JCI to open 6 seat and interiors plants over next 2 years
Johnson Controls Inc. plans to open six plants in China over the next two years to produce seats and interior components, bolstering its status as the country's biggest seat maker.
The company has a 43 percent share of China's automotive seat market.
By 2017, Johnson Controls will have 72 factories producing seats and interior trim in China, said Eric Sorret, JCI's group vice president and general manager for seating and interiors business.
That total will include 52 seat plants, eight interior component factories and 12 plants that produce both seats and interior trim, Sorret said in an interview with Automotive News China last month at the Shanghai auto show.
Last year, the U.S. supplier announced that it would spin off its interiors unit -- which produces door panels, instrument panels and consoles -- into a joint venture with Yanfeng Automotive Trim Systems Co. of Shanghai.
JCI will hold a 30 percent stake in the joint venture, while Yanfeng will own the remaining 70 percent. Approval for the joint venture is expected before July.
With annual global sales of $8.5 billion (52 billion yuan), the new company will be the world's largest supplier of interior components, Sorret said.
Last year, Johnson Controls' seat and interiors businesses in China generated sales of 44 billion yuan, up 26 percent from a year earlier.
While expanding seat and interiors production, JCI also has established several engineering centers in China. Its two main technical centers, which are located in Shanghai and Changchuan, can handle product design, prototyping and validation, said Sorret.
"Now we don't have to go to Europe or North America for product validation," Sorret said. "We can do all the validation work in China, not only for each complete seat, but also for each component."
By 2017, Johnson Controls will have 72 factories producing seats and interior trim in China, said Eric Sorret, JCI's group vice president and general manager for seating and interiors business.
That total will include 52 seat plants, eight interior component factories and 12 plants that produce both seats and interior trim, Sorret said in an interview with Automotive News China last month at the Shanghai auto show.
Last year, the U.S. supplier announced that it would spin off its interiors unit -- which produces door panels, instrument panels and consoles -- into a joint venture with Yanfeng Automotive Trim Systems Co. of Shanghai.
JCI will hold a 30 percent stake in the joint venture, while Yanfeng will own the remaining 70 percent. Approval for the joint venture is expected before July.
With annual global sales of $8.5 billion (52 billion yuan), the new company will be the world's largest supplier of interior components, Sorret said.
Last year, Johnson Controls' seat and interiors businesses in China generated sales of 44 billion yuan, up 26 percent from a year earlier.
While expanding seat and interiors production, JCI also has established several engineering centers in China. Its two main technical centers, which are located in Shanghai and Changchuan, can handle product design, prototyping and validation, said Sorret.
"Now we don't have to go to Europe or North America for product validation," Sorret said. "We can do all the validation work in China, not only for each complete seat, but also for each component."
