BorgWarner building new plant in Portugal

September 19, 2013: BorgWarner, which develops highly engineered components and systems for powertrain applications, is building a new manufacturing facility in the industrial zone of Lanheses, Viana do Castelo, Portugal, about 50km from its current rented site at Valença. Construction started in August 2013 and is expected to be completed in 2014.

BorgWarner’s new larger state-of-the-art building comprises 160,000 square feet of manufacturing space, with room for future expansion. The company says the expanded production capacity will allow it to efficiently serve customers with several environmental friendly technologies such as exhaust gas recirculation (EGR) coolers and EGR tubes as well as glow plug control modules, all key technologies for modern engines aimed at reducing emissions. BorgWarner expects the global EGR systems market to grow from 21.2 million units in 2013 to 33.3 million units by 2018.

“Our investments in Portugal will enable BorgWarner to strengthen its market-leading position in EGR technologies in Europe and meet growing demand with several EGR products for both passenger cars and commercial diesel vehicles,” said Brady Ericson, president and general manager, BorgWarner BERU Systems and BorgWarner Emissions Systems. “The need for advanced diesel cold-start technologies is a further driver of our business, especially in Europe, where Euro 6 emissions regulations take effect in 2014.”

The construction of its new plant in Portugal is part of BorgWarner’s strategy to expand production of its diesel cold-start technologies while meeting growing demand for the EGR technologies currently produced at the Valença plant. The company plans to gradually transfer current production to Viana do Castelo with completion by early 2015.

Michigan-based BorgWarner Inc operates manufacturing and technical facilities in 57 locations in 19 countries and develops products to improve fuel economy, reduce emissions and enhance performance. Its clientele includes VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN.