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Date: 2013-07-31

Shanghai GKN Building Axle Plant in China

Shanghai GKN Driveshaft Co. Ltd. (SDS) announced it will build a Yuan 500 million (USD $73 milllion) manufacturing plant to produce complete driveshaft assemblies in the Northeast China city of Changchun, home of FAW Group.

It will be SDS' third wholly-owned plant, producing driveshafts (halfshafts with CV joints) for the OEM automotive and truck market in China. The company's other plants are in the Shanghai Pudong Kangqiao Industrial Zone, in Shoupu and Kangqiao. The company also owns a majority stake in a plant in Chongqing through GKN Driveshaft.

Groundbreaking is set for late 2009. When complete, it will reportedly be the largest factory of its kind in northeast China.

SDS entered the Chinese market in 1988. Ownership is shared by GKN Driveline International GmbH (50%), SAIC Group(35%), State Development & Investment Company (10%) and Bank of Communication, Shanghai Branch (5%). The company currently employs more than 2,000 workers.

SDS sells its OE drive shift products to more than 30 automakers in China, including local operations of Volkswagen, Ford, GM, Fiat, Toyota, Nissan, Suzuki, JinBei, Peugeot-Citroen, BMW, Daimler Benz, Isuzu, Honda, and Mazda.


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