Johnson Controls to build auto battery factory in China

Jun 07, 2012 01:11 PM EDT | Staff Reporter

In a recent artic posted in The Business Journal, Johnson Controls Inc. announced on Wednesday plans to build a $200 million automotive battery plant in Tianjin, China, pending final approval.

The state-of-the-art facility will supply automakers and the aftermarket in China with maintenance-free lead-acid starter batteries and advanced batteries for start-stop vehicles.

"This plant demonstrates our long-term commitment to the rapidly growing automotive industry in China," said Alex Molinaroli, president of Glendale-based Johnson Controls power solutions business. "We are forecasting 25 million in annual new car sales in China by 2015. This plant is a further indication of the strategic importance of this market for Johnson Controls."

Johnson Controls plans to grow to 30 million in annual battery capacity in China by 2017. The company recently launched production at its Changxing facility and its Chongqing plant is scheduled to launch later this year. The company also has an automotive battery plant in Shanghai that was part of an acquisition in 2005.

"The city of Tianjin offers excellent leadership in industry and economic development that will help us to achieve our long-term investment plan for growth in the China market," said Shu Yang, general manager for Johnson Controls' power solutions business in Asia. "With the in-depth and highly collaborative support from local governments, we have built our plants in Changxing and Chongqing, and we look forward to establishing our footprint in the North here in Tianjin."
Tianjin is the largest coastal city in the north of China and is considered the economic center of the region. Its population is approaching 13 million people.

Construction for the Tianjin plant will begin between 2012 and the first half of 2013 with production expected to start in late 2014. The Tianjin plant will produce more than 6 million batteries annually at full capacity.

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