Expanded Manufacturing Footprint Critical for Competing in China as Turbo Sales Expected to Increase 100% by 2016
SHANGHAI, Jan. 17, 2012 /PRNewswire-Asia/ -- Honeywell (NYSE: HON) Turbo Technologies announced today that it will invest in a new turbocharger manufacturing facility in Wuhan, China and the new plant is expected to achieve production readiness by the end of 2012.
The new Wuhan facility will address the rapid increase in turbo adoption in China as well as supplement Honeywell's global manufacturing footprint around the world. Honeywell has won a number of key new platforms in China in the last two years with both multinational and domestic automakers and expects sales of turbocharged vehicles in China to double from 4 million in 2011 to 8 million in 2016, as turbo penetration increases across all vehicle segments. This growth in China is consistent with Honeywell's expectations for the global turbocharger market as automakers embrace turbocharging technology to meet more stringent fuel economy and emissions regulations around the world.
"Honeywell has a long term vision to support China's rapidly growing automotive industry, and the new plant underscores our commitment to China and the region," said David Paja, Honeywell Turbo Technologies vice president and general manager, China and India. "Turbochargers provide the flexibility to reduce engine size in order to increase fuel efficiency – by as much as 40 percent -- and reduce emissions without sacrificing performance. This new facility will further enhance our ability to bring the best turbo technologies to market as quickly as possible in China and improve our overall global capacity."
Honeywell Turbo Technologies is the leading automotive turbocharger developer in the world, and is a business unit of Honeywell Transportation Systems. As a leading automotive supplier, Honeywell Transportation Systems enhances vehicle performance, efficiency and appearance through state-of-the-art technologies.
Honeywell's full technology portfolio includes applications ranging from micro-turbos with volume displacements of less than 1.0L to extra-large turbos on commercial vehicle applications in excess of 100L. These applications apply to gasoline, diesel and hybrid engines and are available in regions all around the world.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and performance materials. Honeywell has a long history in China that goes back to 1935 when it established the first franchise in Shanghai. Today, all of Honeywell's four Strategic Business Groups are represented in China, and all of them have relocated their Asia Pacific headquarters to China. Over the years, Honeywell has set up subsidiaries and joint ventures in over 20 cities across the country. Honeywell employs over 11,000 people in China. For more news and information on Honeywell, please visit www.honeywell.com.cn.
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.
