Garrett Motion Inc., a leading differentiated technology provider for the automotive industry, announced today it plans to expand and modernize its existing production facility in Wuhan, China, to meet increasing customer demand.
Garrett’s Wuhan plant opened in 2013 and currently serves major local and global automakers. The expansion is expected to increase the size of the state-of-the-art facility by approximately 50% and is scheduled for completion in the first quarter of 2022.
“Garrett has achieved significant growth in Wuhan since we commenced operations in this key industrial hub over seven years ago,” said Olivier Rabiller, president and CEO of Garrett. “Our production rate in Wuhan has grown more than 60% annually from 2014 to 2020. Further, our strong performance in all of China in 2020, despite the impact of a global pandemic, underscores the broader need to expand our footprint in the world’s largest auto market. We are pleased to strengthen our presence in Wuhan and remain committed to investing in the future success of our company while supporting high-tech enterprise for the benefit of the local community.”
China net sales in 2020 increased over 32% for the year led by a record performance in the fourth quarter following extended plant closures in Wuhan and Shanghai during the first quarter due to the COVID-19 pandemic. Demand for Garrett’s differentiated technologies has been driven by modern engine architectures with downsized engines, the growth in electrified powertrains, and more stringent fuel efficiency and emissions regulations, such as China VI. Currently, Garrett estimates turbo penetration in China for passenger vehicles is approximately 60% and growing.
Thierry Mabru, Garrett’s senior vice president, Integrated Supply Chain, stated, “The expansion of our plant in Wuhan is consistent with our focus on ensuring Garrett’s ability to support customers with value-added products that uniquely suit their needs. We plan to rollout the first high-speed production line with variable geometry technology for gasoline engines upon completion of our plant expansion in Wuhan. We expect to further drive greater technology content with our new electrification lines in Shanghai for hybrid and fuel cell vehicles. By strengthening our capabilities and increasing our production capacity throughout this strategic region, we intend to take full advantage of the attractive growth opportunities across our diverse portfolio of innovative technologies as we continue to propel the automotive industry into the future.”
In 2020, Garrett China earned several government and customer awards in recognition of its support to local communities during the height of the COVID-19 pandemic, the safe and rapid return of production activities and continued on-time deliveries. Most recently, Garrett China achieved a major operating milestone with the delivery of its 20 millionth turbo produced in the country.