ThyssenKrupp Automotive in China
Know-how and strength on a local basis

The Chinese market is growing rapidly, and ThyssenKrupp Automotive as a supplier of components, modules and systems for the body, chassis and powertrain areas is meeting that growth head on. Whereas China produced around 2.1 million vehicles in the year 2000, that number more than doubled to 5.2 million in 2004. Forecasts predict a rise to over seven million vehicles by the year 2008. This trend confirms ThyssenKrupp Automotive’s decision to increase its involvement in the dynamic Chinese market.

ThyssenKrupp Automotive’s involvement in China began in the late 1980s with the development and implementation of tooling and assembly line equipment by the company ThyssenKrupp Drauz Nothelfer. What began with minor orders resulted in 1998 in the first large-scale contract to build assembly line equipment for Audi. Further orders from SVW, VW, Audi and FAW followed.

ThyssenKrupp Automotive has been involved in production in China since 1995. Springs, steering components, crankshafts and body and chassis parts are currently produced by five joint venture companies.

ThyssenKrupp Presta, with two joint ventures in Shanghai and Changchun, supplies approximately 1.4 million steering columns a year to customers such as Shanghai Volkswagen, FAW-Volkswagen, Nanjing-Fiat, Changan Ford, Shanghai HuiZhong Automotive, FAW-Jiefang, FAW-Car and Chery Automotive. ThyssenKrupp Automotive owns 60 percent of each venture. The joint venture partner in ThyssenKrupp Presta HuiZhong Shanghai Co., Ltd., set up in November 2000, is Shanghai HuiZhong Automotive. In Changchun, ThyssenKrupp Automotive is a partner of Fawer Automotive Parts in ThyssenKrupp Presta Fawer (Changchun) Co., Ltd., set up in 2003.

Set up in Wuhan in 2004 by ThyssenKrupp Automotive and Chinese partner Wuhan Zhong-Ren Rui-Zhong Auto Parts, ThyssenKrupp Zhong-Ren Chassis Co. Ltd. is a producer of body and chassis parts. ThyssenKrupp Automotive holds 51 percent of the shares. The main customers include Chang’an Ford/Mazda and Dongfeng Peugeot Citroen Automotive. Capacity is to be expanded to two million body and chassis parts by fiscal year 2005/06.

In the province of Liaoning, Liaoyang K.S. Automotive Spring Company Ltd. has been producing springs and stabilizers for car manufacturers such as Volkswagen, Audi, FAW, SGM, Chery Automotive, Dongfeng-Nissan and Brilliance-Jinbei since 1997. The company, in which ThyssenKrupp Automotve holds a 30 percent interest, has a production capacity of 2.4 million coil springs and a million stabilizers a year. The joint venture partners are Allevard-Rejna and FAWER/FAW.

The latest ThyssenKrupp Automotive joint venture began producing forged crankshafts in Huizhou at the end of 2004. ThyssenKrupp Automotive owns 34 percent of Huizhou Sumikin Forging Co., Ltd. Further shares are held by the Japanese companies Sumitomo Metals Industries and Sumitomo Corporation. The company produces approximately 800,000 car crankshafts per year for the main customers Honda and Suzuki.

By strengthening its presence on the Chinese market, ThyssenKrupp Automotive plans to share in the growth of Chinese, Korean, Japanese and European car models. Further joint ventures with Chinese partners are already being planned.