New factory in Tokoname City will replace Nagoya plant and supply increased demand for electrification technologies in Asia
GKN Driveline plans to construct a new manufacturing facility in Tokoname City, Japan. The new site will replace an older plant, reportedly representing “a substantial technological upgrade” of the company’s local capabilities.
The announcement follows a number of contract wins for GKN Driveline’s All-Wheel Drive (AWD) and eDrive systems, with the company forecasting a significant uplift in revenue from the operation over the next four years. Construction of the new facility will break ground in September 2017 and is scheduled to be complete by the middle of 2018.
The new Tokoname City operation will deliver the company’s next-generation AWD systems and Rear Drive Modules (RDMs), which feature technologies such as electronic disconnect capability and torque vectoring.
This also means GKN can support increased vehicle electrification requirements in Asia. The company’s existing facility, based in Nagoya, is already supplying Mitsubishi with significant volumes of latest technology Multimode eTransmission for its Outlander PHEV, one of the world’s most popular plug-in hybrid electric vehicles (PHEVs).
A site nearby Nagoya was crucial in order to remain close to existing OEM customers, it said.
GKN Driveline CEO Phil Swash said: “One third of the world’s vehicles are designed and developed by Japanese OEMs, so it is essential that GKN has world-class capability in the region. This new state-of-the-art facility will allow us to meet increasing demand for advanced All-Wheel Drive and eDrive systems, while retaining all the benefits of an automotive manufacturing site in the Nagoya area.”