Delphi constructs new plant in China

Delphi Automotive, which has been operating in China since 1993, invested US$100 million for the construction of a new diesel fuel injection plant in Yantai, located in China’s Shandong province; the new facility is expected to begin operations in late 2013. An existing Delphi operation in Suzhou, Jiangsu province, will supply engine control modules. “This investment in Yantai represents Delphi’s commitment to be a strategic, market-relevant diesel fuel injection supplier in China,” said Rodney O’Neal, president and chief executive officer of Delphi.
 
Delphi China has for the past 20 years enjoyed growth 10% higher than the market average. Its revenues increased by 21% in 2011 compared to 2010, and the company aims to double its sales in the country in the coming years. It employs approximately 28,000 people in Baicheng, Beijing, Changchun, Chengdu, Chongqing, Guangzhou, Shanghai, Shenyang, Suzhou, Wuhan, Wuhu and Yantai.
 
Currently, 16% of Delphi’s global revenue comes from the Asia Pacific [AP] region. According to Majdi Abulaban, president of Delphi Asia Pacific and Delphi China, the company’s goal is to increase AP’s share to 30% of the global revenue in the near future. Delphi’s expansion in China includes the opening of a new wire harness plant in Shanghai in 2011. Last year, Delphi revealed that its sales in the country had risen by 40% year-on-year (y/y) in 2010 to US$2 billion. (October 12, 2012)