DETTINGEN, GERMANY (July 29, 12:15 p.m. ET) — German auto parts maker ElringKlinger AG has opened a new factory in the northern Chinese city of Changchun, where it will supply plastic housing modules and metal-elastomer gaskets.
The 130,000-square-foot facility, Changchun ElringKlinger Ltd., doubles the company's production space in Changchun, in Jilin province, and is in response to increased orders from local customers, the Dettingen-based company said.
Changchun is one of China's automotive centers, and is home to FAW Volkswagen Automotive Company Ltd., a joint venture between China's First Auto Works, Volkswagen, Audi, with capacity for up to 600,000 cars a year.
ElringKlinger said the facility will also make cylinder head and specialty gaskets. It said it has about 300 employees there.
In 2009, ElringKlinger increased its stake in the facility to 88 percent, taking an additional 10 percent ownership position from the State Machinery, Electronics, Light and Textile Industry Investment Corporation, a Changchun-based government investment unit.
The company's engineering plastics subsidiary ElringKlinger Kunststofftechnik GmbH subsidiary makes polytetrafluoroethylene gaskets and components.
Changchun has attracted investment from other German plastics firms lately, with automotive parts supplier Huf Group opening an injection molding facility in Changchun in July.