Valeo establishes new technical centre in China

Beijing, China, October 30 -- Valeo, present in China for nearly ten years, today announced the construction of a new technical centre in Wuhan. The technical centre will develop advanced automotive lighting systems for both Chinese and European car makers. This latest development is part of Valeo's strategy to expand its presence in the growing Chinese automotive market.

When fully operational, the new technical centre can accommodate up to 120 qualified engineers and technicians who will initially focus on developing automotive lighting systems for Chinese customers. The new facility is due for completion in 2004.

"This investment is an important step in Valeo's expansion to support the rapidly evolving Chinese market, an automotive market that is forecast to become the third largest market in the world. Our Shanghai Purchasing Office already enables Valeo's worldwide divisions to source in China and now the new technical centre signals our intention to invest in the local development of technology and new product designs for a range of customers around the world," said Thierry Morin, Chairman & Chief Executive Officer, visiting China this week.

Since entering the Chinese automotive market in 1994, Valeo's sales in the region have grown by around 30 percent annually and reached 230 million dollars in 2002. With eight joint ventures and three licensees, Valeo employs 2,300 employees and serves all major passenger car and truck OEMs in the Chinese market. Valeo produces a wide range of automotive systems and components: lighting systems, starters and alternators, wiper systems, security systems, heating, ventilation and air conditioning systems, motors and actuators and clutches.

Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 125 plants, 55 R&D centres, 9 distribution centres and employs 67,000 people in 25 countries worldwide.