Automotive Interior Supplier Johnson Controls is Gearing Up To Expand Vehicle Component Plant in China

Company Will Grow Seat Trim Cover Operations Near Shanghai for Export to its Japan Plants

PLYMOUTH, Mich., June 21 -- Since entering China's emerging automotive market in 1997, vehicle-interior supplier Johnson Controls has invested millions of dollars, opened 12 facilities, and won sourcing contracts for dozens of cars and trucks. Now, it's gearing up for more growth with an $8 million expansion of a seat-component production plant near Shanghai.

To increase its component-manufacturing operations in China, Shanghai Yanfeng Johnson Controls Seating Company, Ltd. (SYJCS) will invest approximately $8 million in a seat-trim facility in the Nanhui area in Shanghai. Created in 1997, SYJCS is a joint venture between Johnson Controls and Yanfeng Visteon Automotive Trim Systems Company, Ltd. that operates 10 plants in China. The facility will make fabric and leather vehicle seat covers for export to Johnson Controls operations in Japan. These covers will be used primarily on seats made by Johnson Controls in Japan for integration into Nissan vehicles. From its facility in Nanhui, Shanghai, SYJCS has been supplying Johnson Controls-Japan with seat trim covers since 2000.

"We are pleased to announce this expansion of our automotive seating business in China - the fastest-growing market in the world," said Garry Cardwell, vice president and general manager, Asia-Pacific, for the Automotive Group of Johnson Controls. "Together with the other operations we've established in this nation over the past eight years, it truly reflects our ongoing viability, strength and growth in the market."

During the past two decades, Johnson Controls has established itself as the world's largest supplier of automotive interior systems and components. It entered the Chinese market eight years ago, with the launch of a joint-venture plant in Beijing. With 12 sites now operating across China, Johnson Controls has become the country's largest seating supplier and is focused on supporting the nation's indigenous automotive industry.

In China, Johnson Controls and its joint-venture partners have established substantial capabilities in developing and manufacturing automotive interior components. At company locations in Changchun, Chongqing and Shenyang, the company produces seat systems, foam pads, trim covers and metal frames. In Beijing and Shanghai operations, it's making seats, foam pads and trim covers. And in Guangzhou, the firm manufactures seats and foam pads. In addition, Johnson Controls operations produce door panels, floor consoles and electronics in Changchun; and seat adjuster assemblies in Shanghai.

During the past eight years, Johnson Controls has invested in an extensive array of capabilities in China beyond manufacturing. These capabilities include: product design and evaluation; prototype development; production verification; production support; benchmarking; industrial design; and local supplier development.

Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non- residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls , founded in 1885, has headquarters in Milwaukee, Wisconsin, U.S.A.