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.
About Johnson Controls:
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 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 seating components and 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. In 2015, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com or follow us @johnsoncontrols on Twitter.
About Power Solutions:
Johnson Controls Power Solutions is the world's largest manufacturer of automotive batteries, supplying approximately 140 million every year to automakers and aftermarket retailers. The company's full range of lead-acid and Lithium-ion battery technology powers nearly every type of vehicle for our customers- including conventional, Start-Stop, Advanced Start-Stop, Micro Hybrid, hybrid and electric. Johnson Controls' recycling system has helped make automotive batteries the most recycled consumer product in the world. Globally, 15,000 employees develop, manufacture, distribute and recycle batteries at more than 50 locations. For more information, please visit http://www.JohnsonControls.com/PowerSolutions or follow @JCI_BatteryBeat on Twitter.