Benecke-Kaliko AG is making the largest investment in its history to build an environmentally friendly auto interior trim plant in China, prompted by rapidly increasing demand for in-car air quality improvement in a country plagued by air pollution.
Benecke-Changshun ECO Trim, a joint venture between Benecke-Kaliko and Jiangsu Changshun Group Co. Ltd. broke ground in Changzhou on Jan. 21.
Benecke-Kaliko is a business unit of ContiTech AG, part of German auto supply giant Continental AG.
Scheduled to start production at the end of this year, the new facility will exclusively manufacture Acella Eco — an environmentally friendly, low-emission and allergen-free automotive trim material, Benecke-Kaliko said in a statement.
At full capacity, the new site will be able to make 10 million square meters of the material per year.
The first batch of orders has already been secured.
The company is investing nearly 40 million euros ($45.7 million) in the construction of phase one of the factory, which will feature 24,000 square meters of production space and 250 employees.
The move comes in response to great demand from the Chinese automotive industry for eco-optimized surface solutions that ensure air quality requirements are achieved, the company said.
“Our customers in the Chinese automotive market are turning more and more to sustainable, green products,” said Dirk Leiss, chairman of the executive board. “The new emissions legislation for car interiors has major influence on this movement, but the active effort of society to take care for human health is also a key motivating influence factor.
“We have been developing low-odor and low-emission surface solutions and measuring pollutants in vehicles for decades and in building the new plant, we are now making our expertise available to our business partners locally in China as well,” he added.
Acella Eco surface material is suitable for long-term direct contact with skin and does not contain antimony or any heavy metals, the company said. Its applications include vehicle seats, door trim, and decorative surfaces.
Benecke-Kaliko also operates a joint venture in Zhangjiagang, which completed a major expansion last year.
Benecke-Kaliko is a business unit of ContiTech AG, part of German auto supply giant Continental AG.