Sogefi (CIR Group) launches coil spring production in China for passenger cars
From end of 2018 the new suspension plant will be operational in Wujiang,
where the company currently manufactures stabilizer bars
Additional annual sales of € 20 million are expected from 2023
Milan, May 17 2017 – Sogefi, the automotive components company of the CIR Group, has announced a project to start coil spring production for passenger cars in China at the end of 2018.
The purpose of the initiative is to meet the increasing demand for coil springs in China, in view of the growth forecasts for the local car market, the gradual replacement of leaf springs and the higher technical standards required by local manufacturers.
“This new investment - said Laurent Hebenstreit, CEO of Sogefi - allows us to complete our offer of suspension components in China. This will create new opportunities for Sogefi’s development and profitable growth in the world’s largest car market”.
A new 8,000 square-metre plant will be built in Wujiang, in the Shanghai area, on the existing industrial site that currently hosts a 15,000 square-metre stabilizer bar factory, which started operating in 2014.
The start of the new production should ensure additional annual sales of € 20 million for the company from 2023. The investment for the new plant amounts to € 8 million.
When the coil spring plant is fully operational, the Wujiang suspension site will generate € 70 million in annual sales and employ more than 300 people.
Sogefi considers environmental protection to be a major responsibility, working in advanced partnership with the Wujiang local authorities in relation to the current business and the new coil spring production plant.
17 May 2017 | 09:00 CEST