Delphi to Establish Compressor Facility in Brazil
1 December 1999
Delphi to Establish Compressor Facility in Brazil
SAO PAULO, Brazil, Nov. 30 -- Delphi Automotive Systems will
establish an operation in Brazil to manufacture compact, high-efficiency
automotive air conditioning compressors, Delphi Chairman, CEO and President
J.T. Battenberg III announced today.
The wholly owned facility, Delphi's first compressor plant in South
America, will be located in Jaguariuna, some 100 km north of Sao Paulo.
Battenberg made the announcement in Brazil during the dedication of Delphi's
newest technical centre in Piracicaba.
"The South American air conditioning market holds significant potential,"
Battenberg said. "By establishing this plant in the region and doing so with
such advanced compressor technology, we're sending customers the message that
we're very serious about being a partner in their success, and also very
determined to be a strong leader in this developing market."
The plant will manufacture Delphi's Compact Variable Compressor (CVC), a
leading-edge design that the company's Harrison Thermal division is already
producing in Europe and Asia for automotive applications. It will also soon
begin manufacturing the CVC in the United States.
The operation will occupy an existing facility in Jaguariuna, covering
approximately 10,000 square meters. It will employ approximately 150 people
when fully operational, and is expected to begin CVC production in the fourth
quarter of 2000.
The plant will supply various South American-based OEMs, while also
supporting some of their export programs, noted Volker Barth, president of
Delphi Automotive Systems South America. "We want to sell our compressors not
only to the Mercosur region but also to other countries as well," Barth said.
In addition, the plant will serve the air conditioning aftermarket, Barth
added.
Delphi's current plans call for investing $45 million in the start-up of
this facility, which will have a volume capacity of 500,000 units. Dennis
Grable will serve as plant manager.
Earlier this year, Delphi announced that it would be establishing a
compressor facility in the Mercosur economic region, having not yet finalized
a site. The ensuing selection process was based on a number of key factors,
noted Sandra Y. McCulloch, Delphi Harrison Thermal Systems director of South
American operations. Those included access to a skilled labor force, local
supplier capabilities, and transportation logistics, among others.
"By announcing our intentions at that time, we let our customers know of
our commitment to providing localized manufacturing support, and that we were
moving aggressively with those plans," McCulloch said.
Delphi Harrison Thermal Systems already has an HVAC assembly and heat
exchanger manufacturing site in Piracicaba. It has been in operation for nine
years.
"This plant will further strengthen our presence in South America and help
us become the leader in air conditioning compressor manufacturing," Barth
said, noting that the CVCs produced in Jaguariuna will carry the same
technological standards of the CVCs produced at Delphi's joint venture in
France.
The CVC represents the next generation of variable displacement piston
compressor technology. Featuring a "swash" plate configuration, the CVC
produces less noise and vibration than contemporary designs, while delivering
high-speed operation and best-in-class output in relation to mass and volume.
With its numerous displacement offerings and a high degree of design
flexibility, Delphi's compact variable compressor is adaptable to a full range
of small, mid-sized and large vehicles, and it complements its variable
displacement compressor portfolio.
The CVC is currently manufactured at Delphi's joint ventures in France and
Japan. A second European venture to produce CVCs was recently announced, to
be located in Hungary. Also, CVC production is expected to begin in Ohio next
year.
This marks Delphi Automotive Systems' 13th wholly owned operation in South
America. It also has three joint ventures and two technical centres.
Delphi Automotive Systems , with headquarters in Troy, Mich.,
USA, is a world leader in automotive component and systems technology.
Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics & Mobile Communications -- provide
comprehensive product solutions to complex customer needs. Delphi has
approximately 201,000 employees and operates 168 wholly owned manufacturing
sites, 38 joint ventures, 51 customer centers and sales offices, and 27
technical centers in 37 countries. Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil. Delphi can be found on the Internet at
http://www.delphiauto.com