Delphi Announces Plans For New China Facility
Delphi Electronics & Safety Expands Manufacturing Footprint In China
KOKOMO, Ind., Feb. 23 -- Delphi announced that it will expand its current manufacturing capability in Suzhou, China. The company will invest $40.5 million to build two new manufacturing modules for Delphi Electronics & Safety Division to produce various electronic products in the Suzhou Industrial Park.
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"China is one of the fastest growing markets in the world for vehicle manufacturers," said Jeff Owens, president of Delphi Electronics & Safety. "As our customers expand their market base in this region, it is imperative that our manufacturing footprint support their growth."
Last year, Delphi remained the largest foreign-invested automotive supplier in China. The country is now the world's fourth-largest automotive producer and moved into the No. 3 position for sales during the year. Calendar year 2003 consolidated revenue for Delphi China was $650 million, representing an approximately 50 percent year-over-year increase.
Owens said, "This investment helps us build upon the excellent relationships we enjoy with existing customers, and enhances our association with those customers expanding around the world."
The new Delphi complex will be built in phases with one module going up first. Construction has started on the new facility with plans for estimated completion by third quarter 2004. Manufacturing capability will cover the entire production process from circuit board assembly to packaging and testing.
Delphi Electronics & Safety established its first facility in Suzhou in 1996. The current facility in Suzhou produces audio systems, body computers, powertrain controllers, security products and airbag controllers. In December, Delphi announced it is investing $50 million in a new R&D technical center in Shanghai.
In China, Delphi operates 14 joint ventures and wholly owned foreign owned enterprises including the Suzhou project, eight technology transfer agreements as well as a technical center and a training center. Delphi supplies nearly all of China's OEMs.
For more information about Delphi and its operating subsidiaries, visit Delphi's Virtual Press Room at www.delphi.com/media .
All statements contained or incorporated in this press release which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, savings expected as a result of our global restructuring or other initiatives, portfolio restructuring plans, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2002. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and other global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; the success of our efforts to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.
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