International Automotive Components Group will likely build new plants in Beijing and Fuzhou over the next two years, says company CEO Jim Kamisckas.

 

"The market downturn has had no effect on our China plans. We're going to be where our customers are, and we still see this country as a tremendous opportunity," he said.

 

Kamisckas spoke on the eve of the opening of a new IAC plant in Chongqing on February 17. IAC's new investment will employ some 50 staff and has been built to supply door and instrument panels to the local Chang'an Ford factory.

 

IAC makes carpets and injection-molded interior components. Its first Chinese plant -- a joint venture in Shanghai -- was opened in 1997 to supply Shanghai GM. The Buick LaCrosse, Buick Regal and new Chevrolet Cruze feature IAC carpets and door and instrument panels.

 

Over the past two years IAC's customer base has expanded to included BMW, Shanghai Volkswagen, Audi, Shanghai Automotive Industry Corp. and Zhejiang Geely Automobile Group..

 

Last year IAC opened a plant in Wuhan, Hubei, to supply instrument and door panels to Nissan models such as the sub-compact Tiida sedan.

 

The Chongqing plant will start by supplying plastic paneling for the new Volvo S80 sedan, slated for launch in China this year. Kamisckas says he is now negotiating to supply Suzuki -- which also makes cars in Chongqing -- and other models made by Ford.

 

IAC's products are bulky and do not ship well. This is why its ultimate China goal is to have plants in all seven centers of car making: Shanghai, Beijing, Changchun, Fuzhou, Chongqing, Guangzhou and Wuhan.

 

The next two plants will likely be constructed to be close to Daimler AG, says Kamisckas. The German carmaker has joint ventures making sedans in Beijing, and light commercial vehicles in Fuzhou, which IAC already supplies from its plant in Shanghai.