18 July 2013

GKN Driveline invests in new precision forge facility in Wuhan, China

18 July 2013 - GKN Driveline continues to expand rapidly in China with the extension of a key manufacturing facility by Shanghai GKN Driveshaft Co., Ltd. (SDS). With an investment of approximately £15 million, a new 11,000 square metre precision forge facility in Wuhan will produce high accuracy components for driveline systems, with an annual capacity of 11 million precision parts.

Andy Reynolds Smith, CEO GKN Automotive, said: “Vehicle manufacturers are continuing to expand across China, the world’s largest vehicle market. The Wuhan plant is located close to customers in the centre of China. It will ensure we are ideally positioned to support the growth in the Chinese market with products produced locally, coupled with a high level of customer service, to further strengthen our customer support.’ 

China is a key growth market for GKN Driveline with vehicle production in the country expected to reach 22 million units by 2014 and 30 million units by 2020. In 1988, GKN was the first western company to invest in the automotive component industry in China. Through more than 25 years investment and development of our capabilities, GKN now operates from 14 locations in China with one under construction, employing more than 5,500 people and also serves a number of high growth markets including agricultural and construction. 

GKN Driveline is the world’s leading supplier of automotive driveline systems and solutions. As a global business serving the leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems – for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics.

Shanghai GKN Driveshaft Co., Ltd. (SDS) was established in 1988 and is one of the earliest foreign invested Joint Venture companies established for automotive components in China. The major shareholders of SDS are GKN Driveline International GmbH and HUAYU Automotive Systems Co., Ltd. With a land area of 320,000 square meters and more than 3200 employees, SDS currently operates three plants in Shanghai, a plant in Wu Han, a plant in Chang Chun and a Joint Venture in Chong Qing, serving all major domestic and foreign invested vehicle manufacturers.

GKN plc is a global engineering group. GKN operates four divisions: GKN Driveline, GKN Powder Metallurgy, GKN Aerospace and GKN Land Systems. Approximately 48,000 people work in GKN companies and joint ventures in more than 35 countries. 

Source: GKN