Johnson Controls is expanding its operations in China. As announced by the company during its press conference at the 64th Internationale Automobilausstellung, Johnson Controls plans to produce an annual capacity of 2.4 million Start-Stop batteries by 2015 for local and global automakers.
"We project that China will continue to be the fastest growing market for automobiles through the end of this decade. At the same time, interest in the environment and more energy efficient vehicles is driving many of our OE customers to add Start-Stop vehicles to their fleets," said Kim Metcalf-Kupres, vice president strategy, sales and marketing at Johnson Controls Power Solutions. "We are working closely with our customers globally to ensure they receive the same levels of performance and reliable quality everywhere as we establish regional capacity in line with growing demand."
The company is exploring several potential locations for the new plant and expects to make a final decision in the coming months.
Johnson Controls investing $520 million globally for additional Start-Stop battery capacity
Johnson Controls anticipates the market for Start-Stop vehicles will grow to 35 million globally by 2015. To support this rapid growth, the company is investing $520 million worldwide over the next four years in additional production capacity for Start-Stop batteries: $280 million in Germany, an additional $140 million in the United States, and $100 million dollars in China.
Johnson Controls is currently the leading supplier of Start-Stop batteries in Europe through its VARTA® brand. In Germany, the company's plants in Hanover and Zwickau produce more than 11 million Start-Stop batteries annually. The company is also adding 6.8 million units of capacity in the United States.