The company plans to invest £8.7 million to build a new facility at the Danyang site which will cover an area of 20,000 m2 when construction completes in September 2015. The existing Danyang facility, established in March 2006, produces powder metallurgy (PM) parts mainly for automotive engines and transmissions, while its powder mixing facilities provides metal powders for the Danyang site and the wider Chinese powder metallurgy market.
GKN Powder Metallurgy’s new facility in Yizheng, produces small precision parts mainly for automotive applications in engines and body and chassis. By the end of 2014 about 80 people will be employed at the site.
Since entering the Chinese market in 2006, GKN Powder Metallurgy has gained market share each year and reports that it is now in the top five suppliers to the Chinese automotive PM market.
Expanding production
“The expansion of our production capability in China is a reflection of our commitment to expanding our global footprint and meeting the needs of our customers,” said Nigel Stein, chief executive of GKN plc.
