Shanghai - German interior components manufacturer Grammer AG has announced plans for a third Chinese production facility in Shanghai after inaugurating plants in Tianjin and Changchun in May.
General manager of the two facilities Stephen Viburg said Grammer invested €12 million in the two facilities and recently signed a global contract to provide General Motors Corp with interior components, primarily headrests and armrests.
''GM demands a local presence,'' Mr Viburg said.
The Changchun plant, which includes plastics welding, foaming and assembly capabilities, also supplies Volkswagen AG's joint venture with Changchun-based First Automotive Works, producing armrests and headrests for Audi A4 and A6 models and Volkswagen Bora, Caddy and Golf models.
The Tianjin facility was launched by adding the production of seats for industrial vehicles such as trains, buses, trucks and equipment to an existing facility, specializing in automotive parts for passenger vehicles.
Previously, the seating unit was a joint venture in Xiamen.
Mr Viburg said the company was pleased that all its Chinese businesses were now wholly-owned.
Following changes to ownership regulations in the automotive industry since 2001, many Tier 1 and Tier 2 suppliers have dissolved joint ventures in favour of wholly owned operations.
Mr Viburg said about 15 per cent of Grammer's Chinese production was exported to automakers in Japan and South Korea and the company expected sales of €25 million for this year.