Adient plc (NYSE: ADNT), the world’s leading global automotive seating supplier, today announced plans to open a new 90,000 square meter (970,000 square feet) seating mechanisms plant in Changshu on land of 250,000 square meters (2.7 million square feet), through one of its China joint ventures — Adient Yanfeng Seating Mechanism Co., Ltd. (“AYM”).
AYM will transfer current employees from Shanghai and hire local workers to staff the Changshu plant with approximately 2,000 team members. The plant will have special engineering, testing, prototyping and manufacturing capabilities for seating mechanisms, such as tracks, adjusters, latches and related parts. The plant will supply major automakers in China and abroad, including Volkswagen, GM, Ford, BMW, Daimler, SAIC, Mazda, Honda, Great Wall and Chang’an.
“Adient is dedicated to reinforcing vertical integration in core seating mechanisms technologies and providing our customers with state-of-the-art products manufactured locally in China,” said Darlene Knight, vice president of Adient China. “With the opening of the new plant in Changshu, Adient plans to further expand our footprint and capacities in China.”
AYM plans to start moving production lines and hiring employees later this year with an anticipation of having the plant operational in Q4 2018. AYM will put in additional capabilities and processes as well during the remainder of the year including stamping, electrophoretic painting, welding, fine-blanking, heat treatment and assembly. Terms of the plant construction and investment have not been released by AYM.
“This strategic move and expansion will enable us to generate sustainable growth in seating mechanisms businesses and to strengthen our market leadership in China,” said Knight.
As the industry-leading seating mechanisms supplier in China, AYM has full-service, world-class capabilities from product design and development, engineering, prototyping, testing and manufacturing. [Note to Draft: We were unable to locate prior disclosure of revenue for this particular China JV. Consider whether this information would be material and if this press release would be the appropriate place to disclose it for the first time.]
Formed in December 2013, AYM is the 50:50 joint venture between Adient and Yanfeng Automotive Trim Systems Co., Ltd. AYM currently operates its seating mechanisms businesses in a 71,000 square meter (764,237 square feet) campus headquartered in Kangqiao Industry Zone, Shanghai.
