20th Apr 2015 13:20
LONDON (Alliance News) - GKN PLC Monday said its joint venture in China with HUAYA Automotive is to invest USD850 million in the next five years in order to meet a growing demand for its driveline systems, all-wheel drive and hybrid technologies.
The FTSE 100-listed aerospace and automotive components company said the construction of a new 22,000 square metre technical centre in Shanghai is set to complete in November this year. The new facility will provide research and development capacity for driveline systems. The joint venture will also increase production capacity at its plans in Shanghai, Chongqing, Wuhan, Changchun and Yizheng, along with a new assembly plant in Chengdu.
"The scale of this investment reflects our commitment to global and domestic auto makers as their businesses in the world?s largest vehicle market evolve. Cutting edge technology is critical for our customers globally and in China, particularly as the next generation of AWD and hybrid vehicles launch creating new levels of competitive advantage in the market," said GKN Automotive Chief Executive Andrew Reynolds Smith.
Shares in GKN were up 1.1% to 365.3 pence on Monday, one of the best performers in the FTSE 100.
By Sam Unsted; [email protected]; @SamUAtAlliance
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