SHANGHAI - Delphi Corp. will invest $40.5 million to enlarge an existing components plant near Shanghai to supply the world's fastest-growing major auto market.
Delphi, which has now invested just less than $500 million in more than a dozen factories around the country, expects that new capacity to come on-stream in the third quarter of 2004, the company said in a statement seen by Reuters on Tuesday.
The plant in Suzhou, an hour's drive from China's commercial capital, now makes circuit boards for vehicles.
About a quarter of the output from Delphi's China plants is now exported. The majority goes to the fast-growing local market, where vehicle production hit 4.4 million units last year, up 34.2 percent from 2002.
Consolidated revenue from China rose 50 percent to $650 million in 2003.
Delphi supplies the mainland joint ventures of Volkswagen AG and General Motors, as well as local firms such as SAIC-Chery Automobile Co. and Brilliance China Automotive Holdings Ltd.
The Michigan-based company has shed more than 17,500 jobs, or about 8 percent of its global workforce, since the end of 2000 as it struggled to diversify its customer base and become less reliant on business from former parent General Motors.
Delphi's main foreign rival in China is Visteon, the auto-parts spinoff of Ford Motor Co.