The Huaya and GKN Joint Venture to Invest a Huge Amount for Expansion
Published By : 22 Apr 2015 | Published By : QYRESEARCH
The joint venture between the two Chinese auto companies Huaya Automotive and GKN Automotive is investing an amount of US$850m in the next five years to cope with the rising demand for the company’s driveline systems such as hybrid technology and all-wheel drive. Automotive manufacturing across China is expected to grow exponentially at 42% by the end of 2022. As a result there will be an increase from 22.6m vehicles in the year 2014 to around 32.1m in the next five years. The demand for all-wheel drive systems is also anticipated to grow at an explosive 140% rate in the same mentioned period.
In 1988, GKN Automotive was the initial suppliers for Tier One which penetrated the China market and established its new joint venture named as: GKN Huayu Driveline Systems. The consistent growth every year has resulted in recording production of the torque and side shafts products in the year 2014. GKN Automotive will be encompassing GKN Powder Metallurgy and GKN Driveline, which operates around 11 plants in different parts of China, employing about 5,000 people.
The construction process of technical centre in Shanghai will be 22,000sq m for the joint venture which is expected to end in the month of December of this year. This unit will be section of the global technology centre network; which will also furnish research and development facilities for the complete driveline systems. It will also include the vehicle integration, vehicle testing, and software development capabilities. An 18-month long recruitment program is also planned for 200 technologists and engineers are also in the process.
One of the suppliers further informed that, this investment will take GKN’s position as the world’s largest driveline system partner to the automotive manufacturers across the globe.