Delphi Automotive has broken ground on a new $100-million diesel fuel injection manufacturing facility in China.
The U.S.-based automotive supplier has chosen as location for the new plant the city of Yantai, Shandong Province.
The new facility will start manufacturing high-precision diesel fuel injection system components for light, medium and heavy-duty common rail systems starting from late 2013. Delphi hopes that the new plant will improve its ability to supply the rising customer base in Asia and reinforce its relations with the neighbouring community.
“This investment in Yantai represents Delphi’s commitment to be a strategic, market-relevant diesel fuel injection supplier in China,” said Rodney O’Neal, president and chief executive officer of Delphi.
In the first phase of the project, Delphi’s new plant will deliver components to three Chinese clients including Great Wall Motors, Shandong Huayuan Laidong Engine and Yuchai Group. According to Delphi’s claims, its diesel technology will allow the fuel injection system to offer accurate fuel quantities all through the existence of the vehicle as well as provide enhanced emissions control and acoustic performance.
The facility will also benefit from support from the company’s existing Delphi operation in Suzhou, which will supply engine control modules. The company currently employs 2,800 people in the Yantai municipality and Fushan district and expects to hire an additional 500 employees at the new facility.