Delphi to quadruple sourcing volume
By Gong Zhengzheng (China Daily)
Updated: 2004-04-07 08:47

Delphi Corp, the world's leading automotive components supplier, plans to quadruple its sourcing volume in China by 2007 with its fast-growing local businesses, according to a senior company executive.

The US-based company's sourcing value will reach US$1 billion by 2007, up from US$247 million last year, said David Wohleen, vice-president of Delphi.

Wohleen also predicted that Delphi's revenues in China will grow by 30 to 35 per cent every year in the near future.

Last year, the company's revenues in China stood at US$650 million, jumping 50 per cent from a year earlier.

"Delphi  has been an inter-nationally competitive automotive supplier in China, the world's fastest-growing auto market, through 10-year operations," said Wohleen, also head of the company's electrical, electronics and safety sector.

Delphi has invested more than US$450 million in China since 1993.

It has 11 manufacturing plants in China, including eight joint ventures with local partners and three wholly owned affiliates.

"We will continue to invest in China and bring new technologies into the country," he said.

Delphi will invest US$40.5 million to build two new plants in Suzhou, East China's Jiangsu Province, to produce various auto electronic products.

The construction of the two plants will be completed during the third quarter of this year.

Last December, Delphi started to build a research and development centre in Shanghai with a total investment of US$50 million.

Delphi said it will increase its exports from China to the United States and Europe, although it will continue to depend mainly on the Chinese market.

The company's exports from China now account for 20 per cent of its total revenues generated in China.

"Global automakers are speeding up sourcing in China. This is an opportunity for us (to export from China)," Wohleen said.

China will beef up efforts to boost its automobile and component exports.

The government has set a target for the nation's automobile and component exports to reach US$100 billion by 2010.

Exports will account for 40 per cent of total sales of automobiles and components made in China.

Last year, exports grew by 34.3 per cent to US$4.71 billion.

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