile, a total
investment of 100 million euros (US$127 million) over the next two years, will
see the workforce at the company's Suzhou site grow from 160 to 1,000 by
2008.
The Changsha plant already covers the entire sector of vehicle
electrical systems from development to manufacture and distribution, while the
Suzhou site manufactures a range of Bosch automotive electronic components
including airbag control units, engine management units for diesel engines and
various other electronics.
"The latest expansions are part of our plan to
invest a further 620 million euros (US$787 million) in China between 2006 and
2008," said Bosch board member Rudolf Colm. "Through continuous investment and
localization we will introduce the most advanced technologies and manufacturing
know-how to China and hence support China's need for global industrial
competitiveness, environmental protection and resource-saving."
Up until
2005 Bosch had invested around 620 million euros (US$787 million) in its Chinese
bases. And the past five years alone have seen the number of Bosch manufacturing
facilities double, rising from 10 to 20.
Last year saw sales of 1.2
billion euros (US$1.53 billion) in China, a 15 per cent increase from 2004.
Today all of Bosch's business sectors operate in China, with plants
producing everything from automotive, industrial technology and building
technology to consumer goods.
The company also owns 14 subsidiaries, six
trading companies and has invested in six more joint ventures in
China.
Friday's announcement follows Bosch's opening of a 200 million
euro (US$254 million) development and manufacturing facility in Wuxi, Jiangsu
Province, in November last year.
"Our aim is to develop more and
more products in China that are tailored to the requirements of our local
customers," said Dr Volkmar Denner, board member responsible for automotive
electronics and energy and body systems.
In order to meet the growing
customer demand, the company also aims to increase its presence in the Chinese
market.
"Presently China accounts for 3 per cent of our global
market. Our target is to increase that to 5 per cent by 2008," said
Colm.
He added that in 2008 China will surpass Japan, becoming the
company's largest market in Asia.
While by 2006 China is expected to
become the world's third largest auto producer surpassing Germany and following
only the United States and Japan.
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