JLR to build new Engine facility in China, before the first plant is up and running ?

VEHICLE manufacturer Jaguar Land Rover could be set to expand its facilities in China even before its existing plant gets into full production.

Reports have suggested the company could be on the verge of committing to a new engine plant to support its new factory in Changshu, in the Jiangshu Province – a joint venture project with Chery.

The Financial Times said the new engine plant would be built on the same site as the Changshu facility although it would be unlikely to see development until after the company’s new engine plant on the i54 site outside Wolverhampton had begun production, which is expected this autumn in advance of the launch of the Jaguar XE.

Such a move in China is a further example of how keen the company is to expand its international presence, especially in emerging markets.

It would also support JLR’s intention of doubling its current production capacity to around 600,000 vehicles per annum.

The Chinese engine plant would support both the JLR-badged vehicles being produced at Changshu and the domestic product it will be producing in partnership with Chery.

The newspaper quotes Ian Harnett, JLR’s purchasing director as saying the opportunity to develop the Chinese plant exists although he would not speculate on any timetable.

The company has been keen to control its own engine supply for some time as it gives the company greater control over its manufacturing strategy.

The FT quoted sources which suggested that construction of an engine factory in China could begin within the next two years. In the meantime, engines produced in Wolverhampton will be shipped to China.

“We will be building more engines in the UK than we do in China, for certain,” Mr Harnett told the Financial Times.

JLR chief executive Dr Ralf Speth said last month that it was likely the first vehicles produced at the factory would be rolling off production lines by the end of this year, ready for sale to Chinese buyers early next year.

REPORT HERE