BorgWarner Board Approves $120 Million in New Growth Investments for Technical Center in China, Operations in Mexico and Poland
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AUBURN HILLS, Mich., July 25 -- The Board of Directors of BorgWarner Inc. today approved $120 million in key investments for the continued growth of the powertrain technology supplier. These investments include a new Technical Center in China, a new production campus for the Drivetrain Group in Mexico and a production facility for turbochargers to be located in Poland. The spending for these projects will occur over the next four years.
"This is an exciting time for BorgWarner as our growth around the world is propelled by the need for vehicle fuel efficiency and improved air quality," said Tim Manganello, BorgWarner Chairman and CEO. "These growth projects are evidence of the momentum we are gaining as our innovative engine and drivetrain technologies like turbochargers and dual-clutch transmission modules lead the market in delivering benefits for drivers and the environment."
China Technical Center: The China Technical Center will support BorgWarner's accelerating growth in Asia. All of BorgWarner's products are expected to experience rapid growth as Chinese automakers vie for market share and global acceptance. The proposed four-story, 286,000 square foot (26,000 square meters) China facility will be part of BorgWarner's network of global technical centers. The center will house engine and drivetrain product research and development, application engineering and administration. Product development will support the needs of Chinese vehicle makers as well as support other global and regional customers. The company expects to invest $35 million in the project which is anticipated to house over 300 people by 2012.
Drivetrain Campus in Mexico: The new Drivetrain Campus in Mexico will support the company's first North American program for dual-clutch transmission modules as well as other transmission and all-wheel drive business. The plant is expected to produce some 680,000 dual-clutch transmission modules annually at full production volumes.
The introduction of dual-clutch transmission technology by a North American automaker is an important milestone in BorgWarner's globalization of this fuel-efficient, fun-to-drive technology. BorgWarner established its industry-leading position in Europe in 2003 with dual-clutch programs for VW/Audi, and in 2006 was awarded the first dual-clutch program in China with SAIC.
The BorgWarner Drivetrain Group is expected to build the 260,000 square foot (24,000 square meter) facility in Saltillo, Mexico with an initial investment of $67 million. The plant is expected to employ several hundred people at full ramp-up.
Turbocharger Operation in Poland: The demand for fuel-efficient, turbocharged engines, both diesel and gasoline, is driving the growth of BorgWarner's turbocharger business around the world. Additional capacity is needed to keep pace with the continued growth in demand for these engine technologies in Europe. Turbocharged diesel engine production is expected to grow almost 20% in Europe from about 7.6 million units today to 9.1 million units in 2011. Over the same period, the European turbocharged gasoline engine market is anticipated to double from about 0.9 million units to 2 million units. The $18 million facility in Rzeszow, Poland is expected to have capacity to make 500,000 turbochargers per year.
Auburn Hills, Michigan-based BorgWarner Inc. (NYSE:BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 64 locations in 17 countries. Customers include VW/Audi, DaimlerChrysler, Ford, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, BMW, Caterpillar, Navistar International, and Peugeot. The Internet address for BorgWarner is: http://www.borgwarner.com/.
Source: BorgWarner Inc.
CONTACT: Mary Brevard, BorgWarner Inc., +1-248-754-0881
Web site: http://www.borgwarner.com/
