Issue: Oct 2010


Johnson Controls to Build $118 Million Automotive Battery Plant in Chongqing, China



Company expands presence with another new battery plant in China

by Alan Tran

Johnson Controls, Inc, the world's largest supplier of automotive batteries, today announced it is investing $118 million to build a third automotive battery plant in China, to be located in Chongqing. The plant complements the company's existing plants located in Shanghai and Changxing, and expands the company's geographic presence to the central western part of the country.

"Our recent investments in China are an indication of the importance of this market for Johnson Controls," said Alex Molinaroli, president of Johnson Controls Power Solutions. "In three years we will be growing from a single plant to three plants that will produce more than 18 million automotive batteries annually. These plants support our plan to install capacity for 30 million batteries annually in China by 2015."

The 30,000 square-meter plant will produce automotive lead-acid batteries using world-class Johnson Controls Power Solutions technologies, including its patented PowerFrame® grid technology. The new facility will be located in Fuling, which is in the central part of Chongqing, and has a population of 1.1 million people and strong logistics infrastructure with three major highways, three railways, and two main ports. The plant will have capacity to produce 6 million batteries annually with the start of production slated to begin in 2012 subject to receipt of the necessary regulatory approvals.

"Motorcycles and cars have become Chongqing's leading industry, with 21 automakers located there alone," said Shu Yang, vice president and general manager for Johnson Controls Power Solutions in Asia Pacific. "There is also a rich environment for innovation and research and development. The city is home to 50 universities, 400 technological schools and 100 academies, which adds up to well over 1 million students and more than 400,000 college graduates every year."

Ground breaking for the plant will take place in January 2011, with production slated to ramp up beginning in January 2012.

In addition to the new Chongqing plant, Johnson Controls' previously announced Changxing automotive battery plant will launch production in early 2011 with an expected capacity of 8 million batteries annually. The company will later this year begin locating its fourth plant, with a capacity of 6 million batteries, in the northern region of China.

About Johnson Controls

Johnson Controls is a global diversified technology and industrial leader serving customers in over 150 countries. Our 130,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful.

Johnson Controls Power Solutions is the global leader in lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles. Our 30 plants supply more than one third of the world's lead-acid batteries to major automakers and aftermarket retailers. Through our innovations we are building the advanced battery industry for hybrid and electric vehicles. Our joint venture, Johnson Controls-Saft, is the first company in the world to produce lithium-ion batteries for mass-production hybrid vehicles. Our commitment to sustainability is evidenced by our world-class technology, manufacturing and recycling capabilities.

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