MAHLE to further expand in China
During the last few years the MAHLE Group already established two piston production plants in China – MAHLE (Nanjing) Piston Co., Ltd. and MAHLE Engine Components (Yingkou) Co., Ltd. Now another important step to enhance the market position in Asia has been taken by acquiring Chongqing Changjiang Izumi Piston Industries Co., Ltd. (CCI), which will bear the name MAHLE Engine Components (Chongqing) Co., Ltd. in the future. This company is located in the metropolitan area Chongqing, the Western center of the Chinese automotive industry.
The chairman of the MAHLE Group's management board Prof. Dr. Heinz K. Junker considers this acquisition strategically highly significant. "Now we have three piston production plants available with a total output exceeding 10 million pistons p.a. Within a very short time, we have become the second largest piston supplier in the Chinese market. Furthermore, we are now able to offer pistons for the whole engine range, from small engines to heavy truck engines. Currently, China is the only real growth market for the automotive industry and consequently it is only logical that we follow our customers to this growth region. We are also intensely considering further projects in China for our other product groups."
Contrary to our competitors, which are usually represented in China by joint venture activities, MAHLE has pursued the strategy to establish wholly-owned subsidiaries. Therefore a know-how drain of important product and process technologies is prevented.
The MAHLE Group is one of the largest automotive suppliers for engine components such as pistons, valves, camshafts, and filter systems throughout the world. As far as the sector pistons and engine components is concerned, MAHLE is the world market leader with a global market share of more than 30 per cent. Headquartered in Stuttgart, Germany, the MAHLE Group employs around 30,000 people in a total of 60 locations in more than 20 countries. For the fiscal year 2003, total sales exceeding 3.2 billion EUR are expected.
Stuttgart, November 7, 2003
Press Release (ZIP) [ZIP; 442 KB]