Delphi Packard Electrical/Electronic Architecture, a division of Delphi Corp, yesterday opened a wiring harness systems plant with an annual capacity of one million units in Shanghai to meet local demand.
As the company's largest wiring harness system manufacturing facility in Asia Pacific, the Delphi Packard Shanghai A5 plant is located in Anting in west Shanghai.
Relocating from an earlier factory, the facility is also Delphi Packard's eighth plant since the firm tapped the Chinese market in 1995. The company didn't provide financial details yesterday.
"The launch of the new plant will enable us to continue to localize manufacturing and technological development capabilities," said Majdi Abulaban, managing director of Delphi Packard E/EA Asia Pacific. "It is another important strategic step in growing our business in China and Asia Pacific."
Delphi, the world's largest auto parts maker, is adding plants in China, the world's second-largest auto market, even as it shuts factories and slash jobs to save costs in the United States, its home base.
China's sizzling 25-percent growth in car sales last year prompted auto makers from home and abroad to expand capacity, which also helped parts makers to boost their revenue.
Low labor costs also improve operational efficiency and help products stay price competitive.
The Delphi Packard Shanghai A5 will supply General Motors Corp's local joint venture as well as other locally-based joint ventures of US, European, Japanese, Korean and Chinese car makers.
Another two plants are also expected to begin production next year to further strengthen competitiveness, company official said.
Delphi's investment in China has totaled US$500 million so far.