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Varroc setting up third plant in China, planning expansion in Russia or Brazil

By: Satnam Singh

March 25, 2013

AURANGABAD, INDIA — India's Varroc Group is setting up a third automotive lighting plant in China.

"The third plant will likely to start operation in beginning of second quarter," said Vineet Sahni, president of the company's automotive lighting unit, in a telephone interview. Varroc and its Chinese partner, TYC Brother Industrial Co. Ltd., are investing $30 million in the Chongqing, China, plant over the next three years.

Varroc's existing plants in China are in Changzhou, Jiangsu province, and have annual sales of about $130 million.

Sahni said the new plant will start off by serving a Ford Motor Co. assembly plant. The factory will be Varroc's largest in China, and he expects it to reach $100 million in sales within five years.

"Initially, the Chongqing plant will supply Ford, but later on [it will serve] other car OEMs," Sahni said.

The China plant will be part of Varroc Lighting System which was recently formed after Varroc Group's acquisition of Visteon Corp.'s automotive lighting business, which has operations in Europe, North America and Asia.

In total, about 1,450 manufacturing, engineering and administrative employees are part of China facilities.

Sahni added that Varroc is wrapping up a study on establishing a manufacturing plant in Russia or Brazil. The company will finalize plans in the second quarter.

Meanwhile, Varroc has 23 plants in India and is in the midst of setting up another in southern India. The Aurangabad-based company offers design, development and manufacturing of plastic and metal automotive products.