Indian owned automotive supplier Samvardhana Motherson Peguform (SMP) is constructing a second vehicle components plant in Bavaria, Germany, which is set to start up in November.
The greenfield facility, located on a 39,000 square meter production site at Schierling near Regensburg, will turn out painted vehicle bumpers and other components for German car manufacturers. The plant is due to create 500 new jobs by 2017, according to SMP.
Multiple high volume orders the firm has received from German car manufacturers has forced SMP to expand its bumper module capacity in the country. It already operates another German plant at Neustadt an der Donau.
Following a ground breaking ceremony at the site in September 2013, the international automotive parts producer is installing plant equipment and machinery through the first three months of 2014.
At the heart of the facility is a large scale robotic paint shop capable of handling up to 1.4 million vehicle parts annually, including bumpers.
Large bumper blanks will be produced locally at plastic injection molding plants shortly before they are painted, and assembly will take place at the SMP site, helping to keep warehousing and transport costs to a minimum, it explained.
The plant's high level of vertical integration, modeled on SMP's Neustadt unit, will enable it to combine quality with flexibility, efficiency and cost effectiveness. At Neustadt, SMP produces not only bumper modules, but also rocker cover panels, instrument panels and interior door panels for German customers.
SMP was formed in 2011 when the Noida, India-based Samvardhana Motherson acquired a majority share in German automotive plastic parts molder Peguform with 16 plants in seven countries.