BorgWarner Board Approves a $125 Million Turbocharger Expansion for New Business in North America, Europe & Asia
01 May 2008 - 11:00PM
PR Newswire (US)
AUBURN HILLS, Mich., May 1 /PRNewswire-FirstCall/ -- The Board of
Directors of BorgWarner Inc. has approved investments of
approximately $125 million to increase the company's global
passenger car turbocharger capacity by more than three million
units. The increased capacity is expected to meet growing demand
for the company's fuel-efficient turbocharger technology and will
support new business awards in North America, Europe and Asia. The
investments include construction of new facilities in Mexico and
Thailand, and expansion of facilities in Hungary and Poland. The
added capacity will produce turbochargers for both diesel and
gasoline engines. The spending for these projects will occur over
the next few years. "With new business awards, additional capacity
is essential to meet customer demands for our market-leading
turbocharger technology," said Tim Manganello, BorgWarner Chairman
and CEO. "The continued growth of diesel engines around the world
and the move to gasoline direct injected engines in North America
provide us an opportunity to leverage our turbocharger technology
expertise as never before. We will be well positioned to serve our
customers' needs as the world market for turbochargers expands. The
demand for turbochargers is expected to grow over 40% in the next
five years, from 19 million units to 27 million as more engines are
downsized and turbocharged and more sophisticated engines
incorporate multiple turbochargers." North America: North American
turbocharger production for passenger cars is expected to more than
double from 1 million units today to 2.3 million by 2013. Gasoline
and diesel turbocharged engines are a key part of every major
automakers' future plans in North America. A turbocharger facility
to be built on the BorgWarner campus in Ramos, Mexico is expected
to start production in mid-2010 to supply a major North American
gasoline direct-injected engine program. Europe: The third
expansion of the Hungary plant will accommodate production of an
advanced turbocharger system for a new gasoline engine program and
programs for small diesel engines with critical European customers.
The facility in Poland, which just began construction in March, is
already sold to capacity and will move into a second phase
expansion immediately. The expansion will double its floor space to
accommodate a number of additional programs for small diesel
engines. Demand for small diesel turbocharged vehicles continues to
rise sharply in Europe. Diesel turbocharger production is expected
to grow 20% in Europe from about 11.8 million units today to 14.2
million units in 2013. Over the same period, European gasoline
turbocharger production is expected to more than double from about
1.6 million units to 3.8 million units. Asia: Thailand was selected
as a strategic location for expansion of turbocharger production in
Asia to support both local and ASEAN demand. Current turbocharger
demand in Thailand is increasing rapidly with several Japanese and
North American based automakers in the process of expanding
production there. With its more advanced and proven technology,
BorgWarner stands to gain as the market expands. Turbocharger
production in Asia is expected grow 48% by 2013 to 6.7 million
units. Auburn Hills, Michigan-based BorgWarner Inc. (NYSE:BWA) is a
product leader in highly engineered components and systems for
vehicle powertrain applications worldwide. The FORTUNE 500 company
operates manufacturing and technical facilities in 64 locations in
17 countries. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler,
Fiat, BMW, Honda, John Deere, PSA, and MAN. The Internet address
for BorgWarner is: http://www.borgwarner.com/ . Statements
contained in this news release may contain forward-looking
statements as contemplated by the 1995 Private Securities
Litigation Reform Act that are based on management's current
expectations, estimates and projections. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "estimates,"
variations of such words and similar expressions are intended to
identify such forward-looking statements. Forward-looking
statements are subject to risks and uncertainties, many of which
are difficult to predict and generally beyond our control, that
could cause actual results to differ materially from those
expressed, projected or implied in or by the forward-looking
statements. Such risks and uncertainties include: fluctuations in
domestic or foreign vehicle production, the continued use of
outside suppliers, fluctuations in demand for vehicles containing
our products, changes in general economic conditions, and other
risks detailed in our filings with the Securities and Exchange
Commission, including the Risk Factors, identified in our most
recently filed Annual Report on Form 10-K. We do not undertake any
obligation to update any forward-looking statements. DATASOURCE:
BorgWarner Inc. CONTACT: Mary Brevard of BorgWarner Inc.,
+1-248-754-0881 Web site: http://www.borgwarner.com/
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