AUBURN HILLS, MI — The board of directors of BorgWarner Inc. 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."
The China Technical Center will support BorgWarner’s accelerating growth in Asia. According to the company, 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 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.
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.
According to the company, 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 facility in Saltillo, Mexico with an initial investment of $67 million. The plant is expected to employ several hundred people at full ramp-up.
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 percent 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.
For more information about BorgWarner, go to: http://www.borgwarner.com.
