Honeywell's 2nd China turbo plant begins output
Honeywell International Inc. said its turbocharger plant in the central China city of Wuhan started production on Tuesday.
Honeywell did not disclose the capacity of the factory, its second turbo plant in China, but the U.S. supplier said the plant will triple the company's turbo capacity in China.
Honeywell needs the plant to meet China's rising demand for turbos, which can help vehicles improve fuel economy. Turbos have a 23 percent penetration rate in China's auto market, according to Honeywell.
The Chinese government requires automakers to cut the average fuel consumption of their vehicles to 6.9 liters per 100 kilometers (34 mpg) by 2015 and to 5 liters per 100 kilometers (47 mpg) by 2020.
Honeywell predicts sales of turbocharged vehicles in China will double from 4 million units in 2011 to 8 million in 2016.
Honeywell needs the plant to meet China's rising demand for turbos, which can help vehicles improve fuel economy. Turbos have a 23 percent penetration rate in China's auto market, according to Honeywell.
The Chinese government requires automakers to cut the average fuel consumption of their vehicles to 6.9 liters per 100 kilometers (34 mpg) by 2015 and to 5 liters per 100 kilometers (47 mpg) by 2020.
Honeywell predicts sales of turbocharged vehicles in China will double from 4 million units in 2011 to 8 million in 2016.
