Spanish automotive components maker Ficosa International SA has launched its third production plant in China in the north eastern city of Shenyang.
The 10,000-square-meter facility, located in the Shenyang BMW Automobile Park, is set to produce principally vehicle rear view mirrors, as well as parking brakes and automatic gearshift systems. It will supply its major client BMW along with several leading Chinese car manufacturers such as Brilliance Auto Group, Great Wall Motors and the BAIC Group.
Over the next four years, the Catalan group's latest Shenyang unit, which will be eventually extended to an area of 17,000 square meters, is to employ up to 400 workers. Ficosa was chosen as BMW's sole vehicle mirror supplier in China.
Meanwhile, the top-tier components supplier revealed it increased annual sales to 949 million euros ($1.06 billion) in 2014 and raised its gross operating profit for the year by 27 percent to 79 million euros ($88.8 million). In 2015, it has forecast its sales will hit 1 billion euros ($1.06 billion) thanks to its globalization.
Ficosa already operates other Chinese production facilities in Taicang near Shanghai, where it also runs an engineering centre, and in the south western city of Chongqing.
Now, Ficosa is planning to establish a further strategic plant in southern China by 2017 in order to stay close to and serve BMW more efficiently, according to Ficosa Asia chief executive José Luis del Rey.
“The Shenyang plant not only reinforces Ficosa's business in China, but also reaffirms the company commitment to local and international clients,” he said in a statement announcing the new expansion plan.
Ficosa Group CEO Javier Pujol pointed out that since its formation Ficosa China has seen sales growth of 20 percent, a rate it expects to continue in the next few years.
“The new factory in Shenyang is a decisive step in the company's expansion plan in China, which is a key market in the growth strategy of our multinational,” he added.
The group, which just announced it intends to build a $50 million plant in Cookeville, Tenn., next year, already employs 8,700 at its operations in 18 countries, including 1,000 in China.
