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BorgWarner's New Plant in China - Analyst Blog

Posted
12/21/2012 9:10:00 AM
By: Zacks.com
Referenced Stocks:BWA;F;HMC;TM;VLKAY

BorgWarner Inc. ( BWA ) has recently announced the opening of a production plant at the Ningbo campus, China. The new plant is expected to cater to the rising demand for fuel-efficient systems and technologies in the rapidly growing Chinese automotive market.

Together with the new plant, BorgWarner also inaugurated the Engineering Center at Ningbo, which will be offering research and development, applications engineering and management support. The recent expansion of operations will strengthen BorgWarner's position as a leading supplier of advanced powertrain solutions in the rapidly growing Asian markets.

The new plant encompasses 177,000 square feet of space. Morse TEC silent chains, roller chains, VCT technologies and engine timing systems will be produced in the plant for the major Chinese joint ventures and domestic vehicle manufacturers. This will also support the production and launch of about 50 programs by the company.

The Ningbo Engineering Center, spanning across 107,000 square feet, will expand the global network of technical centers and improve the company's capability in introducing new technologies.

BorgWarner started its operation in Shanghai in 1993. It opened the campus at Ningbo in 2006 and expanded the campus later in 2008 with local production of fans and fan drives, which will reduce energy costs by 30% to 60%. The company plans further expansion in the Chinese market with its technologies to improve fuel efficiency, reduce emissions and boost vehicle performance.  

BorgWarner is a leading manufacturer of powertrain products for the world's major automakers. The company operates in 57 locations in 19 countries, providing products that are capable of improving vehicle performance and stability along with fuel efficiency and emission levels.

These 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 Volkswagen AG ( VLKAY ), Ford Motor Co. ( F ), T oyota Motor Corp. ( TM ), and Honda Motor Co. ( HMC ).

Currently, BorgWarner retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term (more than 6 months) Neutral recommendation on the stock.



BORG WARNER INC (BWA): Free Stock Analysis Report

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