BorgWarner Opens New Plant in India - Analyst Blog
13 February 2013 - 10:20PM
Zacks
BorgWarner Inc. (BWA) announced the opening of
a new facility in Manesar, near New Delhi, India. The
86,000-square-foot facility will primarily manufacture exhaust gas
recirculation (EGR) coolers, tubes, valves and modules.
The Manesar plant will replace the former facility in Faridabad and
will expand the production capacity of the company. It will also
support domestic and international automakers by providing sales,
design, and test validation capabilities. The customers includes
Maruti Suzuki, Mahindra & Mahindra, Renault, General
Motors Company (GM), Tata Motors Limited
(TTM), Fiat S.p.A. (FIATY), Ashok Leyland, Volvo
Eicher and others.
The EGR technologies help the auto companies to reduce nitrogen
oxide (NOx) emission and meet strict emission regulations. The EGR
systems are designed in such a manner that it can be used in any
application from passenger cars to commercial trucks.
Management believes that the new facility will strengthen the
market position of the company in EGR coolers business and will
also support the rising demand for EGR products. With this, the
company expects that Indian EGR business will improve by 35% over
the next five years.
Moreover, the new BorgWarner facility in India is an eco-friendly
facility. It makes maximum utilization of natural light and
features LED lighting, which preserve energy and collects rainwater
for landscaping and sanitation.
BorgWarner is a leading manufacturer of powertrain products for the
world's major automakers. The company operates in 57 locations in
19 countries, providing products that are capable of improving
vehicle performance and stability along with fuel efficiency and
emission levels. It retains a Zacks Rank #3 (Hold).
BorgWarner posted a 3.5% increase in profits to $1.19 per share
(excluding non-recurring items) in the third quarter of the year
from $1.15 in the same quarter of 2011. The profit was in line with
the Zacks Consensus Estimate.
Revenues dipped 5% to $1.7 billion due to a 6% fall in light
vehicle production in Europe, which comprises over half of the
company’s ales. However, excluding the impact of foreign currencies
and dispositions in 2011, net sales went up 2% in the quarter.
BORG WARNER INC (BWA): Free Stock Analysis Report
FIAT SPA (FIATY): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
TATA MOTORS-ADR (TTM): Free Stock Analysis Report
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