GKN announces major expansion of its Joint Venture in China

19/04/2013 08:00
Group

GKN plc and HUAYU Automotive Systems Co. Ltd. (HASCO) have announced a major expansion of their Chinese joint venture – Shanghai GKN Driveshaft Co. Ltd. (SDS). This development will make SDS a leading supplier of all-wheel drive (AWD) and electric-drive (eDrive) systems to these fast-growing segments of the Chinese car market.
 
SDS has been operating since 1988 and is the largest driveshaft manufacturer in China producing both sideshafts and propshafts, supplying domestic and western brands from eight manufacturing plants. The SDS expansion extends the scope of the JV to cover the complete GKN Driveline capability – including AWD and eDrive components and systems.
 
As a result of this development, GKN Driveline’s wholly-owned facility in Shanghai will become part of the expanded JV.
 
Speaking in China, before the start of the Auto Shanghai 2013, Andrew Reynolds Smith, Chief Executive GKN Automotive, said: “China is the world’s largest car market and, together with our partner HASCO, GKN has built a fantastic market leading position for SDS over the last 25 years.  Today’s announcement provides the platform to accelerate our business in the fast growing Chinese SUV and all-wheel drive market. This is a very important step as we continue to grow by leveraging GKN’s leading technology and global footprint.”
 
Vehicle production in China is expected to continue to grow strongly. A key driver of this growth comes from the demand for SUVs and AWD vehicles which are outgrowing the market. GKN’s efficient and lightweight driveline technology positions SDS well to address the vehicle performance, emissions and fuel economy demands of the future.
 
The transaction remains subject to Chinese government approval. As a consequence of the change, SDS will change its name to Shanghai GKN HUAYU Driveline Systems Co. Ltd.
 
 
Notes to editors:
 
ABOUT GKN
GKN plc is a global engineering group – our technologies and products are at the heart of vehicles and aircraft produced by the world’s leading manufacturers. GKN operates four divisions: GKN Driveline, GKN Powder Metallurgy, GKN Aerospace and GKN Land Systems. Approximately 50,000 people work in GKN companies and joint ventures in more than 30 countries. We harness our considerable technology and manufacturing resources to supply the highest quality systems, structures, components and services.
 
GKN Driveline is the world’s leading supplier of automotive driveline components and systems. As a global company serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline components – for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics.
 
GKN Driveline is a leading global producer of CVJ Systems, AWD Systems, Trans Axle Solutions and eDrive Systems and operates in 23 countries at 57 locations employing approximately 22,000 people.
 
For further information, please contact:
 
Chris Fox, Director of Communications
Tel: 07767 647 404
 
Nicola Durman, Head of Corporate PR and Financial Communications
Tel: 01527 533495
Email: nicola.durman@gkn.com