Johnson Controls and Bohai Piston to Build 4th Automotive Battery Plant in China
www.chinatrucks.com:Johnson Controls is forming a joint venture with Binzhou Bohai Piston Co., Ltd., an auto parts affiliate of Beijing Automotive Industry Group Co., Ltd. (BAIC Group), to build its fourth Chinese automotive battery manufacturing plant. Aimed at serving both automakers and aftermarket customers, the facility will be located in Binzhou, Shandong Province.
"We understand China market dynamics, consumer demands and both short and long-term energy storage technology needs," said Joe Walicki, president, Johnson Controls Power Solutions. "This joint venture is a strategic move to position Johnson Controls and Bohai Piston to take advantage of what will be the world's largest automotive battery market by 2020."
At full capacity, the more than $200 million USD plant will employ 650 people who will manufacture both conventional flooded and absorbent glass mat (AGM) battery technologies. AGM powers start-stop systems, which increase vehicle fuel efficiency up to 5 percent, helping automakers meet increasingly strict environmental regulations.
"In the China market there is strong demand for auto part technologies that can improve fuel efficiency and there will be rapid growth for AGM batteries in start-stop vehicles," said Han Yonggui, BAIC Group director and chairman of Beijing Hainachuan Automotive Parts Co., Ltd. (BHAP). "The new joint venture will position both companies to take advantage of this market opportunity and we believe our cooperation with Johnson Controls, the global automotive battery leader, will help promote leading products and technologies in China."
By 2020, 50 percent, or about 15 million new vehicles will be equipped with start-stop functionality in China, saving an estimated 1.2 billion liters of gasoline per year. It also reduces greenhouse gas emissions by 2.8 million metric tons per year.
"With the combination of Johnson Controls leading technologies, large market demand from BAIC Group members and from the aftermarket, as well as favorable investment conditions in Binzhou, we believe the joint venture will be a great success," said Lin Fenghua, chairman of Binzhou Bohai Piston Co., Ltd.
"Our technology and battery capabilities, combined with the Bohai Piston growth platform and favorable Binzhou location, is a real winning combination," said Kenneth Yeng, vice president and general manager, Johnson Controls Power Solutions China.
Construction of the state-of-the-art facility is expected to begin in 2017, with production starting two years later. Once up and running, the plant will be able to produce 7.5 million batteries per year.
"Johnson Controls remains committed to serving our customers wherever they are in the world with investments such as this manufacturing plant and joint venture, which brings our leading technologies and global best practices to China," said Trent Nevill, president, Johnson Controls Asia Pacific.
Approximately 23.5 million new vehicles were produced in China in 2015, making it the world's largest automotive market. In 2015, Johnson Controls announced it signed an agreement to build a new battery manufacturing facility in Shenyang, China. It is expected to start operations in 2018. The company also has battery plants in Chongqing and Changxing, and an energy storage research and development center in Shanghai.
Views:0
- Baohai Piston Wins Award from FAW-VW 2017-01-16
- Semi-trailer transport can save 1,000 Yuan with help of boats across Bohai Bay 2012-09-11
- Huan Bohai Bay semi-trailer transport alliance to unit 2012-08-31
- Huan Bohai Bay semi-trailer transport alliance to unit 2012-08-31
- Johnson Controls Ready to Further Explore China’s Automobile Aftermarket 2015-11-16
- Johnson Controls Appeals Sales of Bankrupted Hybrid Battery Supplier 2012-12-26
- Weichai and American EControls Company Show Their Cooperation Advantages 2024-01-16
Submit Your Requirements, We Are Always At Your Service.
- Dongfeng Introduces 2025 New Products and Technologies to Global Dealers
- GAC Hino Showcases New Models at 2025 GAC Int'l Partner Conference
- Foton and Teld New Energy Form JV to Drive New Energy Heavy Truck Development
- JMC Overseas Sales Surge
- Indonesian Ambassador to China Visits Shaanxi Automobile
- FOTON Launches the "Auman Galaxy Global Experience Tour"
- Geely Expands into Pakistan with New Partnership
- Zhizi Auto Successfully Holds 2025 Product Launch Event
- FAW Jiefang and CATL Sign Strategic Partnership Agreement
- Driving Green Economy Forward: ABA Bank Partners with ZO Motors Cambodia
- China's New Energy Heavy Trucks See Record Sales in 2024
- January Heavy Truck Sales Drop 28% YoY to 70,000 Units
- November 2024: Heavy Truck Sales Hit New Highs
- November 2024: New Energy Light Truck Sales Hit 14,000 Units in China
- November 2024 Sees Surge in New Energy Heavy Trucks in China
- Heavy Truck Sales Reached 56,000 units in First Three Quarters 2024
- Heavy Truck Sales in September 2024
- Heavy Truck Sales Reach 59,000 Units in July in China
- Tractor Sales in H1, 2024 Reached 162,100 Units, Up 4%
- China's Truck Export Reaches 351,076 Units in H1 2024