Shanghai GKN Drive Shaft will build an RMB 500 million manufacturing base of drive shafts in northeastern Chinese city of Changchun.
China Industry News said the project will start construction later this year and upon completion, it will be the largest production facility of its kind in Northeast China.
It will make OE components for passenger vehicles such as cars and minibuses.
Shanghai GKN Drive Shaft started its business in September 1988 as one of the earliest foreign invested joint ventures for manufacturing auto parts in China. The shareholders of SDS are GKN Driveline International GmbH (50%), SAIC Group (35%), State Development & Investment Company (10%) and Bank of Communication, Shanghai Branch (5%).
The Autochannel reports that SDS is located in Shanghai Pudong Kangqiao Industrial Zone, where it now has two plants — Zhoupu and Kangqiao. The company owns a majority stake in a plant in Chongqing.
SDS sells its OE drive shift products to more than 30 automakers in China, including Shanghai VW, Shanghai GM, FAW VW, Dongfeng Peugeot Citroen, BMW Brilliance, Beijing Benz Daimler, Dongfeng Honda and Hainan Mazda.