) announced the opening of a new production facility and
engineering center at the Itatiba City in Brazil. This move will
likely enhance the position of the BorgWarner as the leading
supplier of advanced powertrain technologies in South America.
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The facility is located 80 km northwest of Sao Paulo and is twice
bigger than the existing facility in Campinas in Brazil.
BorgWarner will be producing eco-friendly technologies including
turbochargers, viscous fans and fan drives, engine timing systems
and emissions technologies for passenger cars and commercial
vehicles in the new plant.
BorgWarner accelerated the new campus in only 18 months followed
by the relocation of production capacity from Campinas facility.
The company believes that the local production unit together with
the engineering capabilities will satisfy the rising demand for
fuel efficient vehicles with reduced emission standard.
The new campus has a total area of about 100,000 square meters
with further space for expansion. The engineering center includes
four engine test stands for the development of latest powertrain
technologies for local customers.
In addition, the Itatiba City plant is in advantageous position
due to its strategic location near major development regions and
Sao Paolo, which attracts more number of multinational companies.
BorgWarner also expect that the new facility will receive the
Leadership in Energy and Environmental Design certification.
BorgWarner is a leading manufacturer of powertrain products for
the world's major automakers. The company's products are capable
of improving vehicle performance and stability, meeting
fuel-efficiency and emission standards. The company's largest
customers also include
Ford Motor Co.
Toyota Motor Corp.
BorgWarner posted earnings per share (excluding non-recurring
items) to $1.16 per share in the fourth quarter of 2012, down
2.5% from $1.19 in the same quarter of 2011. However, the results
surpassed the Zacks Consensus Estimate by 4 cents.
Revenues fell 3.1% year over year to $1.72 billion in the
quarter, but were ahead of the Zacks Consensus Estimate of $1.69
billion. Global light vehicle production inched up 1%, while
production in Europe, which comprises over half of the company's
sales, declined 11%.
BorgWarner currently retains a Zacks Rank #3 (Hold).