Tata AutoComp sets up facility in Nanjing, China

30 April 2008

Will begin supplies by end of the month

To capitalise on the strong emerging automotive market of China as well as its strong manufacturing base, Tata AutoComp Systems has set up a Greenfield project in Nanjing, China. Spread over 26,000 sq mt, with a total planned investment of approx USD 15 million, this plant will manufacture high quality kinematic plastic components and sub-systems for the Chinese as well as global automotive market. The company has already bagged orders from GM for their European and Chinese operations as well as from Changan Ford in China.

Speaking on the occasion Mr. Rajiv Bakshi, President and Head Plastics Business, Tata AutoComp said: “We see a huge potential in China. To us, China is not just a manufacturing base, but a window to the global market. Our investments are keeping this promising future in mind. In a few years from now, I am confident that this plant would be catering to global automotive majors in the US, EU and other emerging markets including the domestic Chinese market.”

Nanjing Tata AutoComp Systems, a wholly owned subsidiary of Tata AutoComp was conceived in 2006, and today is almost ready to begin its first set of supplies to two of China’s leading automotive brands — Shanghai General Motors and Changan Ford, as well as to GM-Europe. In fact, from day one, this plant will not just cater to auto majors in the domestic Chinese market, but also export components to OE’s in the European market. The components manufactured by this plant include air vents, grab handles, cup-holders, ash trays, glove box and floor console. The company is looking at expanding its capabilities to manufacture larger parts like instrument panel, door panels and other large plastic parts in the near future.

This state-of-the-art plant houses all-electric injection moulding machines, including two component and gas assist injection moulding machines, with robotic take-out arms and an environment controlled automatic robotised paint shop. This gives Nanjing Tata AutoComp the ability to offer faster product launches and flawless quality.

In India, Tata AutoComp is a leading player in the automotive components and systems industry. Over the years, Tata AutoComp has invested heavily in developing a strong engineering base which has ensured early engagement with its customers. Tata AutoComp intends to leverage this advantage and will support the plant in China by developing products for the global market.

The company has already invested USD 7 million into building this plant and has plans to ramp up to double the capacity within the next two years. This plant will help generate employment opportunities in this growing industrial hub of China. Speaking on this, Mr. Amitabh Mathur, General Manager - Nanjing Tata AutoComp Systems, said: “This plant will be operated by local Chinese employees. Only a few of us have come from India to oversee the operations.”

Most automotive component manufacturers are today facing challenging times with rising raw material costs. Nanjing Tata AutoComp will also have to face the same problem of rising costs of resins and other input costs. Commenting on this, Mr. Bakshi said that this was an industry phenomenon and does not disturb the level playing field. He is confident that given the lean set-up, state-of-the-art manufacturing technology backed by a strong product development centre in India, this plant will have a competitive edge over other facilities in China.