ITT Industries Expands Investment in China
18 November 1997
ITT Industries Expands Investment in China with Manufacturing Plant Renovations and Agreements with Chinese Universities
SHANGHAI, Nov. 18 -- Expanding its investment in China, ITT
Industries' automotive division, ITT Automotive (ITT Automotive),
and its joint venture partner Shanghai SIIC Transportation Electric Co. (STEC)
today unveiled the first phase of its newly renovated automotive components
manufacturing plant near Shanghai. Additionally, ITT Industries CEO Travis
Engen announced two Memoranda of Understanding with Tsinghua University in
Beijing and Shanghai Jiao Tong University that emphasize continued engineering
and management education and industry development in China.
"ITT Industries is very enthusiastic about prospects for growth in China,"
said Engen. "We have invested well over US$100 million along with our joint
venture partners in the last five years and we expect to invest another
US$50 million in the next three to five years. Additionally, ITT Industries
had the pleasure of signing formal agreements with Tsinghua University in
Beijing and Shanghai Jiao Tong University demonstrating our commitment to
helping educate young engineers and managers. It is our belief that
facilitating this engineering and management talent will foster continued
economic growth and prosperity in China in the years ahead which will benefit
ITT Industries and its venture partners."
The ITT Automotive and STEC joint venture, ITT Shanghai Automotive
Electric Systems Co. (ITT SAES), manufactures wiper systems, heating,
ventilation and air conditioning assemblies, fractional horsepower motors for
four-wheel anti-lock braking systems (ABS), window lifts and other automotive
and industrial applications.
The improvements to the Shanghai plant, located in the Minhang Economic
Zone, include new assembly line equipment for wiper motors, wiper linkages,
four-wheel anti-lock brake system (ABS) motors, window lift motors, wiper arms
and blades; a new armature line for window lift motors; a reconstruction of
the fabrication and machining areas as well as the warehouse, in-coming and
maintenance areas; and lastly a new inspection area with the latest associated
test equipment. ITT SAES is already supplying wiper systems and other
components to major OEMs, such as Shanghai VW, and is also preparing to meet
requirements of the newest OEM, Shanghai General Motors. It expects to be
ISO9000 certified by the end of this year.
As part of the agreement with Tsinghua and Shanghai Jiao Tong
Universities, ITT Industries and the universities will jointly develop and
sponsor annual seminars for university and business communities. The first
presentation, entitled "The Essence of Deming," is scheduled for early
December and will focus on total quality management and will be given by a
leading expert in the field. Also as part of the agreement, internships and
joint research and development opportunities at ITT Industries and scholarship
programs will be established at the universities.
Additionally, ITT Automotive's presence in China is further highlighted by
recent technical innovations at the Shanghai Automotive Brake Systems Company
(SABS), a joint venture with Shanghai Automotive Industry Corporation (SAIC).
The SABS plant, also located near Shanghai in the Jiading Special Economic
Zone, recently installed a new MK20 four-wheel anti-lock brake system (ABS)
assembly line with full scale production to begin in the fourth quarter of
1997 for volume customers. SABS is proud to be a prime supplier of brake
components to SVW and FAW/VW and will also supply calipers for the Shanghai
General Motors project. SABS expects to be ISO9000 certified by the end of
this year.
New projects under negotiations for ITT Automotive include ventures for
automotive switches, brake actuation, and automotive fluid handling. In
addition to ITT SAES and SABS, ITT Industries business in China includes ITT
Flygt Shenyang, a wholly owned company, which produces submersible pumps for
wastewater treatment and industrial applications; Nanjing Goulds Pumps Co., a
joint venture with Nanjing Deep Well Pumps Co., located in Luhe county near
Nanjing, which produces submersible pumps, turbines and casting for potable
and wastewater applications; and ITT Cannon Zhenjiang, a joint venture with
Zhenjiang Connector Factory, outside of Nanjing, which manufactures mobile
phone connectors, telecommunications switching systems and industrial
connectors.
As part of its overall commitment to China, ITT Industries has established
a holding company, ITT Industries (China) Investment Company, Ltd., based in
Beijing and responsible for business development, investment and management
support for its in-country operations.
ITT Industries, Inc. (http://www.ittind.com) is a leading worldwide
diversified manufacturing company, with 1996 sales of $8.4 billion in its
three primary business segments: Automotive, Defense and Electronics, and
Fluid Technology. ITT Automotive is one of the largest independent suppliers
of systems and components to automotive manufacturers. ITT Defense and
Electronics is a leader in the design, manufacture and support of high
technology electronic systems and components for defense and commercial
markets. ITT Fluid Technology is one of the world's leading manufacturers of
products, systems and services for the movement, measurement and control of
fluids. ITT Industries became an independent company in December of 1995 as a
result of the separation of ITT Corporation into three distinct companies.
SOURCE ITT Industries, Inc.