GKN China
GKN in China
Investor Visit SDS, 30th June, 2010
GKN China
GKN: leadership in four specialist, global sectors
Automotive Driveline
Powder Metallurgy
Land Systems
Aerospace
GKN China
GKN in China Today
SDS
ChangChun
from 2011
Emitec
Beijing
Office
VW
FAW
ChangChun
BMW
Huyndai
Brilliance Toyota
Mazda
Hoeganaes
Danyang
Danyang
BJ Auto
Beijing
GKN Z
Hoeganaes
Chrysler
Mengzhou
Sinter
Mercedes
Nissan
GDC
ChangAn
Ford/Suzuki
ChongQing
DongFeng
WuHan
Honda
WOFE
JV
10 plants, 3800 employees
2009 Sales RMB3bil / $450mil
Kia
Shanghai
Office
LZGM
SVW
Chery
Shanghai
SAIC
GKN CHINA
HOLDING
Shanghai
Geely
Citroen/Peugeot
SDS
SGM
Shanghai
3 Plants
SDS
Wuhan
Toyota
GZ Auto
GuangZhou
Wheels
Liuzhou
Honda
TSH
Shanghai
Off Highway
Shanghai
Office
GKN China
GKN China Automotive
GKN China
China Passenger Vehicle Sales 2010
China
PVlargest
2009/2010automotive
Monthly Sales market
Comparative
China now
the
in Table
the world!
Vehicle (10K)
140
120
100
80
60
40
20
0
Jan
Feb
Mar
Sedan
Apr
May
Mini Bus
June
July
SUV
Aug
MPV
Sep
Oct
Nov
Dec
2009 Total
Market expected to slow down in H2, 10-15% annual growth forecasted in 2010
Data Source: National Passenger Vehicle Information Exchange Association
Association
GKN China
Top 10 Best-Selling Models - May 2010
China Top 10 Best Seller PV Brand May 2010
Vehicle
100000
Sales
Production
86,42786,427
80000
60000
40000
34,491 34,491
27,172
23,995
20000
19,870 19,807 19,83920,512
18,158
19,676
17,236 17,389
15,54415,827 14,524
15,402
13,409 14,023
0
SGMW
CHANGAN
Wuling Sunshine Star
BYD
F3
SVW
Lavida
B-HYUNDAI
Yuedong
SGM
Excelle
FAW VW
Jetta
FAW VW
Bora
SGM
Cruze
Small cars and domestic brands gaining market share!
Data Source: National Passenger Vehicle Information Exchange Association
Association
FAW
Xiali
GKN China
Shanghai GKN Drive Shaft (SDS)
Established
1988
Location
Shanghai
Zhou Pu plant, Kang Qiao plant,
Shen Jiang plant
Shareholders
GKN 50% SAIC 35%,
BOCOM 5%, SDIC 10%
Products
Constant Velocity Joints,
IC Shafts, Propshafts, Forgings
Main Customers
SVW, FAW, SGM, Citroen, Honda,
Nissan, Ford, Fiat, Toyota, Kia,
BMW, MB, Chinese OEM’s
GKN China
GKN Chongqing Driveshaft (GDC)
Established
2006
Location
Chong Qing
Shareholders
SDS 51%, CSG 40%, GKN 9%
Products
Constant Velocity Joints
Main Customers
Chang An, CA Ford Mazda,
CA Suzuki, BYD, JMC,
Wuling, FAW-Hongta,
GKN China
SDS Wuhan Plant
Established
2009
Location
Wuhan
Shareholders
SDS 100%
Products
Constant Velocity Joints
Main Customers
Dongfeng, Nissan, PSA, Honda
GKN China
SDS Changchun Plant
Established
SOP May 2011
Location
Changchun
Shareholders
SDS 100%
Products
Constant Velocity Joints
Main Customers
FAW, Toyota, Brilliance
Ground-breaking May 28, 2010
10
GKN China
GKN Driveline Torque Shanghai (TSH)
Established
2006
Location
Shanghai Kang Qiao
Shareholders
GKN 100%
Products
Differentials, PTU’s, FDU’s,
Torque management devices,
eDrive products
Main Customers
GM, SGM, Nissan, JAC, Chery,
SsangYong
Differentials for
Transmissions and
Axles
Limited Slip and
Locking Differentials
AWD/4WD
Couplings
Power Transfer
Units
Final Drive Units
GKN China
GKN Driveline China Growth Plan
SDS Changchun
Plant (2011)
Market expected to grow at 8-10% per annum
Doubling CV shaft capacity to 6mio car-sets
Hafei
Expanding differential capacity to 1.3mio units
FAW
Mazda
Expanding PTU capacity to 50k units
Hyundai
BJ Auto
Chrysler
SDS Wuhan
Plant
Ford
Suzuki
ChangChun
Toyota
BMW
Brilliance
Beijing
Nissan
Mercedes
LZ-GM
JAC
DF Honda
SDS Shanghai
Technical Centre
SVW
Shanghai
SAIC
Wuhan
Chery
ChangAn
Citroen/
Peugeot
Chongqing
GDC Chongqing
Plant
FAW
GZ Toyota
Guangzhou
Renault
Nissan
BYD
GZ Honda
SGM
Geely
SDS Shanghai
Plants
TSH Shanghai
Plant
GKN China
SDS Shanghai Technical Centre
GKN Driveline’s Technical Centre in
Shanghai possesses best-in-class
design and testing capabilities
enabling the performance of full
Driveline Systems to be validated
under the most demanding inservice conditions.
•State of the art design and test capabilities
•Application centre for driveline products
•Development centre for domestic products
•Expanding to full driveline system capability
13
GKN China
New Technology Plan for China
CVJ ; Full range of products,
introducing latest technology
Propshafts; Localizing high speed
CVJ technology, tube and welding
Geared products; Launching
first PTU in July 2010
IC shafts; Localizing MTS and
laser welding processes
eDrive; Establishing local
competence for HEV and EV
14
GKN China
GKN Driveline China Growth - Summary
Manufacture full CVJ product portfolio, expand footprint
Develop low cost shaft range for domestic customers
Grow in premium propshaft segment with rapidly growing AWD
market and localization of imported products
Establish leading position with Power Take off Units and Torque
Management products in rapidly growing AWD segment
Establish leading position in eAWD units for hybrid vehicles and
EV transmissions
GKN China
GKN Zhongyuan Cylinder-liner (GKNZ)
Established
2005
Location
Mengzhou City, Henan Province
Shareholders
GKN 59%, ZYNP 41%
Products
Heavy Duty Diesel Engine
Cylinder Liners
Main Customers
Cummins, Volvo, Scania, CAT, Wuxi
GKN China
GKN China - Powder Metallurgy
GKN China
China Powder Metallurgy Market Growth
China - PM Market Growth Forecast
Tons, thousands
250
Non-premium quality market
Premium quality market
200
131
128
120
150
111
98
83
100
50
74
83
2010
2011
93
104
113
2013
2014
124
0
2012
2015
18
GKN China
GKN Sinter Metals China - Danyang
Established
1995
Location
Danyang, Jiangsu
Shareholders
GKN 100 %
Products
PM parts for automotive
engines and transmissions
Main Customers
INA, GFT, SGM, Chery, Jatco
VVT components
Synchronizer hubs
Carriers
GKN China
GKN Sinter Metals China
Targeting premium automotive power-train applications
Engine:
Transmission:
GKN China
GKN PM China Growth - Summary
Sinter Metals China focusing on power-train applications
Danyang capacity filling up with additional volume and new
programs
Investing in plant expansion and additional equipment for
further growth
Hoeganaes setting up service centre and powder mixing
facility in Danyang to capture China PM growth
Focus on premium powder market, expected to start
commercial shipments from DY facility by Q3 2010
GKN China
GKN China - Land Systems
GKN China
China Construction Equipment Industry
China: Development of Sales, 2000-2014* (Units )
320,000
270,000
Annual Average 2010-2014 : 283,409
Annual Average 2005-2009 : 208,908
220,000
170,000
120,000
70,000
20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012* 2013* 2014*
*Forecast
Source: OffHighway Research
GKN China
GKN Wheels Liuzhou Co.,Ltd
Established:
2006
Acquisition from
Liugong Group
Location:
Liuzhou, Guangxi
Shareholders:
GKN 100%
Products:
Wheels for construction machinery,
agricultural machinery, harbour
machinery, fork lift trucks, trucks,
cars, other special machinery
Main Customers
Liugong, Liuqi, Liute, SGMW, Noell,
Zhenhua
GKN China
Wheels Liuzhou – A Successful Transformation
25
GKN China
Land Systems China - Wheels
Good position established to further exploit
Construction and Large Mining Wheels from Liuzhou
Opportunity to enter and grow share of Agriculture
and specialised wheel market ( e.g Harbour Crane)
Ag market located predominantly in the North,
Northern facility required to exploit successfully
26
GKN China
Land Systems in China – New Markets
Early days, just started
Initial focus on High Speed Rail and Wind Turbines
Now investigating supply chain and potential partners
GKN China
China High-speed Railway Market
Definition: any commercial train service in China with an average speed
of 200km per hour or higher
Routes in service: 6,552km – No.1 in the world (including 3,676km of rail
lines with top speeds of 350km/h and 2,876km with speeds up to 250km/h)
New constructed routes: 18,000km by 2020
Upgrades on existing routes: 25,000km by 2020
Planed total network: 50,000km by 2020
Total investment: RMB2 trillion ($300 billion)
Source: Wikipedia website & online news
GKN China
China Wind Power Market
China aims to boost total wind-generated power to 100 GW by 2020
with investments possibly worth more than $150 billion
GKN China
GKN China - Aerospace
GKN China
China Civil Aircraft Fleet Increase
6000
5,055 5,029
5000
4,531
4000
3000
1,134 1,259 1,411
2000
1000
443 485
998
863
754
523 510 527 566 602 664
0
F*: Forecast
Source: AVIC website and AvBuyer website
GKN China
COMAC C919 Aircraft
Program Milestones: First flight in 2014, enter service in 2016
COMAC aims to sell over 2,000 C919 jetliners within the next 20
years and expects 100 C919 jetliners would be ordered in 2010.
GKN China
GKN Aerospace in China
Subcontracting of engine nacelle components for Honeywell 7500
to Hafei Aviation
Several visits of COMAC execs to GKN’s Filton facility confirming
interest in GKN’s composite aero-structure technology for C919
GKN Aerospace now investigating market entry strategies
GKN China
GKN in China - Summary
The first Western automotive supplier to invest in China in 1988
More than 20 years experience in China with wholly owned businesses
and JV’s with various Chinese partners
Leading market positions in automotive and off-highway
Committed to growth with localized product range and development
capabilities, fully integrated in GKN’s global network
Investment plans in place to double in size through organic growth in the
next 5 years
Exploring opportunities for new partnerships in Land Systems and
possibly Aerospace
GKN China
GKN Sponsorship
of UK Pavilion at
Shanghai World
Expo 2010
吉凯恩为2010世博
会英国馆赞助商
Thank you!
谢谢！
35
Shanghai GKN Drive Shaft
June 2010
上海纳铁福
SDS Shareholders
Chinese Shareholders:
• SAIC HASCO- HUAYU Automotive Systems Co., Ltd.
• SDIC HTIC- SDIC High Tech Investment Co., Ltd
• BOCOM- Bank of Communications Co. Ltd
Shanghai Branch
35%
HASCO
50%
GKN
Foreign Shareholders:
• GKN- GKN Driveline International GmbH
10%
SDIC
上海纳铁福
5% BOCOM
Operations
GKN Driveline Chongqing - GDC
(JV with China South Group)
Wu Han Plant
Chang Chun Plant
(under construction)
上海纳铁福
Total headcount: 2700
Land Area : 319,503 sqm
KQ plant: 83,986 sqm
ZP plant: 49,540 sqm
SJ plant: 53,966 sqm
WH plant: 44,035 sqm
CC plant: 52,146 sqm
(under construction)
GDC plant: 35,830 sqm
Shanghai Shen Jiang Plant
Shanghai Kang Qiao Plant
Shanghai Zhou Pu Plant
SDS Organization Chart
Management Office (MO)
Managing Director
Xue Jin Da
Deputy GM
Technical Director
Deputy GM
Commercial Director
Deputy GM
Operation Director
Uwe Paksa
Gu Xiao Feng
Ye Lian Xiang
Technical Centre
LGS / ISIT
CVO
Quality Assurance
Purchasing
Wu Han Plant
Planning
Finance
Personnel Administration
Management
上海纳铁福
Marketing & Sales
GDC
PSO
Shen Jiang Plant
Company Culture
Vision
We aim to be an international best-in-class
driveline company, continually improving to
achieve excellence.
We will create value for our customers,
partners and shareholders.
Mission
We will play our part in building a
harmonious society.
We will build a platform for employee
development and value realization.
Value
Spirit
上海纳铁福
Integrity
Cooperation
Perfection Innovation
Lean
Pragmatic
Precise
Capable
2.00_31
Driveline System
Transfer Case
Propshaft
Rear Axle
Sideshaft
TMD
TMD
Front Axle
CVJ - Sideshafts
上海纳铁福
Sideshaft
CVJ - Propshafts
Shanghai GKN – Customers
上海纳铁福
Engineering & Test Capability
SDS Technical Centre has state of the art design and
test capabilities meeting GKN’s global standards
-
Functional test
Torsional fatigue test
Four Square Life test
Static Torsion test
Quasi-static Torsion test
NVH
上海纳铁福
-
Boot High Temp. test
Boot Low Temp. test
Muddy Bath test
Sealing test
Critical Speed test
Boot deformation
Lean Enterprise Overview
Our vision for Lean is to create a culture of
continuous improvement in all we do, by having
a common approach to improving our Business
& Production processes
Business Process Excellence is an approach
to seeing waste, removing waste and sustaining
improvement throughout the entire value chain
Production Excellence is an approach to
seeing waste, removing waste and sustaining
improvements in the production processes and
associated activities.
People Excellence is a commitment to unlock
the talents of people to create a culture where
continuous improvement is inherent in “the way
that we do things”
Business Excellence prioritises & aligns the
activities and assesses the overall “health” of
the business
上海纳铁福
Lean Enterprise
The SSC (site steering committee) is a team led by top
management driving all LE activities in the company
Lean Enterprise
Business Excellence
Production Excellence
Business Process Excellence
People Excellence
Lean Management
Lean Production
5S
Localization
Pilot cells
上海纳铁福
Careful planning
Lean Investment
Fine Cost
Earnest Marketing
Lean Enterprise Deployment
Shop floor Overview
5S- simplify
FIFO inventory
Plant manager audit
Assy. Cell
Cell info corner
上海纳铁福
Shift start-up meeting
Visual display
Training corner
Cell scoring
VSM workshop
Kaizen
Quality System
ISO9001
ISO/TS16949 (2009)
ISO14001
Ford Q1
上海纳铁福
2009 Customer Awards
上海大众年度最佳综合表现金奖 Gold Medal of Annual Best Supplier of Shanghai VW
上海大众25周年特别贡献奖 25th-Anniversary Special Contribution Awards of Shanghai VW
上海通用产品和服务质量攻关奖 Quality Product and Service Award of Shanghai GM
上海汽车优秀供应商 Excellent Supplier of SAIC
一汽集团优秀供应商 Excellent Supplier of FAW Group
一汽轿车优秀供应商 Excellent Supplier of FAW Car
一汽－大众备件供应商评比最佳合作奖 Best Collaborated Spare Parts Supplier of FAW-VW
东风本田优秀供应商 Excellent Supplier of DongFeng Honda
神龙汽车优秀供应商 Excellent Supplier of Dongfeng Peugeot Citroen Auto (DPCA)
江铃汽车优秀供应商 Excellent Supplier of Jiangling Motors (JMC)
华晨汽车年度质量管理奖 Annual Quality Management Award of Brilliance Auto
四川一汽丰田品质达成奖 Quality Achievement Award of Sichuan FAW Toyota Motor
上海纳铁福
Summary
Shanghai GKN is
• the first auto component JV in China
• strong technology support from GKN
• market development support from SAIC
• balanced management team
• one of the most successful JVs in China
• sustainable growth
• good payback to shareholders
• sound partnership between shareholders
上海纳铁福
Summary
Shanghai GKN is
• the driveline market leader in China
• strong customer relationships
• excellent reputation for quality products
• strong local engineering support
• the largest GKN driveshaft manufacturer in Asia Pacific
•
•
•
•
上海纳铁福
CV shaft output: 6.22m pcs
propshaft output: 526k pcs
forgings: 10.93m pcs
(The above figures reflect 2009 results)