LUDWIGSBURG, GERMANY (June 8, 12:25 p.m. ET) — German auto supplier Mann + Hummel GmbH has opened its fourth plant in China, expanding into the southern region of the country to take advantage of business opportunities there.
The facility in Liuzhou opened May 31 and has injection molding for air intake manifolds, engine cam covers and air cleaners. It currently is supplying SGM-Wuling Automobile, a joint venture of China's SAIC and Detroit-based General Motors Co. The Liuzhou-based SGM mostly produces trucks and minivans under the Wuling and Baojun name plates, but intends to expand into passenger vehicles, Mann + Hummel noted in a June 1 news release.
Mann + Hummel, based in Ludwigsburg, Germany, has three other plants in northern China — in Shanghai, Jinan and Changchun — and previously supplied SGM-Wuling from Shanghai.
The Liuzhou operation will give the company a better geographic foothold to pursue additional business, especially as the auto business in China expands out of traditional manufacturing locations. M+H has set a goal of increasing its sales in Asia. It now generates 17 percent of its 2.5 billion euros ($3.1 billion) in total annual sales in Asia, but wants to increase that to 25 percent, the company said.