GKN Driveline has detailed plans for the construction of a new plant in collaboration with Chinese joint venture Shanghai GKN HUAYU Driveline Systems (SDS). The facility development highlights the company’s ambition for growth in the Chinese automotive sector.
The facility, which is currently under construction by a third party in Pinghu, Zhejiang Province, will be leased by SDS once complete. The 107,640ft2 plant will initially manufacture gears for eDrive systems and will help meet increasing levels of electric and hybrid vehicle production in China. The site will also produce gear sets for all-wheel drive final drive systems.
China will become a major global production hub for GKN’s state-of-the-art electric drivelines and GKN forecasts its JV partner could be manufacturing one million eDrive units per year by 2025.
Greg MacLean, deputy general manager at SDS, said, “The growth of vehicle electrification is accelerating faster in China than anywhere else in the world. SDS, with strong support from GKN, is investing in people and facilities to meet the New Energy Vehicle market demand.
“Currently SDS is benefiting from a number of localizations built on GKN’s strong position in Europe and the Americas. Our long standing technical relationship with GKN affords SDS a unique position in the market to deliver innovative all-wheel drive and electrified technologies that our customers are demanding in China.”