The expansion is aimed at catering to an increased order book as well to increase localised sourcing.
21 Sep 2022 | 12654 Views | By Amit Vijay M
Michigan-based BorgWarner has inaugurated a new plant, under BorgWarner Morse Systems India, in the Thiruvallur district, near Chennai, Tamil Nadu. The assembly of the company’s high-performance engine control and variable camshaft timing (VCT) systems will be centralised in the new facility, which also has space for warehousing and shipping.
The opening of the new manufacturing facility took place today in the presence of the company’s senior leadership and employees. This is BorgWarner Morse Systems India’s second unit and with the new site operating in close proximity to the existing one, it is expected to increase production efficiency and strengthen the company's position in the region, the company said in a press note.
BorgWarner's VCT technology optimises efficiency and contributes to reducing emissions in combustion-powered vehicles – a further step on the company’s path toward cleaner and more sustainable mobility, BorgWarner said.
“The current expansion was necessary as we needed the extra space to meet our increasing customer demand in India as a major local manufacturer,” said Pei Wang, Vice-President and General Manager Asia, BorgWarner Morse Systems. “Having the two plants in the same area enables us to optimise logistics and improve our supply chain. Furthermore, the expansion highlights our role as an important regional employer,” Wang added.
At the inauguration, R Murali, plant manager and director, BorgWarner Morse systems India said, “We are eyeing a 10 to 20 percent growth in VCT sales based on a robust order book in both ICE and hybrids.”
Production target of 3 million VCTs by 2027
With the opening of this plant, BorgWarner says it is ideally positioned to meet the ever-growing business needs of the automotive industry, not only in India but also in the entire Asian market. The expansion of manufacturing operations is aimed at significantly increasing the localised sourcing and manufacturing setup to deliver the competitive edge in the Indian market.
BorgWarner anticipates that operations will take place across a total area of more than 83,600 square feet, enabling further expansion of manufacturing capacities and the creation of additional jobs in the region.
BorgWarner Morse Systems India is eyeing 10x growth in India operations to touch 30 lakh units of production of VCT by 2027 across ICE and hybrid vehicle categories. Their current production is in the region of 300,000 units.
BorgWarner globally recently introduced its business strategy called Charging Forward, which focuses on accelerating the electrification business.