INA/FAG Bearings Begins China Manufacturing Expansion Program

INA and FAG bearings (divisions of parent INA Holdings, Germany) are having their manufacturing presence in China greatly expanded under an aggressive 6-year plan. The next planned manufacturing plants in China will be built alongside an existing plant in Jiangsu Province, near Shanghai, in Taicang's Economic Development Area, or "New Zone." Local authorities renamed the road running past the plants Schaeffler Road. The plant in Taicang now called Plant I was opened by INA in 1998 as its first bearing manufacturing operation in that country. INA (China) Co., Ltd., now employs approximately 190 people producing bearings and mechanical components. The first phase of the expansion, Plant II, is scheduled for completion by mid-2006. Plant II will be a diversified manufacturing facility, housing production of INA brand bearings, FAG brand bearings, FAG brand wheel-end modules, and LuK brand driveline components. Estimated to cost over USD $120 million by the time it is online, Plant II will cover almost 161,000 square feet and employ over 1,400 workers. INA/FAG's real commitment to manufacturing bearings in China is long-term, however. Plans are already underway for a second phase expansion, Plant III, tentatively scheduled for completion by mid-2010. Plant III will eventually push the company's manufacturing floorspace in Taicang close to one million square feet and employment over 4,000. No fewer than six construction phases are in the timetable for Plant III; their relative importance and completion targets will be determined by the sales and market lessons learned from Plant I and Plant II. Jurgen Geissinger, Schaeffler Group CEO, said, "China is one of the fastest growing markets for the automotive and supplier industry worldwide. Our investments allow us to supply our Chinese customers with state-of-the-art products at local conditions. Our local engineering center also helps us meet customer requirements quickly." INA is also adding a regional headquarters in Shanghai, alongside the new regional headquarters for Schaeffler Asia. The company supplies virtually the entire Chinese automotive industry, with customers from VW to GM, FAW, FAW-Fioat, Brilliance, SAIC, Cheery, and others. Schaeffler Group's sales in China were $120 million in 2003, out of its total Asian market sales of $900 million. That number is expected to grow rapidly over the next ten years, even as the Asian market sales shift toward favoring China as a manufacturing base and exporter