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Magneti Marelli invests Eur 36 mln in China

By Swati Sanyal Tarafdar,

Added 17 April 2015

In a new manufacturing plant in Xiaogan for the lighting systems and a larger and renovated production facility in Guangzhou for the electronic systems

Magneti Marelli inaugurated new plant in Xiaogan

Magneti Marelli is going through a further important growth in China with the inauguration of two production sites in the field of lighting and electronic systems, in two key regions for the Chinese automotive scenario - Xiaogan e Guangzhou. The actual total investment is worth about 36 million Euros.

Magneti Marelli inaugurated a manufacturing plant in Xiaogan (Hubei province), born of the Joint Venture called Hubei Huazhong Magneti Marelli Automotive Lighting Co. Ltd.

The JV resulted from the partnership between Magneti Marelli and China South Industries Group Corporation (CSI), through the subsidiary Hubei Huazhong Photoelectric Science and Technology Ltd, aimed at the manufacturing of lighting systems for the automotive sector.

The surface of the industrial plant in Xiaogan is of more than 44 thousand square meters, 28 thousand of which are covered. Inside the plant an important R&D centre has been created. The capacity of Magneti Marelli Automotive Lighting to design, develop and produce locally hi-tech products with a high added value, accordingly to the needs of the Chinese market and carmakers, is strategically increased with CSI.

In the start-up phases, the plant may count on a staff of over 160 people in 2015, with the expectation of a progressive people increase over the next five years.

The initial manufacturing capacity shall be of 500 thousand headlamps to achieve 2.5 million headlamps and 2.5 million rearlamps in 2019.

The initial total investment for the plant is worth 14 million Euros. "With these two new facilities, we keep on expanding our presence in China, which for Magneti Marelli is becoming more and more important" stated Eugenio Razelli, CEO of Magneti Marelli.


Magneti Marelli Electronics Systems plant inaugurated

The enlarged Magneti Marelli Electronics Systems plant in Guangzhou, in Guangdong province, is also inaugurated recently, with a total investment of 22 million Euros.

The Guangzhou plant has been the first Magneti Marelli installation in China in 1996. The first product was the instrument cluster of the Peugeot 505. Now, four business areas operate in the Guangzhou plant: instrument clusters, powertrain electronics, lighting and body electronics, infotainment and telematics

The plant is strategically located in the close neighbour of the Guangzhou airport and close to the automotive and electronics plants of the Huadu district.

The total surface of the industrial installation is of 50 thousand square metres (41 thousand of which are covered) and includes an R&D centre of 3,500 square metres. Presently 650 people work in the plant, with a plan of almost doubling the number by 2019.

The current manufacturing capacity is of 3.5 million automotive electronic modules, which will reach 10 million in 2019.

The enlargement has been made necessary by the progressive growth of the Chinese car market, with a consequent need of enlarging the products portfolio and increasing at the same time the capability of research, development and design, aimed at improving competitiveness.

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