) announced that it is constructing a new production facility in
the industrial zone of Lanheses, Viana do Castelo, Portugal. This
new facility will help BorgWarner in fulfilling the rising demand
for exhaust gas recirculation (EGR) products used both in
passenger cars and commercial diesel vehicles. Thus, the expanded
production will further strengthen BorgWarner's position as the
leading supplier of EGR technologies in Europe.
The new facility presently covers 160,000 square feet of
manufacturing space and is located about 31 miles or 50 km away
from the current site at Valenca. BorgWarner started building the
plant last month and expects to complete it by next year.
BorgWarner will be producing EGR coolers, EGR tubes and glow plug
control modules at this new facility. These are eco-friendly
technologies used in modern engines to reduce emissions.
BorgWarner anticipates that the global market for EGR systems
will expand to 33.3 million units by 2018 from 21.2 million units
BorgWarner will benefit from rising demand for fuel efficiency
together with enforcement of new government regulations regarding
emissions. With the enforcement of Euro 6 emissions regulations
in Europe from 2014, the demand for advanced diesel cold-start
technologies should rise, which will further augment the
BorgWarner is trying to increase the production of diesel
cold-start technologies, which are currently produced at the
Valenca plant. This new plant is part of of the strategy for
achieving the same. The company plans to shift the production of
diesel cold-start technologies from the Valenca plant to Viana do
Castelo by 2015.
BorgWarner is a leading manufacturer of powertrain products for
major automakers. The company's products are capable of improving
vehicle performance while meeting fuel-efficiency and emission
standards. It currently retains a Zacks Rank #2 (Buy).
The company operates in 57 locations in 19 countries.
BorgWarner's products are manufactured and sold worldwide,
primarily to original equipment manufacturers of passenger cars,
SUVs, trucks and commercial transportation products. The
company's largest customers include
Ford Motor Co.
Toyota Motor Corp.
Honda Motor Co.
BORG WARNER INC (BWA): Free Stock Analysis
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TOYOTA MOTOR CP (TM): Free Stock Analysis
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