SAO PAULO, Brazil, Nov 30, 1999 /PRNewswire via COMTEX/ -- Delphi
Automotive Systems will establish an operation in Brazil to manufacture
compact, high-efficiency automotive air conditioning compressors,
Delphi Chairman, CEO and President J.T. Battenberg III announced today.
The wholly owned facility, Delphi's first compressor plant in South
America, will be located in Jaguariuna, some 100 km north of Sao Paulo.
Battenberg made the announcement in Brazil during the dedication of
Delphi's newest technical centre in Piracicaba.
"The South American air conditioning market holds significant potential,
" Battenberg said. "By establishing this plant in the region and doing
so with such advanced compressor technology, we're sending customers
the message that we're very serious about being a partner in their
success, and also very determined to be a strong leader in this
developing market."
The plant will manufacture Delphi's Compact Variable Compressor (CVC),
a leading-edge design that the company's Harrison Thermal division is
already producing in Europe and Asia for automotive applications. It
will also soon begin manufacturing the CVC in the United States.
The operation will occupy an existing facility in Jaguariuna, covering
approximately 10,000 square meters. It will employ approximately 150
people when fully operational, and is expected to begin CVC production
in the fourth quarter of 2000.
The plant will supply various South American-based OEMs, while also
supporting some of their export programs, noted Volker Barth, president
of Delphi Automotive Systems South America. "We want to sell our
compressors not only to the Mercosur region but also to other countries
as well," Barth said. In addition, the plant will serve the air
conditioning aftermarket, Barth added.
Delphi's current plans call for investing $45 million in the start-up
of this facility, which will have a volume capacity of 500,000 units.
Dennis Grable will serve as plant manager.
Earlier this year, Delphi announced that it would be establishing a
compressor facility in the Mercosur economic region, having not yet
finalized a site. The ensuing selection process was based on a number
of key factors, noted Sandra Y. McCulloch, Delphi Harrison Thermal
Systems director of South American operations. Those included access to
a skilled labor force, local supplier capabilities, and transportation
logistics, among others.
"By announcing our intentions at that time, we let our customers know
of our commitment to providing localized manufacturing support, and
that we were moving aggressively with those plans," McCulloch said.
Delphi Harrison Thermal Systems already has an HVAC assembly and heat
exchanger manufacturing site in Piracicaba. It has been in operation
for nine years.
"This plant will further strengthen our presence in South America and
help us become the leader in air conditioning compressor
manufacturing," Barth said, noting that the CVCs produced in Jaguariuna
will carry the same technological standards of the CVCs produced at
Delphi's joint venture in France.
The CVC represents the next generation of variable displacement piston
compressor technology. Featuring a "swash" plate configuration, the CVC
produces less noise and vibration than contemporary designs, while
delivering high-speed operation and best-in-class output in relation to
mass and volume. With its numerous displacement offerings and a high
degree of design flexibility, Delphi's compact variable compressor is
adaptable to a full range of small, mid-sized and large vehicles, and
it complements its variable displacement compressor portfolio.
The CVC is currently manufactured at Delphi's joint ventures in France
and Japan. A second European venture to produce CVCs was recently
announced, to be located in Hungary. Also, CVC production is expected
to begin in Ohio next year.
This marks Delphi Automotive Systems' 13th wholly owned operation in
South America. It also has three joint ventures and two technical
centres.
Delphi Automotive Systems (NYSE: DPH), with headquarters in Troy,
Mich., USA, is a world leader in automotive component and systems
technology. Delphi's three business sectors -- Dynamics & Propulsion;
Safety, Thermal & Electrical Architecture; and Electronics & Mobile
Communications -- provide comprehensive product solutions to complex
customer needs. Delphi has approximately 201,000 employees and operates
168 wholly owned manufacturing sites, 38 joint ventures, 51 customer
centers and sales offices, and 27 technical centers in 37 countries.
Regional headquarters are located in Paris, Tokyo and Sao Paulo,
Brazil. Delphi can be found on the Internet at
delphiauto.com |
