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Johnson Controls to Build New Automotive Battery Plant in China

Automotive batteries supplier Johnson Controls announced today it plans to invest $118 million to build a third automotive battery plant in China. The new plant is set be located in Chongqing, joining the existing facilities located in Shanghai and Changxing.

The Chongqing facility will spread over 30,000 sqm and will produce automotive lead-acid batteries using technologies such as the company’s patented PowerFrame.

The plant will reportedly have the capacity to produce 6 million batteries annually. Ground breaking for the plant will take place in January 2011, with production slated to begin in January 2012.

"Our recent investments in China are an indication of the importance of this market for Johnson Controls," said Alex Molinaroli, president of Johnson Controls Power Solutions. "In three years we will be growing from a single plant to three plants that will produce more than 18 million automotive batteries annually. These plants support our plan to install capacity for 30 million batteries annually in China by 2015."

In addition to the new Chongqing plant, Johnson Controls' previously announced Changxing automotive battery plant will launch production in early 2011 with an expected capacity of 8 million batteries annually. The company will later this year begin locating its fourth plant, with a capacity of 6 million batteries, in the northern region of China.

"Motorcycles and cars have become Chongqing's leading industry, with 21 automakers located there alone,"
said Shu Yang, vice president and general manager for Johnson Controls Power Solutions in Asia Pacific. "There is also a rich environment for innovation and research and development. The city is home to 50 universities, 400 technological schools and 100 academies, which adds up to well over 1 million students and more than 400,000 college graduates every year."
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