Johnson Controls plans major environmentally friendly battery investment in China

Johnson Controls, Inc. (Milwaukee, WI) is planning to build a $200 million automotive battery plant in the Chinese city of Tianjin. The state-of-the-art facility will supply automakers and the aftermarket in China with high-quality, maintenance-free, lead-acid starter batteries and advanced batteries for Start-Stop vehicles.

"This plant demonstrates our long-term commitment to the rapidly growing automotive industry in China," says Alex Molinaroli, president, Johnson Controls Power Solutions. "We are forecasting 25 million in annual new car sales in China by 2015. This plant is a further indication of the strategic importance of this market for Johnson Controls."

Johnson Controls plans to grow to 30 million in annual battery capacity in China by 2017. The company recently launched production at its Changxing facility and its Chongqing plant is scheduled to launch later this year. The company also has an automotive battery plant in Shanghai that was part of an acquisition in 2005.

"The city of Tianjin offers excellent leadership in industry and economic development that will help us to achieve our long-term investment plan for growth in the China market," says Shu Yang, VP and general manager for Johnson Controls Power Solutions Asia. "With the in-depth and highly collaborative support from local governments, we have built our plants in Changxing and Chongqing, and we look forward to establishing our footprint in the North here in Tianjin."

Tianjin is the largest coastal city in the North and is considered the economic center of the region. Its population is approaching 13 million, with a growth rate of 17.4% and a GDP of $174.6 billion in 2011, pushing the growth rate to 16.5%. Located on the East Coast of Tianjin and center of Circum-Bohai-Sea Region, Tianjin Binhai New Area has a planning area of 2270 square kilometers and a population of 2.48 million. As part of China's strategic development plan, Tianjin Binhai New Area has become another engine for regional economic growth after Shenzhen Special Economic Zone and Pudong New Area.

Construction for the Tianjin plant will begin between 2012 and the first half of 2013 with production expected to start in late 2014. The Tianjin Plant will produce more than 6 million batteries annually at full capacity. —[email protected]