IAC dedicates Beijing production facility

Anticipating a doubling of sales in the region over the next two years, Tier One automotive supplier International Automotive Components (IAC) dedicated a new manufacturing facility in Beijing on May 19. The 4300m² plant is a 50/50 joint venture between IAC Asia and Shanghai Car Carpet Plant (SCCP) that will produce vehicle interior components and systems, including carpet and trunk trim for OEM customers Beijing Benz-Daimler Automotive Co. Ltd. and Shanghai General Motors. In terms of manufacturing processes, the site will offer compression molding, foaming, and water-jet cutting, with an anticipated headcount of 80.

This announcement is the latest in a series of moves over the past two years for IAC in Asia, where it currently generates about 7% of its total sales, according to company spokesman David Ladd. Ladd told PlasticsToday that sales in Asia are forecast to double from approximately $200 million today to $400 million by 2012.

In April 2008, IAC and Mitsuboshi Kaseihin Co. Ltd. (MBK) opened a manufacturing plant in Wuhan, China, to supply interior components to Dongfeng Nissan and Dongfeng Honda in China. In Chongqing, IAC began production in October of 2008 of vehicle interior components and systems, including Volvo instrument panels and door panel assemblies for Changan Ford Mazda Automobile. In January 2009, IAC established its Asia headquarters and engineering center in Shanghai, with that facility also housing IAC Asia's purchasing, human resources, finance, and sales and marketing for China.

All told, IAC has 14 facilities in Asia, with OEM customers including Toyota, Honda, Nissan, Daimler, Mahindra, Volkswagen, Huatai, Shanghai Automotive Industry Corp., and Shanghai General Motors. IAC says Asia's automotive market represents its fastest growth market worldwide. In 2007, IAC Asia had one customer buying two interior products, while today, IAC Asia reports producing interior/exterior components and systems for more than 10 OEM customers, across numerous product lines, including flooring/acoustics, doors, instrument panels, hard trim, and overhead systems.

Formed in October 2005 by WL Ross & Co. LLC and Franklin Mutual Advisers following the acquisition of Collins & Aikman's European assets, IAC has more than 24,000 employees located at approximately 90 locations around the world. Estimated 2009 revenues were $3.2 billion. —[email protected]