Johnson Controls to build $200m battery factory in China
American EV industry supplier, Johnson Controls, announced yesterday that it will spend $200m to build a new battery factory in northeastern China. The new factory, in Shenyang province, will be able to produce 6 million batteries a year. Construction of the plant is to start in 2016, with battery production to ramp up in 2018. This is interesting as it comes on the back of last week's reports that the company is also significantly expanding production of batteries at its factory in Ohio.
Further expanding manufacturing footprint in key emerging market Johnson Controls plans to build a new automotive battery manufacturing facility in the city of Shenyang in northeastern China as it continues to invest in the world’s largest new vehicle market. Johnson Controls has signed an investment agreement for a $200 million state-of-the-art plant that is located … Continued

Further expanding manufacturing footprint in key emerging market

Johnson Controls plans to build a new automotive battery manufacturing facility in the city of Shenyang in northeastern China as it continues to invest in the world’s largest new vehicle market.

Johnson Controls has signed an investment agreement for a $200 million state-of-the-art plant that is located in the Tiexi District of Shenyang, the capital city of Liaoning Province. It will have capacity to produce 6 million automotive batteries a year with the industry’s leading sustainability and environmental standards.

“We have a long-term commitment to China, and the new plant will play a strategic role in our plans to meet the increasing expectations of quality products and services from customers and consumers in the country, which is one of our most important markets in the world,” said Joe Walicki, president of Johnson Controls Power Solutions.

Johnson Controls and leaders from the local Shenyang government came together to sign the agreement.

“We welcome the decision of Johnson Controls to establish its new plant in Shenyang, and we believe the company can bring its world-class manufacturing and sustainability experiences and its advanced technologies to the city for local economic development,” said Pan Liguo, mayor of Shenyang City.

Construction of the new plant is expected to begin early next year with production starting in 2018. Batteries for Start-Stop vehicles, which can help automakers meet increasingly strict fuel economy and emission regulations, will be a primary focus of the new facility.

“We want to thank the local government for its support, and will work closely with our external stakeholders including local customers, consumers and communities to build a sustainable business,” said Kenneth Yeng, vice president and general manager, Johnson Controls Power Solutions China.

Located in the core area of the Circum-Bohai-Sea Region, Shenyang has been an important industrial base for China since the 1930s. It has developed a solid and diversified industrial foundation with a convenient transportation network and a trained workforce.

Johnson Controls entered the Chinese automotive battery supply market in 2005 and has set up two battery manufacturing plants in Chongqing in western China and in Zhejiang Province in eastern China. It also has a research and development center for automotive batteries in Shanghai.