Automotive driveline components manufacturer GKN Driveline has broken ground on the expansion of its CVJ systems production plant in Chongqing, China.
For this expansion, GKN Chongqing Driveshaft (GDC), a joint venture by GKN, Shanghai GKN Driveshaft (SDS) and China ChangAn Automobile Group, is investing $43.9m.
The expansion includes the addition of 12,000m2 area in 2014. It will enable the company to localize CVJ system production for OEMs in the Chongqing area.
Expected to be operational in July 2014, the plant will have capacity of more than one million vehicle sets per year.
GKN Automotive CEO Andy Reynolds Smith said that Chongqing is the automotive manufacturing center for Southwest China, with fast growing customer demand and market forecasts of two million cars by 2015.
"Our rapidly increasing China footprint allows us to better serve our customers such as ChangAn-Ford, creating more efficiency in supply chains with localized supply and continued high levels of service," Reynolds added.
"This builds on our existing highly successful operational base of eight plants."
GDC mainly produces CVJ shafts for its customers including ChangAn-Ford, ChangAn-Mazda, ChangAn-Suzuki, ChangAn, JAC, Great Wall, BAIC Motor and SGMW.
