Turbocharger giant to set up new Thai plant

The investments include construction of new facilities in Mexico and Thailand, and expansion of facilities in Hungary and Poland.

The increased capacity is expected to meet growing demand for the company's fuel-efficient turbocharger technology and will support new contracts in North America, Europe and Asia.

The added capacity will produce turbochargers for both diesel and gasoline engines. Investment in these projects will occur over the next few years.

"With new business contracts, additional capacity is essential to meet customer demands for our turbocharger technology," said Tim Manganello, BorgWarner chairman and CEO. "The continued growth of diesel engines around the world and the move to gasoline direct-injected engines in North America provide us an opportunity to leverage our turbocharger technology expertise as never before. We will be well-positioned to serve our customers' needs as the world market for turbochargers expands."

He said the demand for turbochargers is expected to grow over 40 per cent in the next five years, from 19 million units to 27 million, as more engines are downsized and turbocharged and more sophisticated engines incorporate multiple turbochargers.

Thailand was selected as a strategic location for expansion of turbocharger production in Asia to support both local and Asean demand. Current turbocharger demand in Thailand is increasing rapidly with several Japanese and North American-based auto-makers in the process of expanding production there. As the market expands, BorgWarner hopes to cash in on its advanced and proven technology.